News

In the first quarter of 2021, Eesti Energia's sales revenue increased by a third year-over-year to EUR 297.3 million, and the company earned a net profit of EUR 26.5 million.

EBITDA decreased by 46% to EUR 72.4 million over the year. While last year’s first quarter ended with a loss of two million euros for the company, then this year with a net profit of 26.5 million euros.

According to Andri Avila, Member of the Management Board and Chief Financial Officer of Eesti Energia, the strong overall result was based on the increase in production and sales volumes, higher energy prices, and lower fixed costs than last year.

"Compared to 2020, the temperatures in the first three months of the year were on average almost six degrees lower. This led to a 10% increase in electricity consumption. The increased demand for electricity raised both the market prices and the need for our thermal power plants," Avila noted.

The Group's electricity sales in its home markets from Finland to Poland increased by 13% over the year to 2.5 TWh. Of the home markets, sales growth was fastest in Lithuania where Eesti Energia has become the second largest electricity seller after the gradual opening of the electricity market there. Electricity prices in the Nord Pool market were on average twice as high as last year, being the main reason for the increase in sales revenue.

At the same time, electricity production increased by a third year-on-year to 1.3 terawatt-hours. The output was increased by higher market prices of electricity and the demand for steerable production during the cold and windless period.

Eesti Energia's thermal power plants operated at a capacity of up to 1,200 MW during peak consumption. The company thus fulfilled the owner's expectation to maintain production capacity to ensure the average electricity consumption in Estonia.

The production of liquid fuels with its 125,000 tons remained at last year's level. Global market demand for liquid fuels and product prices have increased quarter on quarter in oil markets since the shock of the Covid-19 pandemic a year ago, being close to pre-crisis levels.

During the first quarter, Eesti Energia made several commercially important decisions, from the Purtse wind farm to be built in Ida-Virumaa by 2023 to the acquisition of Imatra which provides network services in Läänemaa and Viimsi.

"Looking to the future, our new business line of entering into long-term, up to ten-year wind energy sales agreements with Estonian, Latvian and Lithuanian business customers seeking to reduce their environmental footprint and gain long-term price security is even more significant. The volume of the agreements concluded in three months reached two terawatt-hours, which is about a quarter of Estonia's annual electricity consumption,” Avila noted.

"For our renewable energy company Enefit Green - the leading wind energy producer and developer in the Baltic States, it gives confidence in the implementation of its existing and new wind energy developments, but we are also partners with other renewable energy developers in implementing their projects," Avila added.