OREANDA-NEWS. January 23, 2009. In the first nine months of the financial year 2008/2009, Eesti Energia posted an operating income of 485 MEUR. This constitutes a 65 MEUR or 15.4% increase from the same period last year, reported the press-centre of Eesti Energia.

The consolidated operating profit for the first nine months amounted to 63 MEUR, with the net profit totalling 49 MEUR. Net profit increased by 21.5%, compared to the first nine months of the last financial year. Group investments increased by nearly 45% in the same period, amounting to 167 MEUR. 

“Increase in revenue from electricity and shale oil had a positive effect on the economic results”, Eesti Energia’s financial director Margus Kaasik commented on the results for the first nine months of the financial year 2008/2009.

According to Kaasik, Eesti Energia group is expecting an improvement in the results by the end of the financial year, compared to the previous financial year: “The last quarter was successful for Eesti Energia. We have promptly responded to the changes in the economic environment, and improved our results through efficient cost monitoring and profitable operation on the electricity wholesale market”.

In the first nine months of the financial year 2008/2009, domestic sale of electricity increased by 1.9%, compared to the same period last financial year, amounting to 5,095 gigawatt hours (GWh). The biggest growth—5.1%—could be seen in electricity consumption by residential customers. The rate of growth of the domestic sale of electricity has somewhat decelerated in the last few months.

“Even though export was smaller than last year with respect to volume, we generated nearly 26% more revenue from sales of electricity to other countries than in the last year,” Eesti Energia’s financial director Margus Kaasik commented on the success in energy trading. Revenue from export of electricity amounted to 90 MEUR in the first nine months.

The 507 GWh decrease in export volumes is mainly conditioned by the drop in Latvian export volumes – 438 GWh were exported to Latvia in the first nine months (i.e. a decrease of 747 GWh or 63%). Export to Finland amounted to 1,398 GWh in the first nine months, showing a 240 GWh or 20.8% increase. Export to Lithuania fell short of 1 GWh.

Sale of thermal energy increased by 10 GWh, compared to the first nine months of the last financial year, amounting to 1,009 GWh.

“In the first nine months of the financial year, the total investments of Eesti Energia amounted to 167 MEUR, having increased by 52 MEUR from last year,” Kaasik commented on the group’s activities in renewal of power networks and production. The main focus of the investments was maintained on power networks, with a total of nearly 113 MEUR invested. The investments serve to enhance reliability of the power networks in the future, as well as to reduce the number of power cuts and the related elimination expenses.

The main investments of OU Pohivork were associated with reconstruction of switchgears and cable lines, with the total investments amounting to 33 MEUR. For OU Jaotusvork, the most important investment targets included construction of new connections and securing of the reliability and quality of power lines, with the total investments amounting to 80 MEUR. Investments in electricity and thermal energy production, and fuel amounted to 25 MEUR each.

Domestic losses of network companies incorporated under the Eesti Energia Group amounted to 8.7% in the first nine months of the financial year, decreasing by 0.5 percentage points, compared to the same period last financial year. Revenue from network services increased by 1.8%, i.e. 2 MEUR, compared to the first nine months of the last financial year.

The highlight of the first nine months of the financial year 2008/2009 was the attainment of the 5% electricity market share by Eesti Energia’s subsidiary E.Energy in Latvia. In the first nine months of the financial year, E.Energy’s total electricity sales in Latvia amounted to 89 GWh, having increased by 86 GWh, compared to the same period last financial year. Eesti Energia’s customers in Latvia include major enterprises such as Latvijas Balzams, Severstallat, Valmiera glass fibre plant VSS, etc.

The number of Eesti Energia’s mobile Internet service KOU customers also showed a remarkable growth, growing by 71.7% during the year, and amounting to 22,000 as of the end of December.

The quality of the customer service of Eesti Energia received high recognition in the financial year. According to the Estonian service index survey conducted by TNS Emor in the third quarter, Eesti Energia ranked second among the basic companies.

Highlights of the first nine months of the financial year also included establishment of the joint venture of Eesti Energia and Outotec, aiming at developing and marketing an environment-friendly, energy-efficient and cost-efficient oil shale processing technology, as well as the launch of new companies – Elektritoode AS and Vorguehituse AS.

The financial results of the Eesti Energia Group consolidate the results of subsidiaries rendering production, transmission, distribution, sale and other services. Eesti Energia’s financial year began on 1 April 2008 and will end on 31 March 2009.

The economic results and the company’s operating environment have been described in detail in the interim financial statements for the first nine months, which will be published at the beginning of February, and made available on Eesti Energia’s website.