OREANDA-NEWS. April 26, 2010. According to the preliminary results the revenues of Eesti Energia for the FY 2009/10 ended in March amounted to 701 million euros, operating profit to 133 million euros and net profit to 143 million euros. Increase in Eesti Energia’s net profit was generated mostly from successful energy trading, export of shale oil and increased efficiency, reported the press-centre of Eesti Energia.

“I am glad that despite the recession and drop in domestic sales, Eesti Energia is still a strong and stable company that earns profits as a successful exporter of electricity and shale oil and continues to invest into domestic power generation and upgrading distribution networks,” said CEO Sandor Liive on commenting the preliminary results for the FY 2009/10. “Due to the recession, electricity sales in Estonia dropped approximately four per cent having negative impact on financial results. However, export of liquid fuels and successful energy trading supported the positive results achieved,” added Liive.

Eesti Energia CFO Margus Kaasik said that the Group’s efficiency also grew significantly in the financial year ended 31 March 2010. „Successful cost saving program and improved efficiency were the keywords in the last financial year, which enabled us to retain the investment volume. Our capital expenditure reached 198 million euros, which was 9 million euros more than a year before,” said Kaasik.

Eesti Energia’s domestic electricity sales fell 3.6 per cent in FY 2009/10, amounting to 7,326 gigawatt-hours (GWh). A total of 4,157 GWh of electricity was sold to corporate customers, down by 8.5 per cent from FY 2008/09. Furthermore, Eesti Energia sold 1,772 GWh of electricity to private customers, up by 5.8 per cent from a year ago. Eesti Energia’s sales to network operators amounted to 1,396 GWh, up by 1.7 per cent.

The sale of heat amounted to 1,412 GWh in FY 2009/10, which is 16.4 per cent lower than in the previous financial year mostly because of the decreasing sales by Iru Power Plant.

In FY 2009/10 Eesti Energia exported 2,045 GWh of electricity, down by 6.4% from previous financial year. However, sales revenue increased due to futures transactions entered for hedging purposes, which ensured higher sales price during the periods of low spot price.

Sales of electricity to the Latvian open market customers totalled 358 GWh, which is 185 GWh more than in FY 2008/09. As of the end of March 2010, Eesti Energia had 119 customers in Latvia with total market share of about 6%. Eesti Energia has entered the Lithuanian retail market by selling electricity to six customers with annual consumption of 3 GWh.

Production and sales of liquid fuels from oil shale were also successful in the financial year ended. The sale of shale oil grew by 24 per cent compared to FY 2008/09. Total sale of liquid fuels from oil shale amounted to 1.1 million barrels or 171 thousand tonnes.

Over the last financial year, capital expenditure of Eesti Energia was mostly directed towards power grids, new energy production capacity and new oil plant. In 2009/10, investments in the Retail division amounted to 63 million euros with the aim of ensuring more reliable and higher-quality energy supply. A total of 75 million euros was invested in the Electricity and Heat Generation division. Investments in the Minerals, Oil and Biofuels division amounted to a total of 49 million euros, of which majority (23 million euros) was invested into new Enefit technology-based oil plant.

Eesti Energia Group’s consolidated financial results include the financial results of subsidiaries engaged in generation, distribution and sale of heat and power and providing other services. The consolidated financial results do not include the transmission network Elering, which has been treated as discontinued operations. Eesti Energia’s financial year began on 1 April 2009 and ended on 31 March 2010.

The audited results of FY 2009/10 will be released on 25 May. At that point, the annual report will be publicly available on the Eesti Energia website.