Fri, 24th Oct 2008 13:12
Eesti Energia's financial results for the first half of financial year 2008/09
Eesti Energia's operating revenue for the first six months of the financial year 2008/09 totalled 291 MEUR, which is 36 MEUR more than in the same period of the last financial year. The group's operating profit was 27 MEUR and net profit 12 MEUR.
Margus Kaasik, the CFO for Eesti Energia, noted, commenting on the results of the half-year, that the main sources for the growth in operating revenue were the sale of electric and thermal energy and shale oil. According to Kaasik, the results were negatively affected by the cost of the emission allowances that was added this year.
"We are working towards the improvement of the efficiency measures of the group and expect a growth in both operating revenue and profit in the 12 months of the financial year, as well as a net profit reaching 58 MEUR," Margus Kaasik, the CFO for Eesti Energia, revealed the forecast for the net profit of the financial year.
Positive event of the first half-year is definitely the success of the subsidiary of Eesti Energia in Latvia. As at the end of September, E.Energy SIA, the subsidiary of Eesti Energia in Latvia, has entered into contracts in Latvia for 320 GWh a year, which makes up about 4% of the total consumption of electric energy in Latvia. The sales of electric energy by E.Energy in the first six months of the present financial year was 26 GWh and since the beginning of sales activities in July 2007, a total of 35 GWh.
The domestic sales of electricity in the first six months of the financial year 2008/09 totalled 3143 GWh, which is 134 GWh or 4.4% more than in the respective period of the financial year 2007/08. The sales of electricity on the open market decreased by 7 GWh (-1.9%); the sales to non-eligible business clients increased by 73 GWh (4.3%), to residential clients by 60 GWh (9.4%) and to network operators by 8 GWh (2.3%).
The export of electricity amounted to 1120 GWh, decreasing by 405 GWh or 26.6% compared to the same period last year. The decrease is mainly caused by smaller export amount to Latvia - in six months, export to Latvia totalled 207 GWh, decreasing by 662 GWh or 76.2%. Export to Finland totalled 912 GWh, increasing by 257 GWh or 39.2%. In the period under discussion, there was no export to Lithuania.
The sale of thermal energy in the first six months totalled 436 GWh, increasing by 66 GWh in comparison with the previous year. The increase was greatly affected by the operation of the Iru Power plant in June-July this year (last year, there was no sale in the same period). The average external temperature that was 0.8 degrees lower in the period April-September 2008 than during the same period last year positively affected the sale of thermal energy.
The price of heavy fuel oil on the world market is closely related to the world market price of petroleum, which in the first six months of the financial year remained between 86-144 dollars a barrel. 70 tons of shale oil was sold in six months.
The investments made in the first six months of the financial year 2008/09 made up 113 MEUR. The focus of investments remains on power networks, where 77 MEUR was invested during the six months. The biggest investments of Põhivõrk were the renovation of the Kiisa switchyards, renovation of the Rakvere and Veskimetsa switchgear and the reconstruction of the 110 V cable line of Ülemiste-Lasnamäe. Jaotusvõrk investments were made in both the construction of new connections and the ensuring of the reliability and quality of power lines. The investments of Eesti Põlevkivi were mainly related to the new gravel project and machinery in the Estonia Mine.
The financial results and business environment of the company will be detailed in the six months interim report, which will be completed in week 45.