Elering has posted earnings of 34.5 million euros for the first quarter of this year, with operating profits of 17.7 million euros and net profit of 16.1 million euros.
Elering’s financial results were on par with expectations, considering the cyclical nature of electricity consumption. Good results for the winter period allow the company to have more confidence going into the summer period, which is financially more difficult for the energy industry. In the summer, there is less electricity consumption, and tariffs are also lower; at the same time, most of the repair and maintenance work and new investments are conducted in that period. Elering still has more than 100 million euros of investments planned for this year, which are mainly financed with loans.
The results are an improvement on the same quarter of last year: earnings are up by 1.3 million euros, while operating costs are down by 0.4 million euros. This has resulted in an increase in operating profit by 1.7 million euros. The growth in earnings is due to the electricity consumption being slightly higher than anticipated, as well as changes in fees that came into force as of January 1st, 2012. Operating costs have decreased by 0.2 million euros compared to the first quarter of last year, which resulted in an increase in net profit by a total of 1.9 million euros. Cash flows for the financing of capital investment have almost doubled in the same period, going from 8.1 to 15.5 million euros.