1st Quarter 2019 (unaudited)

Elering’s Q1 net profit grew by 11.4 million euros compared to the same period last year, reaching 28.4 million euros.

Elering’s operating income grew by 20 per cent to 57 million euros. The most important contributor to the income growth was extraordinary income in amount of 10.9 million euros, which was received by Elering from a successful arbitration dispute. Considering counterparty's request the details of the dispute will remain confidential.

Due to the warm weather, revenue from the sale of power grid services fell by 1.2 million euros year-over-year in Q1. The warm weather conditions also reduced the volume of gas network services.

On the operating expenses side, expenditures on losses increased by 0.8 million euros due to the higher market price of electricity. All the electricity for compensating losses is purchased by Elering on the power exchange. In connection with new investments, depreciation grew by half a million euros. The company's financial expenses decreased by 2.2 million euros in the first quarter in connection with a successfully refinanced Eurobond in spring 2018.

Overall for Q1, Elering earned an operating profit of 28.9 million euros, compared to 19.7 million a year earlier.

Cash flow from operating activity in Q1 was 45.9 million euros. The company invested 22.1 million euros into assets and 1.7 million euros was received in revenue from auctioning cross-border transmission capacity. The company repaid 2.6 million euros in loans.

Elering’s asset volume as at the end of March was 975.3 million euros and equity was 413.2 million euros.

In EUR thousands

  31.03.19 31.03.18

Assets
Current assets
Cash and cash equivalents 85,623 178,740
Trade and other receivables 29,886 32,465
Total current assets 115,510 211,205
Non-current assets 859,797 759,728
TOTAL ASSETS 975,307 970,934

Liabilities
Current liabilities
Borrowings 7,942 231,301
Trade and other payables 29,068 39,785
Total current liabilities 37,010 271,086
Non-current liabilities
Long-term borrowings 343,176 129,442
Other non-current liabilities 181,920 167,263
Total non-current liabilities 525,097 296,705
TOTAL LIABILITIES 562,107 567,791

Equity
Share capital 229,890 229,890
Statutory reserve capital 13,754 12,898
Retained earnings 169,556 160,355
TOTAL EQUITY 413,200 403,143
TOTAL LIABILITIES AND EQUITY 975,307 970,934

 

In EUR thousands

  01.01.19 01.01.18
31.03.19 31.03.18
Revenue 45,658 47,028
Other income 11,343 421
Goods, raw materials and services 15,550 15,802
Other operating expenses 1,331 1,463
Staff costs 2,137 1,981
Depreciation and amortisation 9,023 8,479
Other expenses 40 33
OPERATING PROFIT 28,921 19,690
Finance income 2 13
Finance costs 549 2,750
Net profit 28,374 16,953

In EUR thousands

  01.01.19 01.01.18
31.03.19 31.03.18

Cash flows from operating activities
Profit/loss before income tax 28,374 16,953
Adjustments for
Depreciation, amortisation and impairment 9,023 8,479
Total netchange of current assets 8,952 -1,164
Total netchange in liablilities related to operating activities -575 -2,007
Other adjustments 97 3,595
NET CASH FROM OPERATING ACTIVITIES 45,871 25,856

Cash flows from investing activities
Purchases of property, plant and equipment, and intangible assets -22,124 -8,721
Foreign grants to acquire non-current assets 99 0
Proceeds from congestion income 1,706 1,273
Other investments 0 40,000
Proceeds from sale of property, plant and equipment 0 5
NET CASH USED IN INVESTING ACTIVITIES -20,319 32,557

Cash flows from financing activities
Repayment of long-term bank loans -2,637 -1,669
Repayable finance lease liabilities -7 0
Contribution to share capital 0 40,000
NET CASH FROM IN FINANCING ACTIVITIES -2,644 38,331
0 0 0
Net increase/(decrease) in cash and cash equivalents 22,908 96,744
Cash and cash equivalents at the beginning of the quarter 62,716 81,997
Cash and cash equivalents at the end of the quarter 85,623 178,740

In EUR thousands

  31.03.19 31.03.18

Assets
Current assets
Cash and cash equivalents 85,623 178,740
Trade and other receivables 29,886 32,465
Total current assets 115,510 211,205
Non-current assets 859,797 759,728
TOTAL ASSETS 975,307 970,934

Liabilities
Current liabilities
Borrowings 7,942 231,301
Trade and other payables 29,068 39,785
Total current liabilities 37,010 271,086
Non-current liabilities
Long-term borrowings 343,176 129,442
Other non-current liabilities 181,920 167,263
Total non-current liabilities 525,097 296,705
TOTAL LIABILITIES 562,107 567,791

Equity
Share capital 229,890 229,890
Statutory reserve capital 13,754 12,898
Retained earnings 169,556 160,355
TOTAL EQUITY 413,200 403,143
TOTAL LIABILITIES AND EQUITY 975,307 970,934

 

In EUR thousands

  01.01.19 01.01.18
31.03.19 31.03.18
Revenue 45,658 47,028
Other income 11,343 421
Goods, raw materials and services 15,550 15,802
Other operating expenses 1,331 1,463
Staff costs 2,137 1,981
Depreciation and amortisation 9,023 8,479
Other expenses 40 33
OPERATING PROFIT 28,921 19,690
Finance income 2 13
Finance costs 549 2,750
Net profit 28,374 16,953

In EUR thousands

  01.01.19 01.01.18
31.03.19 31.03.18

Cash flows from operating activities
Profit/loss before income tax 28,374 16,953
Adjustments for
Depreciation, amortisation and impairment 9,023 8,479
Total netchange of current assets 8,952 -1,164
Total netchange in liablilities related to operating activities -575 -2,007
Other adjustments 97 3,595
NET CASH FROM OPERATING ACTIVITIES 45,871 25,856

Cash flows from investing activities
Purchases of property, plant and equipment, and intangible assets -22,124 -8,721
Foreign grants to acquire non-current assets 99 0
Proceeds from congestion income 1,706 1,273
Other investments 0 40,000
Proceeds from sale of property, plant and equipment 0 5
NET CASH USED IN INVESTING ACTIVITIES -20,319 32,557

Cash flows from financing activities
Repayment of long-term bank loans -2,637 -1,669
Repayable finance lease liabilities -7 0
Contribution to share capital 0 40,000
NET CASH FROM IN FINANCING ACTIVITIES -2,644 38,331
0 0 0
Net increase/(decrease) in cash and cash equivalents 22,908 96,744
Cash and cash equivalents at the beginning of the quarter 62,716 81,997
Cash and cash equivalents at the end of the quarter 85,623 178,740