1st Quarter 2020 (unaudited)

Elering’s 2020 operating profit remains stable excluding influence of 2019 extraordinary income

Elering’s total revenues for Q1 of 2020 was 43.0 million euros and the company’s net profit totalled 17.6 million euros.

Compared to 2019, the company’s total revenues decreased by 13.8 million euros. The main reason for the decrease however was the extraordinary income of 10.9 million euros received in Q1 of 2019 as a result of the resolution of an arbitration dispute in Elering’s favour.

The company’s sales revenues fell by 7.7% or 3.5 million euros. The drop in electricity transmission volumes due to warm weather was compensated by greater revenue from gas transmission. The greatest decline was related to balancing energy volumes totalling 2.2 million euros, but since expenses related to energy markets declined by close to the same amount, it did not affect the company’s profit. Not including the extraordinary income, the decrease in income not related to the energy markets was 2.2% or 842 thousand euros.

Operating expenses fell by 3.2 million euros. The main decrease of 2.2 million euros was related to a decrease in balancing energy volumes. The biggest influence on operating expenses was related to the significantly lower costs of losses - 2.8 million euros. The saving was mainly stemmed from cheaper electricity prices.

Overall, Elering earned 18.2 million euros in operating profit, which, when the 2019 extraordinary income is excluded, was at a level comparable to the previous period.

Elering’s cash flow from operating activity in Q1 totalled 23.1 million euros. Elering invested 35.4 million euros into non-current assets and 3.4 million euros came in as income from auctioning off cross-border transmission capacity. The company repaid 2.6 million euros in previously taken loans.

The volume of Elering’s assets as of the end of March was 1,024.5 million euros and equity capital stood at 405.9 million euros.

In EUR thousands

  31.03.20 31.03.19

Assets
Current assets
Cash and cash equivalents 30,774 85,623
Trade and other receivables 45,460 29,886
Total current assets 76,234 115,510
Non-current assets 948,299 859,797
TOTAL ASSETS 1,024,533 975,307

Liabilities
Current liabilities
Borrowings 10,571 7,942
Trade and other payables 29,075 29,068
Total current liabilities 39,646 37,010
Non-current liabilities
Long-term borrowings 330,164 343,176
Other non-current liabilities 248,850 181,920
Total non-current liabilities 579,014 525,097
TOTAL LIABILITIES 618,660 562,107

Equity
Share capital 229,890 229,890
Statutory reserve capital 14,686 13,754
Revaluation reserve -46 0
Retained earnings 161,344 169,556
TOTAL EQUITY 405,873 413,200
TOTAL LIABILITIES AND EQUITY 1,024,533 975,307

 

In EUR thousands

  01.01.20 01.01.19
31.03.20 31.03.19
Revenue 42,138 45,658
Other income 880 11,343
Goods, raw materials and services 11,060 15,550
Other operating expenses 1,399 1,331
Staff costs 2,766 2,137
Depreciation and amortisation 9,539 9,023
Other expenses 30 40
OPERATING PROFIT 18,224 28,921
Finance income 1 2
Finance costs 618 549
Net profit 17,607 28,374

In EUR thousands

  01.01.20 01.01.19
31.03.20 31.03.19

Cash flows from operating activities
Profit/loss before income tax 17,607 28,374
Adjustments for
Depreciation, amortisation and impairment 9,539 9,023
Total netchange of current assets -236 8,952
Total netchange in liablilities related to operating activities -1,519 -575
Other adjustments -767 97
Paid income tax -1,568 0
NET CASH FROM OPERATING ACTIVITIES 23,057 45,871

Cash flows from investing activities
Purchases of property, plant and equipment, and intangible assets -35,431 -22,124
Foreign grants to acquire non-current assets 0 99
Proceeds from congestion income 3,445 1,706
NET CASH USED IN INVESTING ACTIVITIES -31,986 -20,319

Cash flows from financing activities
Repayment of long-term bank loans -2,637 -2,637
Repayable finance lease liabilities -7 -7
NET CASH FROM IN FINANCING ACTIVITIES -2,644 -2,644
     
Net increase/(decrease) in cash and cash equivalents -11,574 22,908
Cash and cash equivalents at the beginning of the quarter 42,347 62,716
Cash and cash equivalents at the end of the quarter 30,774 85,623

In EUR thousands

  31.03.20 31.03.19

Assets
Current assets
Cash and cash equivalents 30,774 85,623
Trade and other receivables 45,460 29,886
Total current assets 76,234 115,510
Non-current assets 948,299 859,797
TOTAL ASSETS 1,024,533 975,307

Liabilities
Current liabilities
Borrowings 10,571 7,942
Trade and other payables 29,075 29,068
Total current liabilities 39,646 37,010
Non-current liabilities
Long-term borrowings 330,164 343,176
Other non-current liabilities 248,850 181,920
Total non-current liabilities 579,014 525,097
TOTAL LIABILITIES 618,660 562,107

Equity
Share capital 229,890 229,890
Statutory reserve capital 14,686 13,754
Revaluation reserve -46 0
Retained earnings 161,344 169,556
TOTAL EQUITY 405,873 413,200
TOTAL LIABILITIES AND EQUITY 1,024,533 975,307

 

In EUR thousands

  01.01.20 01.01.19
31.03.20 31.03.19
Revenue 42,138 45,658
Other income 880 11,343
Goods, raw materials and services 11,060 15,550
Other operating expenses 1,399 1,331
Staff costs 2,766 2,137
Depreciation and amortisation 9,539 9,023
Other expenses 30 40
OPERATING PROFIT 18,224 28,921
Finance income 1 2
Finance costs 618 549
Net profit 17,607 28,374

In EUR thousands

  01.01.20 01.01.19
31.03.20 31.03.19

Cash flows from operating activities
Profit/loss before income tax 17,607 28,374
Adjustments for
Depreciation, amortisation and impairment 9,539 9,023
Total netchange of current assets -236 8,952
Total netchange in liablilities related to operating activities -1,519 -575
Other adjustments -767 97
Paid income tax -1,568 0
NET CASH FROM OPERATING ACTIVITIES 23,057 45,871

Cash flows from investing activities
Purchases of property, plant and equipment, and intangible assets -35,431 -22,124
Foreign grants to acquire non-current assets 0 99
Proceeds from congestion income 3,445 1,706
NET CASH USED IN INVESTING ACTIVITIES -31,986 -20,319

Cash flows from financing activities
Repayment of long-term bank loans -2,637 -2,637
Repayable finance lease liabilities -7 -7
NET CASH FROM IN FINANCING ACTIVITIES -2,644 -2,644
     
Net increase/(decrease) in cash and cash equivalents -11,574 22,908
Cash and cash equivalents at the beginning of the quarter 42,347 62,716
Cash and cash equivalents at the end of the quarter 30,774 85,623