2nd Quarter 2024 (unaudited)

In the second quarter of 2024, Elering experienced a decrease in total sales revenue by 13.5%, which equates to a reduction of EUR 7.2 million, bringing the total revenue to EUR 46.0 million. This downturn was primarily influenced by changes in ITC (Inter-Transmission System Operator Compensation) revenues. Unlike 2023, where Elering received ITC revenues of EUR 16 million, in 2024, Elering was a net payer, significantly impacting the overall revenue.

Electricity network revenues saw an increase of 51.1% (EUR 6.3 million), reaching EUR 18.6 million. Gas transmission revenues also surged by 134.2% (EUR 2.8 million), totaling EUR 4.8 million. These increases were largely driven by tariff adjustments. New gas network tariffs implemented in December 2023 aimed to cover associated costs, and in electricity, two different tariff packages were introduced. One package was a fully fixed price, and the other included a fixed component. The transition to these new tariffs caused an initial decline in the first quarter, as some clients opted for fully fixed packages, which had not been anticipated in the original tariff calculations. Revised tariffs, reflecting actual client choices, were enforced from May 2024, reducing the transitional impact.

Energy price stabilization, after the high levels at the beginning of 2023, led to lower network losses expenses for Elering, decreasing by EUR 2.0 million compared to the same period in 2023. However, these savings were counterbalanced by higher balancing energy costs, which were matched by corresponding higher revenues.

Operationally, Elering's costs rose by 4.9%, totaling EUR 47.1 million, partly due to an increase in depreciation costs by EUR 0.4 million resulting from additional investments. Consequently, the profit before taxes for the second quarter saw a decline of 90.6%, resulting in a net profit before taxes of EUR 1.1 million.

Cash flows from operating activities remained positive at EUR 4.7 million. The company invested EUR 68.2 million in non-current assets and received EUR 19.6 million in congestion income. Elering also repaid EUR 2.2 million in loans. By the end of the quarter, the company’s total assets stood at EUR 1.5 billion, with total liabilities at EUR 1.1 billion and owner’s equity of EUR 404.6 million.

In EUR thousands

  30.06.24 30.06.23 31.12.23

Assets
Current assets
Cash and cash equivalents 73,866 111,806 65,533
Short-term financial investments 80,000 40,000 110,000
Accounts receivables and other receivables 56,643 54,059 51,790
Inventories 20,227 21,986 20,247
Total current assets 230,736 227,851 247,570
Investment into associated company 170 133 73
Long term receivables 1,366 0 3,610
Non-current assets 1,309,273 1,128,686 1,216,513
Total non-current assets 1,310,809 1,128,819 1,220,196
TOTAL ASSETS 1,541,545 1,356,670 1,467,766

Liabilities
Current liabilities
Borrowings 11,241 10,605 11,323
Trade and other payables 133,161 82,783 93,613
Total current liabilities 144,402 93,388 104,936
Non-current liabilities
Borrowings 60,912 71,473 66,186
Other long-term liabilities 1,819 9,078 1,705
Deferred revenue 929,788 775,414 880,900
Total non-current liabilities 992,519 855,965 948,791
TOTAL LIABILITIES 1,136,921 949,353 1,053,727

Equity
Share capital 229,890 229,890 229,890
Statutory reserve capital 20,123 18,721 18,721
Retained earnings 154,611 158,706 165,428
TOTAL OWNER’S EQUITY 404,624 407,317 414,039
TOTAL LIABILITIES AND OWNER’S EQUITY 1,541,545 1,356,670 1,467,766

 

In EUR thousands

  2nd Quarter 1st half-year Year
2024 2023 2024 2023 2023
Net sales 45,998 53,197 115,840 120,307 244,748
Other income 1,256 2,363 2,107 4,388 10,053
Goods, raw materials and services 27,827 27,178 65,281 65,245 149,907
Other miscellaneous operating expenses 2,625 1,920 4,475 3,256 7,792
Staff costs 3,986 3,583 8,442 7,319 15,050
Depreciation and amortisation 12,647 12,213 25,735 25,415 53,445
Other operating expenses 45 50 79 200 259
OPERATING PROFIT 124 10,616 13,935 23,260 28,348
Financial income 1,641 1,729 2,300 2,330 5,444
Financial expenses 688 878 1,335 1,935 3,415
PROFIT BEFORE TAX 1,077 11,467 14,900 23,655 30,377
Income tax 4,317 2,340 4,317 2,340 2,340
NET PROFIT -3,240 9,127 10,583 21,315 28,037
 
In EUR thousands
2nd Quarter 1st half-year Year
2024 2023 2024 2023 2023

Cash flows from operating activities

Profit/loss before income tax 1,078 11,465 14,901 23,654 30,377
Adjustments for
Depreciation, amortisation and impairment 12,647 12,213 25,735 25,415 53,445
Change in current assets involved in operating activities -15,226 -509 -5,908 19,576 24,659
Change in liabilities involved in operating activities 20,172 6,416 21,610 761 59,951
Paid interest 918 379 0 0 -4,570
Income tax on dividends 0 0 0 0 -2,340
Other adjustments -14,850 39,501 -13,343 42,253 -5,504
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 4,739 69,465 42,995 111,659 156,018

Cash flows from/used in investment activities

Acquisition of property, plant and equipment and intangible assets -68,154 -34,869 -119,090 -61,877 -167,826
Foreign grants for acquisition of non-current assets 26,245 13,345 26,245 13,345 38,644
Net change in deposits at banks with maturity of more than 3 months 40,000 -25,000 30,000 10,000 -60,000
Proceeds from congestion income 19,603 29,625 33,469 53,076 118,418
Proceeds from sale of property, plant and equipment 0 93 0 127 134
CASH FLOWS USED IN INVESTMENT ACTIVITIES 17,694 -16,806 -29,376 14,671 -70,630

Cash flows from financing activities

Bonds repayment 0 -225,000 0 -225,000 -225,000
Repayment of bank loans -2,166 -2,642 -5,279 -5,279 -10,558
Repayable finance lease liabilities 0 -16 -7 -32 -84
Paid dividends 0 -13,500 0 -13,500 -13,500
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,166 -241,158 -5,286 -243,811 -249,142
Cash and cash equivalents at the beginning of the quarter 53,599 300,305 65,533 229,287 229,287
Cash and cash equivalents at the end of the quarter 73,866 111,806 73,866 111,806 65,533
Change in cash and cash equivalents 20,267 -188,499 8,333 -117,481 -163,754

In EUR thousands

  30.06.24 30.06.23 31.12.23

Assets
Current assets
Cash and cash equivalents 73,866 111,806 65,533
Short-term financial investments 80,000 40,000 110,000
Accounts receivables and other receivables 56,643 54,059 51,790
Inventories 20,227 21,986 20,247
Total current assets 230,736 227,851 247,570
Investment into associated company 170 133 73
Long term receivables 1,366 0 3,610
Non-current assets 1,309,273 1,128,686 1,216,513
Total non-current assets 1,310,809 1,128,819 1,220,196
TOTAL ASSETS 1,541,545 1,356,670 1,467,766

Liabilities
Current liabilities
Borrowings 11,241 10,605 11,323
Trade and other payables 133,161 82,783 93,613
Total current liabilities 144,402 93,388 104,936
Non-current liabilities
Borrowings 60,912 71,473 66,186
Other long-term liabilities 1,819 9,078 1,705
Deferred revenue 929,788 775,414 880,900
Total non-current liabilities 992,519 855,965 948,791
TOTAL LIABILITIES 1,136,921 949,353 1,053,727

Equity
Share capital 229,890 229,890 229,890
Statutory reserve capital 20,123 18,721 18,721
Retained earnings 154,611 158,706 165,428
TOTAL OWNER’S EQUITY 404,624 407,317 414,039
TOTAL LIABILITIES AND OWNER’S EQUITY 1,541,545 1,356,670 1,467,766

 

In EUR thousands

  2nd Quarter 1st half-year Year
2024 2023 2024 2023 2023
Net sales 45,998 53,197 115,840 120,307 244,748
Other income 1,256 2,363 2,107 4,388 10,053
Goods, raw materials and services 27,827 27,178 65,281 65,245 149,907
Other miscellaneous operating expenses 2,625 1,920 4,475 3,256 7,792
Staff costs 3,986 3,583 8,442 7,319 15,050
Depreciation and amortisation 12,647 12,213 25,735 25,415 53,445
Other operating expenses 45 50 79 200 259
OPERATING PROFIT 124 10,616 13,935 23,260 28,348
Financial income 1,641 1,729 2,300 2,330 5,444
Financial expenses 688 878 1,335 1,935 3,415
PROFIT BEFORE TAX 1,077 11,467 14,900 23,655 30,377
Income tax 4,317 2,340 4,317 2,340 2,340
NET PROFIT -3,240 9,127 10,583 21,315 28,037
 
In EUR thousands
2nd Quarter 1st half-year Year
2024 2023 2024 2023 2023

Cash flows from operating activities

Profit/loss before income tax 1,078 11,465 14,901 23,654 30,377
Adjustments for
Depreciation, amortisation and impairment 12,647 12,213 25,735 25,415 53,445
Change in current assets involved in operating activities -15,226 -509 -5,908 19,576 24,659
Change in liabilities involved in operating activities 20,172 6,416 21,610 761 59,951
Paid interest 918 379 0 0 -4,570
Income tax on dividends 0 0 0 0 -2,340
Other adjustments -14,850 39,501 -13,343 42,253 -5,504
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 4,739 69,465 42,995 111,659 156,018

Cash flows from/used in investment activities

Acquisition of property, plant and equipment and intangible assets -68,154 -34,869 -119,090 -61,877 -167,826
Foreign grants for acquisition of non-current assets 26,245 13,345 26,245 13,345 38,644
Net change in deposits at banks with maturity of more than 3 months 40,000 -25,000 30,000 10,000 -60,000
Proceeds from congestion income 19,603 29,625 33,469 53,076 118,418
Proceeds from sale of property, plant and equipment 0 93 0 127 134
CASH FLOWS USED IN INVESTMENT ACTIVITIES 17,694 -16,806 -29,376 14,671 -70,630

Cash flows from financing activities

Bonds repayment 0 -225,000 0 -225,000 -225,000
Repayment of bank loans -2,166 -2,642 -5,279 -5,279 -10,558
Repayable finance lease liabilities 0 -16 -7 -32 -84
Paid dividends 0 -13,500 0 -13,500 -13,500
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,166 -241,158 -5,286 -243,811 -249,142
Cash and cash equivalents at the beginning of the quarter 53,599 300,305 65,533 229,287 229,287
Cash and cash equivalents at the end of the quarter 73,866 111,806 73,866 111,806 65,533
Change in cash and cash equivalents 20,267 -188,499 8,333 -117,481 -163,754