3rd Quarter 2022 (unaudited)

Total revenue in 3rd quarter in 2022 increased by 208,8% amounting to EUR 115,4 million. 71.1% of the increase was related to balancing energy revenues, which increased by EUR 54.6 million.

Compared to the 3rd quarter in 2021, the transmission volumes in electricity decreased by 4.9% and gas transmission volumes decreased by 16.9%. As the new tariffs for electricity transmission became effective starting from 1st April 2022, the electricity transmission revenues in 3rd quarter increased by 5.8% or EUR 0.7 million, whilst the gas transmission revenues decreased by 33.4% or EUR 0.8 million. Starting from 1st July 2022 the congestion revenue is partially recognised as revenues, in order to compensate the sharp increase of electricity losses as a result of the rocketed electricity prices. During the third quarter EUR 22.2 million of congestion income for compensating electricity losses was recognised in the income statement. In total revenues not related to energy markets increased by EUR 22.2 million.

As Elering is the biggest electricity buyer in Estonia, then high electricity prices have an adverse effect on Elering expenses. Higher electricity price in 2022 affected adversely the network losses by EUR 19.9 million. As a result of the higher investments, the depreciation costs increased by EUR 0.2 million in the 3 rd quarter in 2022. In total the operating costs were up by 165.4% amounting to EUR 124.9 million. 70.2% of the increase was related to increase in balancing energy expenses.

The financial expenses decreased by EUR 0.1 million to EUR 0.5 million.

In total the net loss in the 3rd quarter was EUR 10.0 million.

The cash flows from operating activities were negative of EUR 40.0 million, EUR 28.9 million was invested into the non-current assets, EUR 102.3 million congestion income was received. The company repaid its loans for EUR 2.6 million.

The total assets of the Company were  EUR 1.4 billion. Total liabilities stood at EUR 1,017.3  million and owner’s equity EUR 361.9 million.

In EUR thousands

  30.09.22 30.09.21 31.12.21

Assets
Current assets
Cash and cash equivalents 146,373 71,933 62,668
Short-term financial investments 82,000 0 42,000
Accounts receivables and other receivables 64,783 38,216 59,683
Inventories 22,736 3,394 3,658
Total current assets 315,892 113,543 168,009
Non-current assets 1,063,368 1,003,197 1,014,845
TOTAL ASSETS 1,379,260 1,116,740 1,182,854

Liabilities
Current liabilities
Borrowings 10,623 10,636 12,010
Trade and other payables 75,091 54,812 57,135
Total current liabilities 85,714 65,448 69,145
Non-current liabilities
Borrowings 304,304 314,618 312,095
Other non-current liabilities 627,314 369,110 419,526
Total non-current liabilities 931,618 683,728 731,621
TOTAL LIABILITIES 1017,332 749,176 800,766

Equity
Share capital 229,890 229,890 229,890
Statutory reserve 17,850 17,595 134,603
Retained earnings 114,188 120,079 134,603
TOTAL OWNER’S EQUITY 361,928 367,564 382,088
TOTAL LIABILITIES AND OWNER’S EQUITY 1,379,260 1,116,740 1,182,854

 

In EUR thousands

  3rd Quarter January-september Year
2022 2021 2022 2021 2021
Net sales 113,557 36,773 248,919 119,589 201,457
Other income 1,884 1,884 5,598 4,644 7,144
Staff costs 2,827 2,462 9,472 8,226 11,222
Depreciation and amortisation 11,687 11,551 35,460 33,618 45,531
Other operating expenses 10 19 29 43 69
OPERATING PROFIT -9,466 -8,412 -18,556 6,693 9,022
Financial income 112 2 162 14 2,302
Financial expenses 619 586 1,767 1,711 2,302
PROFIT BEFORE TAX -9,973 -8,996 -20,161 4,996 6,736
Income tax 0 0 0 0 1,628
NET PROFIT -9,973 -8,996 -20,161 4,996 5,108
 

In EUR thousands

  3rd Quarter January-september Year
2022 2021 2022 2021 2021

Cash flows from operating activities
Profit/loss before income tax -9,973 -8,996 -20,160 4,996 6,736
Adjustments for
Depreciation, amortisation and impairment 11,687 11,551 35,460 33,618 45,531
Change in current assets involved in operating activities -15,369 -9,367 -6,106 3,386 -20,599
Change in liabilities involved in operating activities -12,122 -959 -4,285 799 24,272
Paid interest -13 -59 -2,223 -2,059 -2,016
Income tax on dividends 0 0 -1,628 0 0
Other adjustments -14,163 -722 -10,394 -2,406 -2,860
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES -39,953 -8,552 -9,336 38,334 51,064

Cash flows from/used in investment activities
Acquisition of property, plant and equipment and intangible assets -28,881 -21,497 -80,965 -53,433 -75,497
Foreign grants for acquisition of non-current assets 27,503 0 41,085 11,935 31,827
Net change in deposits at banks with maturity of more than 3 months -15,000 10,000 -40,000 -10,000 -42,000
Proceeds from congestion income 102,276 19,548 180,877 30,932 65,582
Proceeds from sales of financial investment 0 0 0 912 912
Repayment of bank loans 0 0 -45 0 0
Proceeds from sale of property, plant and equipment 3 301 30 517 773
CASH FLOWS USED IN INVESTMENT ACTIVITIES 85,901 8,352 100,982 -9,137 -18,403

Cash flows from financing activities
Repayment of bank loans -2,637 -2,637 -7,916 -7,916 -10,558
Repayable finance lease liabilities -10 -17 -25 -26 -54
Paid dividends 0 0 0 0 -10,000
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,647 -2,654 -7,941 -7,942 -20,612
 
Change in cash and cash equivalents 43,301 -2,795 83,705 24,109 12,049
Cash and cash equivalents at the beginning of the quarter 103,072 74,728 62,668 50,619 50,619
Cash and cash equivalents at the end of the quarter 146,373 71,933 146,373 74,728 62,668

In EUR thousands

  30.09.22 30.09.21 31.12.21

Assets
Current assets
Cash and cash equivalents 146,373 71,933 62,668
Short-term financial investments 82,000 0 42,000
Accounts receivables and other receivables 64,783 38,216 59,683
Inventories 22,736 3,394 3,658
Total current assets 315,892 113,543 168,009
Non-current assets 1,063,368 1,003,197 1,014,845
TOTAL ASSETS 1,379,260 1,116,740 1,182,854

Liabilities
Current liabilities
Borrowings 10,623 10,636 12,010
Trade and other payables 75,091 54,812 57,135
Total current liabilities 85,714 65,448 69,145
Non-current liabilities
Borrowings 304,304 314,618 312,095
Other non-current liabilities 627,314 369,110 419,526
Total non-current liabilities 931,618 683,728 731,621
TOTAL LIABILITIES 1017,332 749,176 800,766

Equity
Share capital 229,890 229,890 229,890
Statutory reserve 17,850 17,595 134,603
Retained earnings 114,188 120,079 134,603
TOTAL OWNER’S EQUITY 361,928 367,564 382,088
TOTAL LIABILITIES AND OWNER’S EQUITY 1,379,260 1,116,740 1,182,854

 

In EUR thousands

  3rd Quarter January-september Year
2022 2021 2022 2021 2021
Net sales 113,557 36,773 248,919 119,589 201,457
Other income 1,884 1,884 5,598 4,644 7,144
Staff costs 2,827 2,462 9,472 8,226 11,222
Depreciation and amortisation 11,687 11,551 35,460 33,618 45,531
Other operating expenses 10 19 29 43 69
OPERATING PROFIT -9,466 -8,412 -18,556 6,693 9,022
Financial income 112 2 162 14 2,302
Financial expenses 619 586 1,767 1,711 2,302
PROFIT BEFORE TAX -9,973 -8,996 -20,161 4,996 6,736
Income tax 0 0 0 0 1,628
NET PROFIT -9,973 -8,996 -20,161 4,996 5,108
 

In EUR thousands

  3rd Quarter January-september Year
2022 2021 2022 2021 2021

Cash flows from operating activities
Profit/loss before income tax -9,973 -8,996 -20,160 4,996 6,736
Adjustments for
Depreciation, amortisation and impairment 11,687 11,551 35,460 33,618 45,531
Change in current assets involved in operating activities -15,369 -9,367 -6,106 3,386 -20,599
Change in liabilities involved in operating activities -12,122 -959 -4,285 799 24,272
Paid interest -13 -59 -2,223 -2,059 -2,016
Income tax on dividends 0 0 -1,628 0 0
Other adjustments -14,163 -722 -10,394 -2,406 -2,860
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES -39,953 -8,552 -9,336 38,334 51,064

Cash flows from/used in investment activities
Acquisition of property, plant and equipment and intangible assets -28,881 -21,497 -80,965 -53,433 -75,497
Foreign grants for acquisition of non-current assets 27,503 0 41,085 11,935 31,827
Net change in deposits at banks with maturity of more than 3 months -15,000 10,000 -40,000 -10,000 -42,000
Proceeds from congestion income 102,276 19,548 180,877 30,932 65,582
Proceeds from sales of financial investment 0 0 0 912 912
Repayment of bank loans 0 0 -45 0 0
Proceeds from sale of property, plant and equipment 3 301 30 517 773
CASH FLOWS USED IN INVESTMENT ACTIVITIES 85,901 8,352 100,982 -9,137 -18,403

Cash flows from financing activities
Repayment of bank loans -2,637 -2,637 -7,916 -7,916 -10,558
Repayable finance lease liabilities -10 -17 -25 -26 -54
Paid dividends 0 0 0 0 -10,000
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,647 -2,654 -7,941 -7,942 -20,612
 
Change in cash and cash equivalents 43,301 -2,795 83,705 24,109 12,049
Cash and cash equivalents at the beginning of the quarter 103,072 74,728 62,668 50,619 50,619
Cash and cash equivalents at the end of the quarter 146,373 71,933 146,373 74,728 62,668