Elering to invest all of its profit in the development of the electricity transmission system

Elering’s 2012 annual report showed the company’s revenue was 109.5 million euros while the net profit was 34.9 million euros. All of the company’s profit is to be used to finance investments.

Its operating profit has increased by 14.9 million euros (16%) compared with the previous year and operating expenses have increased by a mere 2.1 million euros (3%). Elering has saved money by reducing all of its expenses (except for depreciation and purchased network service). Financial expenses have dropped by 2.1 million euros compared to 2011.

Last year, Elering created an additional 15.8 million euros worth of economic value added (EVA) for the state, compared to the return on equity established by the Estonian Competition Authority. “In 2012, Elering showed its best results of all times. We have set a strategic goal of creating positive economic value above the expected level every year, due to the effectiveness of our operation. The net profit (which exceeded the value established by the Estonian Competition Authority by 7.6% last year), proves that in the three years since the demerger of Elering from Eesti Energia, we have managed to ensure that all the management systems are operating well including our investments and the development of the electricity market,” says Taavi Veskimägi, Chairman of the Management Board at Elering.

Elering is going to use all of its net profit to finance an extensive investment programme. Last year the company invested 74 million euros in fixed assets. This year, it plans to invest over 200 million euros. “The company’s period of active investment will last until 2015, and it will continue to suggest to the Ministry of Economic Affairs and Communications and the shareholders, that all the net profit should be reinvested in the development of the electricity system. All of the money earned, will go back into the electricity system; which is a win-win solution for both electricity consumers and suppliers,” adds Veskimägi.

At the end of 2012, Elering’s total assets amounted to 515.7 million euros, and tangible assets constituted 461 million euros of the total amount of assets. Equity was 225.1 million euros, and borrowing had reached 227 million euros by the end of December. The company has maintained all of the ratios established by the loan agreements and it is within the required limits.

Elering’s Annual Report 2012 is available here.

Elering is an Estonian electricity system operator which aims to guarantee a high-quality electricity supply to Estonian consumers at all times. To ensure supply, Elering maintains and develops a national transmission network and its external connections. It manages the Estonian electricity system in real time, ensuring that the transmission network functions well and that there is a balance between production and consumption.