Elering to Reinvest Profits into Development of Estonian Power System

Elering has posted earnings of 94 million euros for 2011, with expenditures of 66 million euros. Last year’s net profit reached 20.5 million euros, and it will be entirely reinvested over the upcoming years.

Last year, Elering’s income grew by nearly 6% compared to 2010, to a total of 94 million euros. Operating costs for 2011 came to 66 million euros, a decrease of 2 million euros compared to the previous year. The company’s net profit has increased by 7 million euros in one year, to a total 20.5 million euros. The return on invested capital was recorded at 7.5%, an increase of 1.3% on 2010.

“Because 2011 saw the beginning of a capital-intensive investment period that will last until 2014, we have submitted a proposal to our owner, the Ministry of Economic Affairs and Communication, to reinvest the entire net profit into the development of the power system. We are planning to increase the volume of investment by 50 million euros this year, compared to last year,” said Peep Soone, Elering’s CFO. In 2011, Elering invested 78 million euros into fixed assets, and the investment plan is set to increase to 128 million euros for 2012.

“In addition to the regular investments into the replacement of amortised power transmission equipment, we are also continuing with major investment projects such as the construction of the EstLink 2 interconnector between Estonia and Finland, and the emergency reserve power station being built in Kiisa,” added Soone. Elering will invest a total of 378 million euros into the Estonian power system between 2012 and 2014. “The need for investment clearly serves the interests of all Estonian electricity consumers. The development of the existing power system and the construction of new external links are prerequisites for the delivery of high-quality, standards-compliant electrical power to all consumers.”

Elering’s annual report for the year 2011 can be found here.

Elering is the Estonian transmission system operator, whose primary mission is to ensure a uninterruptible, high-quality electricity supply to the Estonian consumers. To ensure security of supply of electricity, Elering operates and develops the national transmission network and external connections. Elering manages Estonia’s power system in real time, ensuring the functioning of the transmission network and the balance between production and consumption.