Elering’s Q1 Financial Results

In the first quarter of this year, Elering had an operating revenue of 43.8 million euros, an operating profit of 23.1 million euros, and a net profit of 20.8 million euros.

According to Peep Soone, Elering’s CFO, the financial results turned out better than forecasted primarily due to the cross-border transmission capacity auction profits. At the same time the domestic transmission volumes diminished due to an unusually mild winter.

Compared to the first quarter of 2013, revenues grew by 1.3 million euros, whereas operating expenses grew by 0.2 million euros, resulting in the growth of operating profit by 1.1 million euros. Most of the increase in revenue came from the cross-border transmission capacity auction on the Estonian-Latvian border: 4.3 million euros. The capacity auction revenue will lower the transmission fees during the next tariff period. However, the revenue from electricity transmission fell by 1.9 million euros mainly due to a warmer winter while tariffs remained unchanged. Revenues from the sale of balancing service fell by 1.8 million euros. Operating expenses continued on the level of the previous year, rising by just 0.2 million euros. Accounted financial costs increased by 0.9 million euros due to the reduction of capitalized interest of large investment objects.

Operating cash flow came to 26.8 million euros, together with (an additional) 20 million euros of support from the European Union for the construction of EstLink 2. Elering’s investments were financed by these sums. In regard to loans no changes occurred during the quarter.

By the end of March, Elering’s assets totalled 720 million euros out of which non-current assets accounted for 678.7 million euros. The company’s equity grew to 294.8 million euros thanks to profit.

Elering is Estonia’s independent and standalone transmission system operator, whose main task is to ensure that Estonia’s consumers enjoy a consistent, high-quality electricity supply. To ensure supply security, Elering maintains and develops the domestic transmission network and external interconnections. Elering manages Estonia’s electricity system in real time, ensuring the functioning of the transmission network and the balance between output and consumption.

Elering’s Q1 financial results are available here.