Elering’s Q3 Financial Results

Elering posts third-quarter operating income of 20.9 million euros, operating profit of 4.4 million euros, and net profit of 3.1 million euros.

According to Peep Soone, Elering’s Financial Manager, the third quarter turned out better than forecasted primarily due to the unusually large income from a transmission capacity auction – 3.3 million euros in total. In circumstances where electricity traders wish to use more cross-border transmission capacity than is technically possible, the transmission capacity is sold at auction. The auction income does not increase Elering’s earnings; instead, the earned income offsets future network service fees.

Income grew by a total of 3.3 million euros compared to the same quarter last year, while operating costs fell by 0.8 million euros. The result was a 4.2 million euro increase in operating profits. Financial costs fell by 1.4 million euros, resulting in a total increase in net profits of 5.5 million euros.

The operating cash flow was negative by 0.2 million euros. The cash flow was 10.7 million euros less than the same period last year. The reason for the decrease was the 10.4 million euro interest payment on Elering’s euro bonds, which was made for the first time in July of 2012.

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 Q3 financial results are available here.