Income Tax on Dividends Caused 9,7 Million Euros Net Loss for Elering in the Second Quarter

Elering's revenue in the second quarter of this year amounted to 23.9 million euros, operating profit to 0.8 million euros, and net loss to 9.7 million euros. Quarterly revenue, costs and net loss were in accordance with budget plan.

“The biggest impact on Elering`s profitability in the second quarter was from paid income tax on dividends in value of 7.8 million euros. As Competition Authority continually does not take into account income tax on dividends in the capital cost calculation then it is pure expense for the company. We are pleased that our owner still gets the sum in another budget line,” the Elering`s Chairman of the Board Taavi Veskimägi commented.

Compared to the second quarter of 2015, the company's revenue stayed practically in the same level increasing by 0.3 million euros. Revenues from both electricity and gas transmission decreased but balancing service revenue increased. Operating costs increased by 1.8 million euros accordingly to the bigger balancing energy purchases.

Financial costs remained at the same level as in the second quarter of last year but the income tax on dividends increased by 2.7 million euros compared to last year.

Elering’s cash flow from business activity amounted to 9.3 million euros in the second quarter of this year. Elering invested 10.7 million euros in fixed assets. The cross-border transmission capacity auctions revenues were 5.1 million euros. Therefore, the total cash flow from investments was minus 5.6 million euros.

By the end of June, Elering's total assets amounted to 878.7 million euros and its equity capital to 338.4 million euros.

Elering is an independent and autonomous electricity and gas compound system operator, whose main task is to ensure quality energy supply to consumers in Estonia. For this reason, the company manages, administers, and develops the national and cross-border energy infrastructure. By its operation, Elering ensures the conditions for the functioning of the energy market and for economic development.

Take a closer look at the second quarter financial results of Elering here.