Elering earns 22 million euros profit in H1

Elering’s operating income in the first half of 2019 was 85.1 million euros, operating profit was 29.9 million euros and net profit was 22.0 million euros.

A sum of 10.9 million euros from arbitration dispute received in Q1 and increased income from electricity transit had a positive impact on operating income and profitability. At the same time, due to warm weather, consumption of electricity and gas were down, which had an influence on revenue from transmission of power and gas. Despite this fact, Elering’s operating income in H1 grew by a total of 19 per cent.

Elering’s operating expenses in H1 increased 3.1 per cent year-over-year to 55.1 million euros. The greatest increase – 1.4 million euros – came in expenses related to energy markets. As at the start of the year, the rise in the exchange price of electricity continued, expenses for covering network losses increased by 9 per cent.

At the end of 2018, Elering reviewed the lifespan of its existing assets and in H1 2019 recognized new non-current assets, which led to depreciation for H1 growing by 6 per cent.

Elering’s finance expenses for H1 were 1.1 million euros, a decrease of 4.8 million euros compared to the same period in the previous year. This was due to a successful refinancing of Eurobonds carried out in 2018.

Besides the positive impact of the sum from the arbitration dispute, the company’s net profit of 22 million euros was also influenced by 6.8 million euros in income tax on dividends payable this year.

Elering’s asset volume as at the end of June was 1.02 billion euros and the non-current assets amounted to 879.0 million euros. The volume of non-current assets grew by 94.6 million euros over the course of the year. At the half-year mark, the company’s equity capital was 377.5 million euros and loan volume was 348.4 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.