In 2019 Elering’s net profit was 32.8 million euros

According to the audited report for 2019 at the revenue level of 155,2 million euros Elering’s net profit amounted to 32.8 million euros, compared to the net profit of 18.6 million euros in 2018.

The company’s profits from ordinary activities increased by 3.4 million euros, which was accompanied by the contractual penalty of 10.4 million euros last year.

The profit growth was also supported by the decrease in financial expenses due to the issue of new bonds in mid-2018  with a considerably lower interest rate than before. The financial expenses of the company decreased from 7.4 million euros in 2018 to 2.2 million euros last year.

“The focus of Elering’s activity in 2019 was on completing construction of Balticconnector to ensure the launch of the common Finnish-Estonian-Latvian gas market operations in early 2020. The top priority for this year is synchronization of the Baltic electricity systems with those of continental Europe for operating the power system in the new circumstances after 2025 in such a manner that the lights would be kept on and rooms warm in homes throughout Estonia. We also have to do this in a manner that supports the attainment of the climate goals of Estonia and the European Union,” said Elering management board chairman Taavi Veskimägi.

Elering’s sales revenues remained stable, shrinking just 0.6% to 142.1 million euros. The small drop in the sale of electricity network services came from lower transmission volumes balanced by the growth in income from gas network services. The company’s operating costs in 2019 were also fairly stable, hitting 113.4 million euros compared to 113.9 million euros in 2018.

Elering invested 129 million euros last year. The bulk of the investments was related to construction of Balticconnector. At the end of last year the total assets of the company amounted to 1024.4 million euros.

Owners equity amounted to 388.3 million euros and interest-bearing debt obligations were 343.3 million euros. According to the profit distribution proposal, Elering intends to pay 20.6 million euros as dividends in 2020.

Elering’s annual financial results are available here.