Elering Releases Q2 Financial Results

In the second quarter of 2015, Elering recorded revenue of 23.6 million euros, with an operating profit of 2.3 million euros.

In connection with the acquisition of the majority ownership in Võrguteenus Valdus AS, financial results published from this year also include the business activity of the acquired subsidiary. Võrguteenus Valdus is a holding company whose business activities involve ownership of the shares of the Estonian gas transmission network’s owner, Elering Gaas AS.

Revenue fell by 7.3 million euros compared to the second quarter of 2014. According to Elering’s Financial Manager Peep Soone, the reason for the fall lies in the change in accounting principles for recording the proceeds from the cross-border transmission capacity auction. As a result, auction proceeds are not recorded in the operating profits anymore, but are taken into account in balance as a long-term commitment. In the second quarter of last year, the auctions increased revenues by 10.3 million euros. On the expenditure side, the greatest change was caused by 5.0 million euros of income tax on dividends. Elering paid 20.0 million euros in dividends to the state budget.

Operating cash flow brought in 7.3 million euros and cash flow from investment activities took out a total of 23.1 million euros. 10.6 million euros was invested in non-current assets and 20.2 million euros in the subsidiary Võrguteenus Valdus AS. In addition, 7.4 million euros was received from the cross-border transmission capacity auctions. Financing cash flow totalled 12.0 million euros, which consisted of a loan of 32.0 million euros from the European Investment Bank and 20.0 million euros in paid-out dividends. The cash balance decreased by 3.8 million euros over the quarter.

Assets totalled 829.6 million euros by the end of the quarter and equity totalled 306.8 million euros.

Elering manages Estonia’s electricity and gas transmission system to ensure a high-quality energy supply to Estonian consumers at all times. To ensure security of supply, Elering maintains and develops the national transmission grid and international connections.

Elering’s Q2 financial results are available here.