Elering’s Q4 Financial Results

In the fourth quarter of 2013 Elering's total revenue was 41.5 million euros, operating profit 19.0 million euros and net profit 17.7 million euros.

According to Peep Soone, Elering’s CFO, the financial results of the past two quarters exceeded the forecasts primarily due to cross-border transmission capacity auction revenue. At the same time, the volume of the domestic electricity transmission decreased compared to the same quarter of the previous year due to a milder winter and a higher number of public holidays in December.

Compared to Q4 of 2012, the revenue increased by 6.6 million and operating costs by 4.7 million euros, resulting in the increase of the operating profit by 1.9 million euros. Most of the revenue increase, 5.0 million euros, came from the cross-border transmission capacity auctions on the Estonia-Latvia border. The bottleneck income received will lower the network fees of the next tariff period. The main reasons behind the increase in operating costs were the increase in balance and network loss energy purchase expenses due to the opening of the electricity market, and the abolishment of regulated electricity price. Financial expenses decreased by 0.7 million euros, as a consequence of which net profits increased by a total of 2.6 million euros.

The operating cash flow was 23.2 million euros. However, investments in fixed assets totalled 68.0 million euros. The biggest investment was the purchase of the interconnection between Estonia and Finland, EstLink 1, for 38.5 million euros. Loans from the European Investment Bank and Nordic Investment Bank were used to finance the investments.

Elering is an independent electricity system operator in Estonia whose main duty is to guarantee high-quality electricity supply to Estonian consumers at all times. To ensure the sustainable functioning and security of supply as a crucial service, Elering maintains and develops the national transmission network and external connections. Elering manages the Estonian electricity system in real time, ensuring the functioning of the transmission network as well as the balance between production and consumption.

Read more about Elering’s Q4 financial results here.