CORRECTION: Enefit Green interim report for Q1 2025
CORRECTION:
The previous notification "Enefit Green interim report for Q1 2025" (English
version) included erroneous versions of attachments (English pdf version of the
report itself and accompanying presentation).
Please disregard previous notification and use the corrected attachments in this
notification.
Corrected version follows below.
Enefit Green interim report for Q1 2025
In Q1 2025, the Enefit Green group's operating income decreased by 3% while
operating expenses (excl. D&A) increased by 35% compared to Q1 2024. As a
result, EBITDA fell by 27% to EUR31.0m and net profit for the period decreased by
EUR11.8m to EUR21.7m. (earnings per share EUR0.082).
Juhan Aguraiuja, CEO of Enefit Green comments:
" In the first quarter, we produced 617 GWh of electricity, which is 25% more
than a year earlier, and 105 GWh of thermal energy, which is 19% less. Although
electricity production increased, the overall result for the quarter was
affected by exceptionally low wind speeds in February. The decrease in thermal
energy production was related to the sale of the biomass-based cogeneration and
pellet business, which took place at the end of 2023 and the beginning of 2024.
Despite the increase in regional electricity prices in the Baltics and Poland,
Enefit Green's implied captured electricity price remained a third lower than
last year, which reduced operating income and EBITDA. The main reason was the
deepening of the wind discount - a large part of the production fell at a time
when electricity prices on the market were very low. Digital solutions allow us
to flexibly adapt production and avoid unprofitable sales. Long-term electricity
contracts (PPAs) also help to ensure a more stable and predictable revenue base
in a volatile market situation.
In Lithuania, active construction activities continued at the Kelm? II wind
farm, where the erection of wind turbines has begun. In Poland, we made final
investment decision to build the Strza?kowo solar farm. The projected annual
production of the farm amounts to 45 GWh and 75% of the production is covered by
a 15-year indexed contract for difference (CfD), which helps to mitigate price
risks and ensure stable cash flow.
The changed market situation requires us to be flexible in managing investments
as well as developing our business model. We focus on increasing the return on
invested capital and thereby increasing the value of the company."
Webinar to present the results of Q1 2025
Today, 8 May 2025 at 13.00 EET Enefit Green will host a Webinar in English to
present and discuss its Q1 2025 results. To participate, please follow this link
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_Y2ZmMzNiYWQtYmI1Yy00YThhLThjYWUtMjdhMWI4OTU4M2I1%40thread.v2/0
?context=%7B%22Tid%22%3A%2215cd778b-2b28-4ebc-956c-
b5977a36cd28%22%2C%22Oid%22%3A%22775ae01b-e561-
4cc9-8790-1290c7b28035%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%
22%7D&btype=a&role=a).
Significant events
* Final investment decision to construct 45 MW Strzalkowo solar farm in Poland
* Starting partnership with Sumitomo Corporation to develop Liivi offshore
wind farm
* Eesti Energia's voluntary takeover bid to the shareholders of Enefit Green
Key figures
Q1 2025 Q1 2024 Change Change %
PRODUCTION AND SALES VOLUMES
Electricity production 617 494 123 25%
incl. new wind and solar farms 343 168 175 104%
incl. assets sold 0 4 -4 -100%
Electricity sales 763 627 136 22%
Heat energy production 105 129 -24 -19%
incl. assets sold 0 21 -21 -100%
OPERATING INCOME, mEUR 66.9 68.9 -2.0 -3%
Sales revenue 62.4 56.2 6.3 11%
Renewable energy support and other income 4.4 12.7 -8.3 -65%
EBITDA, mEUR 31.0 42.4 -11.4 -27%
NET PROFIT, mEUR 21.7 33.4 -11.8 -35%
EPS, EUR 0.082 0.127 -0.045 -35%
Revenue and other operating income
The group's Q1 electricity production increased by 123 GWh (+25%) to 617 GWh.
The figure includes the production from new wind and solar farms completed and
under construction, which increased by 175 GWh year on year. Heat production
decreased by 24 GWh (-19%). The decrease in heat production was mainly due to
the assets sold in Q1 2024.
Operating income for Q1 2025 decreased by EUR2.0m compared to the same period last
year - revenue increased by EUR6.3m and renewable energy support and other
operating income decreased by EUR8.3m. Operating income from continuing business
grew by EUR6.0m as relevant revenue grew by EUR8.3m and other operating income
declined by EUR2.4m.
Revenue from the continuing business grew by EUR8.3m, driven by electricity
revenue, which grew by EUR6.7m due to higher electricity production (+127 GWh,
+26%). In Q1 2025, the average electricity price* in the group's core markets
was EUR107.4/MWh (Q1 2024: EUR87.0/MWh) and the group's average implied captured
electricity price** was EUR54.5/MWh (Q1 2024: EUR81.4/MWh). The implied captured
electricity price differs from the average market price in the group's core
markets, because it takes into account long-term fixed-price power purchase
agreements (PPAs), renewable energy support, purchases of balancing energy,
electricity purchases from the Nord Pool day-ahead and intraday markets, and the
fact that the renewable energy generation profile differs significantly from the
base load profile.
The group's average price of electricity supplied to the market in Q1 2025 was
EUR74.6/MWh (Q1 2024: EUR77.6/MWh). The amount of electricity supplied to the market
in Q1 2025 was 330 GWh compared with 292 GWh a year earlier.
In Q1 2025, 433 GWh of the group's electricity production was covered by PPAs at
an average price of EUR65.2/MWh. In Q1 2024, 335 GWh of electricity was supplied
under PPAs at an average price of EUR75.0/MWh. The amount of electricity sold
under PPAs has increased, but the average price of that electricity has
decreased compared to the same period last year because the supply periods under
the PPAs signed at lower prices started in July 2024.
In Q1 2025, we purchased 178 GWh of electricity from the market at an average
price of EUR123.4/MWh, compared with 137 GWh at an average price of EUR106.1/MWh in
Q1 2024. The volume of electricity purchases increased (+41 GWh) due to both
higher purchases for PPAs (+31 GWh) and growth in production volume, which
increased the volume of other purchases (+10 GWh). The volume of electricity
purchased to meet PPA obligations in Q1 2025 was also higher than expected
because wind power production in the period was low due to calm weather, but the
volume of electricity sold under PPAs has increased.
The realised purchase price increased compared to Q1 2024 in line with the rise
in market prices, but the price of electricity sold to the market declined due
to higher wind discounts. Enefit Green's wind discounts in Estonia and Lithuania
were similar to the market level, increasing by 5.4 and 8.7 percentage points
year on year in Estonia and Lithuania, respectively.
The low correlation of production with other Finnish wind farms and the
curtailment of generation capacity during periods of excessively low electricity
prices helped Enefit Green to significantly reduce its Finnish wind energy
discount compared to the market average.
Heat revenue from the continuing business grew by EUR1.2m to EUR2.1m. The rise in
heat revenue was due to an increase in the heat price of EUR11.6/MWh compared to
the same period last year, while heat production from the continuing business
decreased by 3 GWh to 105 GWh (Q1 2024: 108 GWh).
Other operating income from the continuing business decreased by EUR2.4m to EUR4.4m
(Q1 2024: EUR6.8m). Renewable energy support for the continuing business decreased
by EUR2.0m to EUR4.3m. The renewable energy support is linked to the amount of
electricity produced by eligible wind and solar farms in Estonia, the Iru CHP
plant and solar farms in Poland.
The renewable energy support received for eligible generation assets located in
Estonia decreased by EUR2.2m. The support received by the Iru CHP plant decreased
by EUR1.2m and the support received by the Estonian wind farms decreased by EUR1.0m
compared to Q1 2024.
In addition to the market price of electricity, in Q1 2024 the Iru CHP plant
received renewable energy support of EUR53.7/MWh for electricity produced from
renewable sources and efficient cogeneration support of EUR32/MWh for electricity
produced from non-renewable sources in an efficient cogeneration mode. The
payment of support to the Iru CHP plant was terminated early from the beginning
of 2025 in connection with the entry into force of section 59 subsection 1
clause 2 point 8 of the Electricity Market Act. In December 2025, an amendment
to the act was initiated according to which the payment of support to the Iru
CHP plant will be resumed until the end of the support period specified in the
original conditions for eligibility for support.
The eligibility period for the Purtse wind farm started in Q2 2024, which
increased the amount of support received by EUR0.6m year on year, and the
eligibility period for the Aseriaru wind farm ended in October 2024, which
reduced the support received in Q1 2025 by EUR0.9m year on year.
EBITDA
The decrease in the price of electricity sold reduced EBITDA for Q1 2025 by
EUR7.4m compared to Q1 2024. Due to the increase in production volume, the amount
of electricity sold grew significantly, improving EBITDA by EUR10.4m year on year.
As the volume of electricity sold under PPAs has also increased significantly,
the volume of electricity purchased to balance the electricity portfolio
increased, reducing EBITDA by EUR1.4m year on year, and the increase in the market
price of electricity purchased had an additional negative impact on EBITDA (-
EUR5.5m). The overall effect of these items on EBITDA was influenced by both the
volume and profile of electricity generation during the periood.
The impact of the assets sold on EBITDA was negative at EUR6.5m.
The Iru CHP plant, excluding fixed costs and the impacts of electricity price
and volume, increased EBITDA by EUR0.1m. The figure reflects the effects of heat
energy, gate fees for the reception of waste and technological fuel (mainly
natural gas). The results of the Iru CHP plant are described in more detail in
the chapter on the Cogeneration segment.
The increase in the fixed costs of the continuing business reduced EBITDA by
EUR1.9m compared the same period last year, including an increase of EUR0.6m in
research and consulting expenses, an increase of EUR0.5m in the maintenance and
repair costs of production assets and an increase of EUR0.3m in insurance costs
due to an increase in insurance coverage and the addition of insurance for
assets under construction.
Net profit
Q1 2025 net profit decreased by 35% y-o-y to EUR21.7m. The decrease was driven by
decrease of EBITDA and increase of depreciation of fixed assets of continuing
business.
Capital Expenditures
The group's investments in Q1 2025 amounted to EUR37.7m, EUR67.1m less than in Q1
2024. The decrease came from development investments, which totalled EUR36.6m. Of
this, EUR24.6m was invested in the construction of three wind farms: EUR6.8m in the
Sopi-Tootsi wind farm and EUR17.8m in the Kelm? I and II wind farms (EUR3.1m and
EUR14.7m, respectively).
The estimated cost of completing the assets under construction is EUR100m, most of
which is required for the completion of the Kelm? II wind farm and the
Strza?kowo solar farm.
Financing
At 31 March 2025, the amortised cost of the group's interest-bearing liabilities
was EUR734.0m (31 December 2024: EUR734.5m). Loan liabilities to banks accounted for
EUR724.4m of the total, including an outstanding loan balance of EUR5.7m denominated
in Polish zloty.
In Q1 2025, Enefit Green drew down bank loans of EUR20m. No new loan agreements
were signed during the period.Net debt/EBITDA ratio stood at 6.2 at the end of
Q3 2024 (30 June 2024: 5.5). The increase is explained by large volume of
development projects under construction.
The interest rate risk of investment loans with the total outstanding balance of
EUR137.2m has been hedged with interest rate swaps, which fix the interest rates
of the loans in the range of 1.049-1.125% (plus the margin) until the loans
mature. The average interest rate of bank loans drawn down at 31 March 2025 was
3.72% (31 December 2024: 3.90%).
Loans raised but not drawn down at 31 March 2025 totalled EUR195m, the figure
consisting of investment loans of EUR165m and revolving credit facilities of EUR30m.
Condensed consolidated interim income statement
EUR thousand Q1 2025 Q1 2024
Revenue 62,447 56,192
Renewable energy support and other operating income 4,449 12,729
Raw materials, consumables and services used (28,226) (20,674)
Payroll expenses (2,333) (2,225)
Depreciation, amortisation and impairment (10,021) (9,342)
Other operating expenses (5,331) (3,595)
OPERATING PROFIT 20,985 33,085
Finance income 536 570
Finance costs (530) (306)
Net finance income 6 264
Profit (loss) from associates under the equity method 22 (10)
PROFIT BEFORE TAX 21,013 33,339
Income tax income 657 107
PROFIT FOR THE PERIOD 21,670 33,446
Condensed consolidated interim statement of financial position
EUR thousand 31 March 2025 31 December 2024
ASSETS
Non-current assets
Property, plant and equipment 1,422,653 1,394,343
Intangible assets 59,696 59,727
Right-of-use assets 8,522 8,525
Prepayments for non-current assets 37,493 37,536
Deferred tax assets 1,774 1,211
Investments in associates 570 548
Derivative financial instruments 3,372 3,400
Non-current receivables 1,330 1,330
Total non-current assets 1,535,409 1,506,620
Current assets
Inventories 1,827 2,011
Trade receivables 6,934 10,151
Other receivables 10,999 13,291
Prepayments 8,862 7,814
Derivative financial instruments 2,216 3,274
Cash and cash equivalents 35,481 44,023
Total current assets 66,319 80,564
Total assets 1,601,728 1,587,184
EUR thousand 31 March 2025 31 December 2024
EQUITY
Equity and reserves attributable to
shareholders of the parent
Share capital 264,276 264,276
Share premium 60,351 60,351
Statutory capital reserve 8,291 8,291
Other reserves 164,349 163,674
Foreign currency translation reserve 392 182
Retained earnings 285,172 263,502
Total equity 782,831 760,276
LIABILITIES
Non-current liabilities
Borrowings 670,872 669,313
Government grants 2,761 2,809
Contract liabilities 6,345 6,345
Deferred tax liabilities 12,412 12,484
Other non-current liabilities 9,042 8,059
Provisions 193 194
Total non-current liabilities 701,626 699,204
Current liabilities
Borrowings 63,137 65,160
Trade payables 38,021 36,926
Other payables 11,653 19,450
Provisions 2 8
Contract liabilities 4,459 6,161
Total current liabilities 117,272 127,704
Total liabilities 818,897 826,908
Total equity and liabilities 1,601,728 1,587,184
Further information:
Sven Kunsing
Head of Finance Communications
[email protected]
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