Eesti Energia Group audited results for FY2013

Eesti Energia sales revenues for the financial year 2013 amounted to 966 million euros (+18%), while EBITDA reached 310 million euros (+12%) and net profit 160 million euros (+107%).

Financial results

Group turnover increased in 2013 for all key products. Electricity sales revenues expanded mainly due to higher sales volume and sales price (+13% and +18% compared to 2012), whereas shale oil sales volume increased by 10% on the back of record production level. Furthermore, financial hedges enabled the group average shale oil sales price to increase by 6%, which contrasts with the market price reduction compared to 2012 (average price of heavy fuel oil with 1% sulfur content fell by 11%). Distribution network sales revenues increased by 7% mainly due to higher distribution tariff.

Group EBITDA expanded mainly on the back of electricity EBITDA (+32 million euros). Higher power generation and sales volume were the main reasons behind the increase, while higher CO2 costs, border crossing costs to Latvia and expanding fixed costs exceeded the impact of higher sales price for electricity. Group net profit increase was mainly driven by the large impairment of power generation assets in the amount of 63.3 million euros in 2012.

Key performance indicators

Electricity sales amounted to 11.4 TWh in 2013, of which sales to retail customers amounted to 7.1 TWh (-12%) and sales in the wholesale market reached 4.3 TWh (+118%). Group average retail market share following the Estonian full market opening was 71% in 2013, while it maintained 17% and 9% share in Latvian and Lithuanian retail power markets, respectively. Eesti Energia generated 10.6 TWh of power in 2013, which is 13% more than in 2012.

Group distributed 6.3 TWh of electricity last year, which is 1.3% less than in 2012. Main reason for the lower distribution volume was changed client behavior (due to increased electricity price) as well as higher average air temperature compared to 2012.

Eesti Energia sold 208 thousand tonnes of shale oil in 2013, while the production of shale oil amounted to 214 thousand tonnes (+2%).

Capital expenditure

Group capital expenditure reached 419 million in 2013, which is 18% less than in the year before. Main investments were made into new Auvere power plant (170 million euros), distribution network (108 million euros) and Iru Waste-to-Energy unit (32 million euros).

Eesti Energia successfully finished several key projects in 2013. As a result, the end of committed investment program draws closer.

Financing, credit ratings and dividends

Group available liquidity as of the end of 2013 comprised of 84 million euros of cash and cash equivalents and 250 million euros of undrawn loan facilities. Over the course of 2013, Eesti Energia renewed and extended the revolving credit facilities (new maturity 5 years, due in September 2018) with three regional banks. Group also signed a new 100 million investment loan with European Investment Bank in October 2013 to fund distribution network investments in the coming years.

As at 31 December 2013 the Group’s total net debt amounted to 744 million euros. Net debt/EBITDA ratio was 2.4 and financial leverage at 32.5%. The Group paid its sole shareholder, the Republic of Estonia 55.2 million euros of net dividends in 2013.

In addition, most recently in January 2014 the Group tapped Eurobond market for additional 100 million euros to fund the remainder of the investment plan in 2014 and 2015. The Group is rated BBB+ and Baa2 by S&P and Moody´s respectively, both credit ratings have a stable outlook.


Eesti Energia currently expects the sales revenues and EBITDA of the group to remain largely unchanged in 2014 compared to the previous year. The Group has hedged 10.5 TWh of electricity generation (average price of 43.7 €/MWh) and 171,000 tonnes of shale oil production (average price of 472 €/tonne) for 2014. For 2015 the Group has hedged 5.4 TWh of electricity generation (average price of 40.1 €/MWh) and 180,000 tonnes of shale oil production (average price of 428 €/tonne).

To cover the CO2 emission expenses the Group has mainly relied on forward contracts. Together with allocated free of charge CO2 allowances the Group has hedged 27.6 million tonnes (average price of 4.8 €/tonne) for the year 2014 and 8.7 million tonnes (average price of 2.3 €/tonne) for the year 2015.

In 2014 the total capital expenditure is expected to amount to 319 million, with the 300MW Auvere power plant as the main committed investment project alongside distribution network and maintenance investments. Estonian state budget for 2014 foresees 113.6 million euros of net dividends from Eesti Energia.

More information on the audited financial results of Eesti Energia Group is available at Eesti Energia homepage