Asset impairment tests completed

Eesti Energia’s management board has finalised impairment tests of property, plant and equipment, and intangible assets as of December 31, 2015. The management board determined that for certain assets the balance sheet carrying value exceeds its recoverable amount and an impairment loss must therefore be recognised. Impairment loss in total amount of EUR 65.6 million will be recorded in Eesti Energia’s Q4 2015 financials. The impairment loss relates to the following assets:

  • Auvere power plant: EUR 39.6 million
  • Assets relating to the Utah project: EUR 26.0 million

When carrying out the impairment tests the management board has taken into account the persistent low and falling prices on both Nordic electricity as well as global oil markets. The impairment loss will have a negative impact on Eesti Energia’s operating and net result in Q4 2015. Eesti Energia will publish its annual report on February 25, 2016.