Eesti Energia Group Unaudited Results for the Full Year
2024
Sales Revenues
and Profitability
Amid a challenging energy market characterized
by volatile electricity prices, Eesti Energia Group's sales revenue
totalled EUR 1,785 million in 2024, reflecting a 6% year-on-year
decline. The reported Group EBITDA was EUR 398 million, down 9%
year-on-year. The Group's reported net profit amounted to EUR 13
million, an increase of EUR 435 million compared to the previous
year. The bottom-line results reflect a one-time, non-monetary
impairment of fixed assets totalling EUR -171 million, primarily
related to the depreciation of the new Enefit 280 oil shale
plant.
The Group's main revenue and EBITDA
contributors were renewable energy and electricity sales, followed
by the shale oil and distribution segments. Notably, all these
segments posted EBITDA growth, supporting the Group's long-term
strategy of advancing its green journey. Meanwhile, non-renewable
electricity production continued its expected decline in production
volumes, sales, and EBITDA, as these assets primarily serve as
strategic reserve units for Estonia.
Electricity
Segment
Eesti Energia's retail electricity sales volume
totalled 9.8 TWh (-2%), while renewable electricity generation
increased to 2.1 TWh (+35%), driven by newly completed wind farms,
including the Sopi-Tootsi wind farm, and ongoing construction
projects. For the first time, more than half of the Group's
electricity production came from renewable sources-a key milestone
in Eesti Energia's energy transition.
Despite higher production volumes, sales
revenue from renewable energy and electricity fell to EUR 901
million (-8%), mainly due to lower electricity prices. The average
electricity market price in the Estonian Nord Pool Estonia area
fell by 4% to 87.3 EUR/MWh.
Segment EBITDA increased by +23% to EUR 160
million, primarily driven by fair value changes in derivatives and
power purchase agreements, as well as increased capacity from new
renewable energy projects. Negative impacts included lower margins
due to price declines and a minor increase in fixed costs. Adjusted
EBITDA for the year stood at EUR 162 million, down 9% from
2023.
Adjusted
financial figures eliminate temporary fluctuations in the fair
value of long-term Power Purchase Agreements (PPA) derivatives for
better comparability.
Non-Renewable
Electricity Production
Sales revenue from non-renewable electricity
production decreased to EUR 205 million (-19%), primarily due to a
reduction in oil shale-based electricity generation, which fell to
1.2 TWh (-25%). The decline is largely attributed to the expansion
of renewable energy capacities across the region, leading to lower
electricity market prices and reducing the competitiveness of oil
shale power plants. Despite this, these facilities continue to
serve as strategic reserve units for Estonia.
Segment EBITDA declined by EUR 191 million,
mainly due to lower derivative gains. In 2022, the Group was able
to hedge electricity prices at exceptionally high levels. These
hedges still had a significant impact in 2023, but in 2024, their
effect diminished, leading to a normalized situation. As a result,
realized derivative transactions had a EUR -209 million negative
impact compared to 2023. It's important to note we still incurred
profit from derivative transactions but less compared to the base
period of 2023.
Additionally, the temporary revaluation of
derivative instruments resulted in a EUR -42 million impact,
reflecting mark-to-market movements. However, lower CO₂ emission
costs provided a EUR +51 million positive impact on EBITDA.
Overall, the segment's gradual decline aligns with Eesti Energia's
long-term strategy.
Distribution
Segment
Sales revenue from the distribution segment
increased to EUR 306 million (+5%), supported by a rise in
distribution tariffs and distributed volumes.
Segment EBITDA remained stable year-on-year,
rising by +2% to EUR 108 million. The most significant positive
effects came from higher margins (EUR +9 million) and increased
volumes (EUR +2 million). However, higher grid maintenance expenses
(EUR -10 million) negatively impacted EBITDA. These investments in
reliability improvements are expected to reduce future downtimes
and outages.
Shale Oil
Segment
Sales revenue from the shale oil segment
increased to EUR 179 million, up 16% year-on-year. The growth was
driven by positive derivative impacts, despite a 7% drop in sales
volume and a 5% decline in production volume to 451 thousand
tonnes. The average price including derivatives rose by 25% to EUR
410.5/t, effecting the growth in revenue.
Segment EBITDA rose significantly to EUR 116
million, largely due to:
· EUR +35 million
from derivative gains
· EUR +73 million
from one-off free CO₂ emission allowances
· EUR +17 million
from margin improvements due to higher average sales prices and
lower CO₂ costs
Negative effects included lower sales volumes
and higher maintenance-related fixed costs.
Other Products
and Services
Sales revenue from other products and services
declined 16% to EUR 194 million, primarily due to the Group's exit
from the pellet business. EBITDA improved to EUR -3.5 million,
supported by one-off insurance proceeds and contributions from gas
and heat segments.
Investments
Eesti Energia's total capital expenditure in
2024 amounted to EUR 722 million (-7%), with a strong focus on
renewable energy, distribution network upgrades, and the new
Enefit-280 shale oil plant.
Key investment highlights:
· EUR 396 million
for renewable energy, including:
o EUR 229 million
for Sopi-Tootsi wind and solar farm
o EUR 103 million
for Kelme wind farm
· EUR 156 million
for grid maintenance & connections, marking a return to normal
levels after significant investments in 2023
· EUR 78.4 million
for the Enefit-280 shale oil plant, scheduled for completion in
late 2025, which and will serve as a cornerstone for strategic
transformation of current liquid fuels production from shale oil to
a chemical industry feedstock
· EUR 54 million
for other projects, including public EV charging stations and
battery storage systems. Eesti Energia invested EUR 17.5 million in
a battery storage system at Auvere power plant to support
desynchronization and frequency reserve services
Financing and
Liquidity
At the end of 2024, Eesti Energia's total debt
stood at EUR 1,670 million, while net debt declined to EUR 1,201
million. The net debt-to-EBITDA ratio improved to 3.0x.
The Group maintained a strong liquidity
position, with EUR 469 million in liquid assets and total available
funding of EUR 954 million, including undrawn loans and revolving
credit facilities.
Key financing
actions
In Q3 2024, Eesti Energia successfully raised
EUR 400 million in green hybrid bonds, listed on the London Stock
Exchange, to finance its ongoing and planned renewable energy
projects.
Eesti Energia's credit ratings remained at
investment grade:
· BBB- (S&P)
with a negative outlook
· Baa3 (Moody's)
with a stable outlook
The Group's financial policy aims to maintain
an investment-grade credit rating and a long-term net
debt-to-EBITDA target of up to 3.5x.
Outlook
In 2025, the Group anticipates a modest
increase in sales revenue and EBITDA (excluding one-off effects),
supported by planned capacity expansions in renewable energy and
the continued integration of the Baltic electricity market. Capital
expenditure is projected to decline compared to 2024 as major
projects are near completion, including improvements to the
electricity distribution network and the finalization of the
Enefit-280-2 shale oil plant.
Eesti Energia will publish its unaudited annual
results on 28 February 2025. The FY 2024 interim report and
investor presentation are available on Eesti Energia's
website.
An investor call discussing the FY 2024 financial results will take
place on 28 February 2025 at 11:00 London time, 12:00 Frankfurt
time, and 13:00 Tallinn time. Please
register to participate. After
registration, you will receive the details required to join the
conference call.
Further
Information:
Danel Freiberg
Head of Treasury and Financial Risk Management
Eesti Energia AS
Tel: +372 5594 3838
Email: danel.freiberg@energia.ee
