Eesti Energia Group’s sales revenues amounted to EUR 387.6 million in Q3 2024, a decrease of 5% year-on-year. The reported group EBITDA was EUR 40.6 million, down 56% year-on-year, while the adjusted EBITDA* stood at EUR 43.4 million, a decline of 58%. The Group’s reported net profit was EUR -8.4 million, a decrease of 130% year-on-year, and the adjusted net profit was EUR -5.6 million, down 114%. The electricity segment was the largest contributor to the Group’s EBITDA, representing 67%, followed by the distribution segment at 44%, and the shale oil segment at 11%.

*Adjusted EBITDA and adjusted net profit provide better comparability by eliminating temporary fluctuations in the fair value of long-term Power Purchase Agreements (PPA) derivatives.

Eesti Energia’s sales revenues from electricity decreased by 7% year-on-year to EUR 258 million in Q3 2024. The average electricity sales price, excluding derivative impacts, was 112.5 EUR/MWh, a decrease of 14% year-on-year. The average market electricity price for the Estonian Nord Pool area slightly increased to 96.5 EUR/MWh, up 1% year-on-year. Electricity sales volume for the quarter totalled 2.3 TWh, an increase of 8% year-on-year, with retail sales also at 2.3 TWh. Electricity generation during the quarter was 0.7 TWh, up 21% year-on-year. Renewable electricity production, including wind, solar, and waste wood, increased to 0.4 TWh, up 21% year-on-year, due to new and under-construction wind farms contributing nearly 131 GWh.

The EBITDA of the electricity segment was EUR 27.2 million, down 58% year-on-year. The largest decrease came from realized derivative transactions, which had a negative impact of EUR 40 million compared to the extraordinary levels in Q3 2023. Despite last year’s extremely favourable hedges, we still incurred profit from derivative transactions, but less compared to the base period (Q3 2023). Other negative impacts included a margin impact of EUR -7.4 million due to lower sales prices, partially offset by lower variable costs. The largest positive impact was related to changes in the fair value of derivative instruments and power purchase agreements for renewable energy, which contributed EUR 6.1 million. The adjusted EBITDA for the quarter was EUR 30 million, down 61% year-on-year, compared to EUR 76.3 million in Q3 2023.

Sales revenues from the distribution segment amounted to EUR 65 million in Q3 2024, an increase of 2% year-on-year. Distributed volumes increased by 2% year-on-year to 1.4 TWh for the quarter. The average distribution sales price, or tariff, was 47.9 €/MWh, up 0.4% year-on-year. Distribution EBITDA for the quarter decreased to EUR 17.7 million, down 34% year-on-year, mainly due to higher transmission tariffs.

Sales revenues from shale oil amounted to EUR 38 million, an increase of 2% year-on-year, with sales volumes at 94 thousand tons, down 18% year-on-year. The average shale oil sales price, excluding derivative impacts, decreased to 412 EUR/ton, down 12% year-on-year, due to lower oil market prices. The reference product’s average quarterly market price was 423 EUR/ton, down 12.5% year-on-year. The Group’s average shale oil sales price, including derivative impacts, was 400.2 EUR/ton, up 24% year-on-year. EBITDA from shale oil operations was positive at EUR 4.5 million, up 67% year-on-year, largely due to a gain on derivatives of EUR 9 million. Similar to the electricity segment, we gained from hedges due to the low base period (Q3 2023) value.

EBITDA from the Group’s other products and services totalled EUR -8.8 million in Q3 2023. The most significant impact was a negative EUR 10.1 million from the sale of natural gas, partially offset by wind farm insurance compensation totalling EUR 5.3 million.

The Group’s capital expenditure amounted to EUR 164 million in Q3 2024, down 18% year-on-year. Investments in renewable asset developments totalled EUR 77 million. Electricity distribution network investments were EUR 33 million, aimed at improving connection points for additional solar production capacities and enhancing grid quality. Investments into Enefit-280 shale oil plant amounted to EUR 27 million, which is, after multiple operational test programs, scheduled to be completed late 2025 and will serve as a cornerstone for strategic transformation of current liquid fuels production from shale oil to a chemical industry feedstock.

As of the end of Q3 2024, the Group held EUR 529 million in cash and cash equivalents. The Group had access to EUR 530 million in bank loans, including EUR 320 million in revolving credit facilities and EUR 210 million in long-term loan agreements. Eesti Energia’s net debt was EUR 1,108 million, with a net debt to EBITDA ratio of 2.9x, compared to the company’s financial policy target of 3.5x.

In Q3 2024, Eesti Energia raised EUR 400 million in green hybrid bonds, listed on the London Stock Exchange, to support its business and strengthen its financial position. The funds will be invested in ongoing and planned green energy projects.

Eesti Energia is rated BBB- (negative) by Standard & Poor’s and Baa3 (stable) by Moody’s. The company’s financial policy aims to maintain an investment-grade credit rating and a long-term net debt to EBITDA target of 3.5x. The net debt to EBITDA ratio is expected to increase in the upcoming quarters but remain below the 3.5x target as the Group continues its investment pipeline.

Management expects a slight decline in sales revenue for 2024, while EBITDA is expected to increase slightly compared to 2023. Investments for FY24 are planned to decrease as several projects are near completion. The investment plan includes the launch of several wind and solar farms (incl. Sopi-Tootsi wind park totalling 255 MW of additional production capacity), improvements to the electricity distribution network, and the development of a sustainable chemical industry through the Enefit-280 project.

Eesti Energia will publish its unaudited annual results on 27 February 2025. The Q3 2024 interim report and investor presentation are available on Eesti Energia’s website. An investor call discussing the Q3 2024 financial results will take place on 31 October 2024 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.