Electricity grid distributor Elering has reported 2019 net profits of EUR 32.8 million, up from EUR 18.6 million in 2018, in part aided by lower financial expenses. The company’s main focus last year was the Balticconnector gas pipeline between Estonia and Finland.
The company’s profits from ordinary activities, according to the audited report for 2019 at the revenue level of EUR 155.2 million, increased by EUR 3.4 million euros, taking into account a contractual penalty of EUR 10.4 million last year, Elering said in a press release.
Profit growth was also supported by a decrease in financial expenses resulting from new bonds issued in mid-2018, at a considerably lower interest rate than before.
Elering’s financial expenses fell from EUR 7.4 million to EUR 2.2 million, 2018-2019, the company says.
Elering’s sales revenues remained stable, shrinking by 0.6%, to EUR 142.1 million over the same period.
The small drop was the result of lower transmission volumes, balanced by a growth in income from gas network services, Elering says.
The company’s operating costs in 2019 were also fairly stable at EUR 113.4 million, compared with EUR 113.9 million the previous year.
“The focus of Elering’s activity in 2019 was on completing construction of Balticconnector to ensure the launch of the common Finnish-Estonian-Latvian gas market operations in early 2020,” said Elering management board chair Taavi Veskimagi.
“The top priority for this year is the synchronization of the Baltic electricity systems with those of continental Europe, for operating the power system in the new circumstances after 2025, in such a manner that lights will be kept on and rooms kept warm in homes throughout Estonia. We also have to do this in a manner that supports the attainment of the climate goals of Estonia and the EU,” Veskimagi went on.
Elering reported EUR 129 million in investments for 2019, primarily related to Balticconnector, which was opened in December 2019.
At the end of last year, the total assets of the company amounted to a reported EUR 1024.4 million.
Owners’ equity amounted to EUR 388.3 million, and interest-bearing debt obligations stood at EUR 343.3 million, the company says.
According to its profit distribution proposal, Elering intends to pay out EUR 20.6 million in dividends for 2020. (ERR/Business World Magazine)