4th Quarter 2022 (unaudited)

Total revenue in 4th quarter in 2022 increased by 71.5% amounting to EUR 143.6 million. 66.0% of the increase was related to the fact that excessive expenses for the losses and some operating expenses was covered by the congestion income subject to the consent of Competition Authority.

Compared to the 4th quarter in 2021, the transmission volumes in electricity decreased by 8.3% and gas transmission volumes decreased by 36.9%. As the new tariffs for electricity transmission became effective starting from 1st April 2022 which was part of the cause for increase in transmission revenues. The electricity transmission revenues in 4th quarter in total increased by 10.3% or EUR 2.9 million, whilst the gas transmission revenues decreased by 36.9% or EUR 2.1 million. Starting from 1st July 2022 the congestion revenue is partially recognised as revenues, in order to compensate the sharp increase of electricity losses as a result of the rocketed electricity prices. During the fourth quarter EUR 38.5 million of congestion income for compensating electricity losses was recognised in the income statement. In total revenues not related to energy markets increased by EUR 50.4 million.

As Elering is the biggest electricity buyer in Estonia, then high electricity prices have an adverse effect on Elering expenses. Higher electricity price in 2022 affected adversely the network losses by EUR 12.2 million. Salary expenses increased by 0.8 million as a result of increased number of people and some corrections in salary levels and as a result of the higher investments, the depreciation costs increased by EUR 0.3 million in the 4 th quarter in 2022. In total, the operating costs were up by 29.2% amounting to EUR 105.2 million.

The financial expenses increased by EUR 0.3 million to EUR 0.9 million.

In total the net profit in the 4th quarter was EUR 37.6 million.

The cash flows from operating activities were positive of EUR 22.7 million, EUR 36,8 million was invested into the non-current assets, EUR 47.9 million congestion income was received. The company repaid its loans for EUR 2.6 million.

The total assets of the Company were EUR 1.5 billion. Total liabilities stood at EUR 1,1 billion and owner’s equity EUR 399.5 million.

In EUR thousands

  31.12.22 31.12.21

Assets
Current assets
Cash and cash equivalents 229,287 62,668
Short-term financial investments 50,000 42,000
Accounts receivables and other receivables 73,280 59,683
Inventories 22,398 3,658
Total current assets 374,965 168,009
Non-current assets 1,085,978 1,014,845
TOTAL ASSETS 1,460,943 1,182,854

Liabilities
Current liabilities
Borrowings 235,559 12,010
Trade and other payables 72,612 57,135
Total current liabilities 308,171 69,145
Non-current liabilities
Borrowings 76,760 312,095
Other non-current liabilities 676,509 419,526
Total non-current liabilities 753,269 731,621
TOTAL LIABILITIES 1,061,440 800,766

Equity
Share capital 229,890 229,890
Statutory reserve 17,850 17,595
Retained earnings 151,763 134,603
TOTAL OWNER’S EQUITY 399,503 382,088
TOTAL LIABILITIES AND OWNER’S EQUITY 1,460,943 1182,854

 

In EUR thousands

  4th Quarter January-december
2022 2021 2022 2021
Net sales 138,056 81,868 386,975 201,457
Other income 5,548 1,849 11,146 6,672
Goods, raw materials and services 87,357 64,022 309,691 135,210
Other miscellaneous operating expenses 1,749 2,432 7,527 7,076
Staff costs 3,832 2,996 13,304 11,222
Depreciation and amortisation 12,216 11,913 47,676 45,531
Other operating expenses 33 24 62 67
OPERATING PROFIT 38,417 2,330 19,861 9,023
Financial income 35 2 197 16
Financial expenses 878 592 2,645 2,303
PROFIT BEFORE TAX 37,575 1,740 17,414 6,736
Income tax 0 1,628 0 1,628
NET PROFIT 37,575 112 17,414 5,108
 

In EUR thousands

  4th Quarter January-december
2022 2021 2022 2021

Cash flows from operating activities
Profit/loss before income tax 37,574 1,740 17,414 6,736
Adjustments for
Depreciation, amortisation and impairment 12,198 11,913 47,658 45,531
Change in current assets involved in operating activities -28,079 -23,985 -34,185 -20,599
Change in liabilities involved in operating activities 20,705 23,473 16,420 24,272
Paid interest -62 43 -2,239 -2,016
Income tax on dividends 0 0 -1,628 0
Other adjustments -19,633 -454 -30,073 -2,860
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 22,703 12,730 13,367 51,064

Cash flows from/used in investment activities
Acquisition of property, plant and equipment and intangible assets -36,789 -22,065 -117,754 -75,497
Foreign grants for acquisition of non-current assets 19,753 19,649 60,838 31,827
Net change in deposits at banks with maturity of more than 3 months 32,000 -42,000 -8,000 -42,000
Proceeds from congestion income 47,854 34,650 228,731 65,582
Proceeds from sales of financial investment 0 0 0 912
Investments in an affiliate 0 0 -45 0
Proceeds from sale of property, plant and equipment 85 257 115 773
CASH FLOWS USED IN INVESTMENT ACTIVITIES 62,903 -9,509 163,885 -18,403

Cash flows from financing activities
Repayment of bank loans -2,642 -2,642 -10,558 -10,558
Repayable finance lease liabilities -50 -29 -75 -54
Paid dividends 0 -10,000 0 -10,000
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,692 -12,671 -10,633 -20,612
 
Change in cash and cash equivalents 82,914 -9,265 166,619 12,049
Cash and cash equivalents at the beginning of the quarter 146,373 71,933 62,668 50,619
Cash and cash equivalents at the end of the quarter 229,287 62,668 229,287 62,668

In EUR thousands

  31.12.22 31.12.21

Assets
Current assets
Cash and cash equivalents 229,287 62,668
Short-term financial investments 50,000 42,000
Accounts receivables and other receivables 73,280 59,683
Inventories 22,398 3,658
Total current assets 374,965 168,009
Non-current assets 1,085,978 1,014,845
TOTAL ASSETS 1,460,943 1,182,854

Liabilities
Current liabilities
Borrowings 235,559 12,010
Trade and other payables 72,612 57,135
Total current liabilities 308,171 69,145
Non-current liabilities
Borrowings 76,760 312,095
Other non-current liabilities 676,509 419,526
Total non-current liabilities 753,269 731,621
TOTAL LIABILITIES 1,061,440 800,766

Equity
Share capital 229,890 229,890
Statutory reserve 17,850 17,595
Retained earnings 151,763 134,603
TOTAL OWNER’S EQUITY 399,503 382,088
TOTAL LIABILITIES AND OWNER’S EQUITY 1,460,943 1182,854

 

In EUR thousands

  4th Quarter January-december
2022 2021 2022 2021
Net sales 138,056 81,868 386,975 201,457
Other income 5,548 1,849 11,146 6,672
Goods, raw materials and services 87,357 64,022 309,691 135,210
Other miscellaneous operating expenses 1,749 2,432 7,527 7,076
Staff costs 3,832 2,996 13,304 11,222
Depreciation and amortisation 12,216 11,913 47,676 45,531
Other operating expenses 33 24 62 67
OPERATING PROFIT 38,417 2,330 19,861 9,023
Financial income 35 2 197 16
Financial expenses 878 592 2,645 2,303
PROFIT BEFORE TAX 37,575 1,740 17,414 6,736
Income tax 0 1,628 0 1,628
NET PROFIT 37,575 112 17,414 5,108
 

In EUR thousands

  4th Quarter January-december
2022 2021 2022 2021

Cash flows from operating activities
Profit/loss before income tax 37,574 1,740 17,414 6,736
Adjustments for
Depreciation, amortisation and impairment 12,198 11,913 47,658 45,531
Change in current assets involved in operating activities -28,079 -23,985 -34,185 -20,599
Change in liabilities involved in operating activities 20,705 23,473 16,420 24,272
Paid interest -62 43 -2,239 -2,016
Income tax on dividends 0 0 -1,628 0
Other adjustments -19,633 -454 -30,073 -2,860
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 22,703 12,730 13,367 51,064

Cash flows from/used in investment activities
Acquisition of property, plant and equipment and intangible assets -36,789 -22,065 -117,754 -75,497
Foreign grants for acquisition of non-current assets 19,753 19,649 60,838 31,827
Net change in deposits at banks with maturity of more than 3 months 32,000 -42,000 -8,000 -42,000
Proceeds from congestion income 47,854 34,650 228,731 65,582
Proceeds from sales of financial investment 0 0 0 912
Investments in an affiliate 0 0 -45 0
Proceeds from sale of property, plant and equipment 85 257 115 773
CASH FLOWS USED IN INVESTMENT ACTIVITIES 62,903 -9,509 163,885 -18,403

Cash flows from financing activities
Repayment of bank loans -2,642 -2,642 -10,558 -10,558
Repayable finance lease liabilities -50 -29 -75 -54
Paid dividends 0 -10,000 0 -10,000
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES -2,692 -12,671 -10,633 -20,612
 
Change in cash and cash equivalents 82,914 -9,265 166,619 12,049
Cash and cash equivalents at the beginning of the quarter 146,373 71,933 62,668 50,619
Cash and cash equivalents at the end of the quarter 229,287 62,668 229,287 62,668