Enefit Green interim report for Q1 2022

Tallinn, ESTONIA

In Q1 2022, Enefit Green group total revenues increased by 58% y-o-y to €66.7m and EBITDA was up by 75% y-o-y at €45.6m. During the quarter, the group earned net profit of €34.9m (€0.13 per share), which is 124% more than in Q1 2021.

Aavo Kärmas, Chairman of the management Board of Enefit Green comments:

“Continued deficit of green energy prevented energy prices from falling in the first quarter. There is no doubt that in order to achieve a carbon neutrality, we need several times more renewable energy, both in the Baltics and throughout Europe. The most affordable sources of energy are wind and solar farms.

We at Enefit Green have made a promise to increase our production capacities by more than twice by building new wind and solar farms in countries from Finland to Poland. In first quarter, we made an investment decision for the construction of the Purtse wind farm (21 MW) in Estonia and another one for the construction of a solar farm in Debnik, Poland (6 MW). In total, we are currently building four wind farms (capacity totalling 211 MW) in Lithuania, Estonia and Finland, and two solar farms in Poland (total capacity 15 MW). Wind farms in construction will increase our wind power capacity by more than half.

Successful implementation of all plans is based on good cooperation. The cooperation with the Nordic Investment Bank and with Södra, Latvia's largest private forestland owner, both of which started in the first quarter, confirms that increasing use of green energy is considered important in our neighbouring countries.

We also would like to thank the clients who by concluding long-term electricity contracts are providing the needed investment security for renewable energy projects that are important to all of us. We have also continued to work on other projects in our development portfolio. In the second quarter, we expect to make investment decisions regarding production capacities of more than 100 MW.

Favourable wind conditions, good electricity and heat production results and the level of electricity prices helped to achieve an excellent financial result. We strive to ensure that the projects under construction are on schedule, the next investment decisions will be made and that our electricity and cogeneration plants produce at maximum capacity. All this so that we all could have more green electricity.”


Webinar to present the results of Q1 2022

Today, May 5, 2022 at 11.00 EET Enefit Green will host a Webinar in English to present and discuss its Q1 2022 results. To participate, please follow this link.


Significant events during Q1 2022

  • Investment decision to build a 21 MW wind farm in Purtse (Estonia)
  • Investment decision to build a 6 MW solar farm in Debnik (Poland)
  • €80m Loan agreement with Nordic Investment Bank
  • Start of cooperation with Södra in Latvia


Key figures

 Q1 2022Q1 2021ChangeChange %
    Electricity, GWh3683016622%
    Heat, GWh173175-2-1%
    Pellets, th t3834412%
TOTAL REVENUES, m€66.742.224.658%
    Sales revenue, m€
    Renewable energy support and other income, m€
EBITDA, m€45.626.119.575%
NET PROFIT, m€34.915.619.3124%
EPS, € (post-IPO number of shares)


Sales revenues and other operating income

Group’s electricity production in 1Q 2022 was 368 GWh, increasing 22% year-on-year. The implied captured electricity price (including various subsidies) received by the group across markets increased to €127/MWh in Q1 2022, compared with 87 €/MWh in Q1 2021.

The most important revenue driver was the surge in the electricity price in the Estonia price area of the Nord Pool (NP) power exchange, which increased the group’s revenue by around €15.5m. The average price in the NP Estonia price area was €133.4/MWh in Q1 2022, compared with €51.8/MWh in Q1 2021. The calculated sales prices of the group’s production entities that are exposed to fluctuations in the NP Estonia electricity price were €117.2/MWh and €47.3/MWh for respective periods.

Revenue growth was also driven by higher wind energy production volumes as wind conditions were favourable in both Lithuania and Estonia.

Heat energy production decreased by 1% and sales price dropped by 6% compared with a year earlier.

Other operating income was positively impacted by renewable energy and efficient cogeneration support received by the Iru waste-to-energy facility, which grew by €0.4m year on year. The rise is attributable to a one-off adjustment made in Q1 2021 due to an overpayment of support.

The renewable energy support received by our Estonian wind farms increased by €0.2m year on year because output grew by 23%. On the other hand, the eligibility period of the earliest completed part of the Aulepa wind farm (39 MW) expired in July 2021.

EBITDA and segmental breakdown

Group’s EBITDA increased by 75% y-o-y to €45.6m in Q1 2022 driven mostly by the elevated Estonian electricity prices and higher wind energy production volumes in Lithuania and Estonia. Group’s fixed expenses increased by 13% or €0.9m of which 2/3 derived from payroll expenses, driven mainly by expanded development team and growth in compensation.

Based on total revenues and EBITDA for the reporting period, the group’s largest segment is Wind energy (with 62% of total revenues and 76% of EBITDA). The Cogeneration segment contributed 36% to total revenues and 27% to EBITDA. The smallest reportable segment is Solar energy, which accounted for 2% of the group’s total revenues and 1% of the group’s EBITDA.

Among reportable segments, Wind and the Cogeneration delivered the strongest EBITDA growth supported by high electricity prices and favourable wind conditions.

Net profit

The group’s net profit increased more than two times compared to Q1 2021, amounting to €34.9m for the reporting period. The most significant contribution came from high market prices of electricity and from growth of wind energy production volume.

Capital expenditures

The group’s Q1 capital expenditures grew by €5.8m year on year, rising to €13.7m. Growth resulted from development investments, which extended to €13.3m. Out of the total, €10m was invested in the construction of three wind farms: €4.4m in the Purtse wind farm, €4.2m in the Šilale 2 wind farm and €1.4m in the Tolpanvaara wind farm. The largest allocation for solar farms was €1.1m, which was invested in the Zambrow solar farm. Expenditure on the improvement and maintenance of existing assets (baseline investments) amounted to €0.4m in Q1 2022 compared with €0.7m in the same period last year. Baseline investments may differ significantly year on year because they depends on the wind turbines’ repair and maintenance needs.


Condensed consolidated interim income statement

€ thousand   Q1 2022   Q1 2021
Other income8,5798,053
Change in inventories of finished goods and work-in-progress(2,067)(2,784)
Raw materials, consumables and services used(14,134)(9,579)
Payroll expenses(2,443)(1,830)
Depreciation, amortisation and impairment(9,648)(9,579)
Other operating expenses(2,504)(1,914)
Finance income408375
Finance costs(563)(834)
Net finance costs(155)(459)
Profit from associates under the equity method422
Corporate income tax expense(849)(432)
Basic and diluted earnings per share  
Weighted average number of shares, thousand264,2764,793
Basic earnings per share, €0.133.26
Diluted earnings per share, €0.133.26
Basic earnings per share based on post-IPO number of shares  
Post-IPO number of shares, thousand264,276264,276
Basic earnings per share, €0.130.06


Condensed consolidated interim statement of financial position



€ thousand31 Mar 202231 Dec 2021
Non-current assets  
Property, plant and equipment616,258612,503
Intangible assets68,59168,239
Right-of-use assets4,3402,750
Deferred tax assets333442
Investments in associates591578
Long-term receivables4078
Total non-current assets711,732705,300
Current assets  
Trade and other receivables and prepayments23,81722,373
Cash and cash equivalents108,44180,454
Total current assets140,047112,356
Total assets851,779817,656


€ thousand31 Mar 202231 Dec 2021
Share capital264,276264,276
Share premium60,35160,351
Statutory capital reserve479479
Other reserves152,730151,793
Foreign currency translation reserve(1,102)(965)
Retained earnings192,597157,673
Total equity669,331633,607
Non-current liabilities  
Government grants7,4157,458
Non-derivative contract liability23,20723,207
Deferred tax liabilities12,41212,568
Other long-term liabilities3,0003,000
Total non-current liabilities146,767140,130
Current liabilities  
Trade and other payables16,01214,291
Total current liabilities35,68143,919
Total liabilities182,448184,049
Total equity and liabilities851,779817,656


Further information:
Sven Kunsing
Head of Finance Communications

Enefit Green is one of the leading diversified renewable energy producers in the Baltic sea area. The Company wind farms in Estonia and Lithuania, cogeneration plants in Estonia and Latvia, solar farms in Estonia and Poland, a pellet plant in Latvia and a hydroelectric plant in Estonia. In addition the Company is developing several wind and solar farms in the mentioned countries and Finland. As of the end of 2021, the Group had a total installed electricity production capacity of 457 MW and a total installed heat production capacity of 81 MW. During 2021, the Company produced 1,193 GWh of electricity and 618 GWh of heat.




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