In Q2 2022, Enefit Green group total revenues increased by 30% y-o-y to EUR47.3m
and EBITDA was up by 51% y-o-y at EUR30.7m. During the quarter, the group earned
net profit of EUR16.9m (EUR0.06 per share), which is 80% more than in Q2 2021.
Aavo Kärmas, Chairman of the management Board of Enefit Green comments:
"Energy prices in the region continued to break new records in the second
quarter, keeping consumers and industry under intense pressure across Europe.
European countries are abandoning Russian gas and oil and are searching for new
and alternative solutions. The only viable long-term solution for the energy
crisis is electrification through renewable sources replacing fossil energy
sources such as motor fuels in transport or natural gas in heat production. The
more we can produce green electricity, the less we will depend on uncertain and
expensive fossil fuel supplies.
Enefit Green is currently constructing four new wind farms in Estonia, Lithuania
and Finland and three solar farms in Estonia and Poland. Investments in new
assets amounted to about 40 million euros during the second quarter. In order to
accelerate the deployment of renewable electricity and reduce the carbon
footprint in the region, we will quadruple the current production capacity (457
megawatts) to about 1900 megawatts by 2026. For this purpose, we are investing
ca 1.5 billion euros in new development projects.
The most recent step in the implementation of the growth plan is the acquisition
of the Tootsi wind farm. We plan to simultaneously build the Tootsi (74 MW) and
Sopi (161 MW) wind farms and double the current production of Estonian wind
power by doing so. The implementation of the growth strategy is also supported
by the construction of the new 32MW Purtse solar farm. Together with the wind
farm to be built nearby (21 MW), it will become Estonia's first hybrid farm for
large-scale electricity production.
In May, the general meeting of shareholders of Enefit Green decided to pay
investors a dividend of 0.151 euros per share for financial year 2021. In total,
we distributed investors nearly 40 million euros in dividends, or 50% of the net
profit in 2021. Just as prescribed by our dividend policy.
To grow production of renewable energy, and together with it our financial
results and dividends in the future, we plan to make investment decisions for
the construction of new wind and solar parks in the amount of 358 MW before the
end of this year."
Webinar to present the results of Q2 2022
Today, August 4, 2022 at 13.00 EEST Enefit Green will host a Webinar in English
to present and discuss its Q2 2022 results. To participate, please follow this
link (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MjlkNmFlOTktMGUzNy00NThjLTg0MjMtNzZmY2I4NWMxMGZj%40thread.v2/0
?context=%7B%22Tid%22%3A%2215cd778b-2b28-4ebc-956c-
b5977a36cd28%22%2C%22Oid%22%3A%22775ae01b-e561-
4cc9-8790-1290c7b28035%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%
22%7D&btype=a&role=a).
Significant events
* Approval of the updated strategy
* Final investment decision on 32MW Purtse solar farm (Estonia)
* Sale of minority stake in Wind Controller
* Annual general meeting of shareholders and dividend distribution
* 74MW Tootsi wind farm project acquisition (July 2022)
* Change in the management board composition (July 2022)
Key figures
Q2 2022 Q2 2021 Change Change %
PRODUCTION VOLUMES
Electricity, GWh 270 256 15 6%
Heat, GWh 152 146 6 4%
Pellets, th t 36 26 9 35%
TOTAL REVENUES, mEUR 47.3 36.2 11.0 30%
Sales revenue, mEUR 41.5 29.4 12.1 41%
Renewable energy support and other income,
mEUR 5.8 6.8 -1.1 -16%
EBITDA, mEUR 30.7 20.3 10.4 51%
NET PROFIT, mEUR 16.9 9.4 7.5 80%
EPS, EUR (post-IPO number of shares) 0.06 0.04 0.03 80%
Sales revenues and other operating income
Group's electricity production in 2Q 2022 was 270 GWh, increasing 6% year-on-
year. The implied captured electricity price (including various subsidies)
received by the group across markets was EUR127/MWh in Q2 2022, compared with 87
EUR/MWh in Q2 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 EUR11.5m. The average market price in the NP Estonia
price area in Q2 2022 was 142.0 EUR/MWh compared with 54.6 EUR/MWh in Q2 2021. The
implied captured electricity prices of the group's Estonian production entities
in the two periods were 115.9 EUR/MWh and 45.0 EUR/MWh. The implied captured
electricity price differs from the average NP price because wind farms do not
produce the same amount of electricity in each hour and the figure also includes
the effects of long-term fixed-price power purchase agreements (PPAs).
Wind conditions in Q2 2022 were comparable to Q2 2021 and their influence on the
production results was relatively neutral.
Heat energy production increased by 4% and sales price increased by 8% compared
with a year earlier.
Other income for Q2 2022 was strongly affected by a decrease in the renewable
energy support received by the group's Estonian wind farms, which dropped by
EUR0.9m year on year. The eligibility period of the Tooma 1 wind farm expired in
April 2022 and that 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 51% y-o-y to EUR30.7m in Q2 2022 driven mostly by the
elevated Estonian electricity prices and somewhat by higher wind energy
production volume in Estonia.
Variable costs have increased by EUR7.0m, which is largely due to the increase in
the price of balancing energy transactions due to the increased price of
electricity and the change in the financial accounting of intraday Nord Pool
transactions (EUR2.9m), which has no effect on EBITDA. In addition, the cost of
technological fuel (EUR2.4m) and other direct production costs (EUR1.8m) have also
increased.
Group's fixed expenses increased by 19% or EUR1.4m of which around half derived
from payroll expenses, driven mainly by expanded development team and growth in
compensation.
Based on total revenues and EBITDA, the group's largest segment is Wind energy
with 57% of total revenues and 67% of EBITDA for the reporting period. The
Cogeneration segment contributed 34% to total revenues and 35% to EBITDA. The
smallest reportable segment is Solar energy, which accounted for 8% of the
group's total revenues and 4% of the group's EBITDA for Q2.
Among reportable segments, Wind and the Cogeneration delivered the strongest
EBITDA growth supported by high electricity prices.
Net profit
The group's net profit increased 80% compared to Q2 2021, amounting to EUR16.9m
for the reporting period. The most significant positive contribution came from
high market prices of electricity , but also from lower net financial expenses.
At the same time EUR4.3m increase in corporate income tax expense (primarily
related to the dividend distribution from Estonian profits) had considerable
negative effect on net profit growth.
Capital Expenditures
The group's Q2 capital expenditures grew by EUR4.8m year on year, rising to
EUR40.9m. Growth resulted from development investments, which extended to EUR39.9m.
Out of the total, EUR37.8m was invested in the construction of three wind farms:
EUR24.9m in the Akmene wind farm, EUR6.9m in the Shilale 2 wind farm and EUR6.0m in the
Tolpanvaara wind farm. The largest investment in solar power was EUR1.1m, which
was invested in the execution phase of the Purtse solar farm. Baseline
investments (expenditure on the improvement and maintenance of existing assets)
amounted to EUR1m in Q2 2022 compared with EUR1.8m in the same period last year and
were mainly related to operating turbines. Baseline investments may differ
significantly quarter by quarter because they depend on the wind turbines'
repair and maintenance needs during the period.
Condensed consolidated interim income statement
EUR thousand Q2 2022 Q2 2021 1H 2022 1H 2021
Revenue 41,505 29,408 99,646 63,522
Renewable energy support and other income 5,773 6,833 14,352 14,886
Change in inventories of finished goods
and work-in-progress 4,646 (3,158) 2,579 (5,942)
Raw materials, consumables and services
used (16,365) (9,508) (30,499) (19,086)
Payroll expenses (2,169) (1,477) (4,612) (3,307)
Depreciation, amortisation and impairment (9,644) (9,547) (19,292) (19,126)
Other operating expenses (2,645) (1,772) (5,150) (3,688)
OPERATING PROFIT 21,101 10,778 57,025 27,259
Finance income 1,117 50 1,525 145
Finance costs (626) (1,022) (1,188) (1,576)
Net finance costs 491 (972) 337 (1,431)
Profit (loss) from associates under the
equity method (76) (58) (72) (36)
PROFIT BEFORE TAX 21,516 9,748 57,290 25,792
Corporate income tax expense (4,592) (328) (5,441) (760)
PROFIT FOR THE PERIOD 16,924 9,420 51,849 25,032
Basic and diluted earnings per share
Weighted average number of shares,
thousand 264,276 4,793 264,276 4,793
Basic earnings per share, EUR 0.06 1.97 0.20 5.22
Diluted earnings per share, EUR 0.06 1.97 0.20 5.22
Basic earnings per share based on post-
IPO number of shares
Post-IPO number of shares, thousand 264,276 264,276 264,276 264,276
Basic earnings per share, EUR 0.06 0.04 0.20 0.09
Condensed consolidated interim statement of financial position
EUR thousand 30 June 2022 31 Dec 2021
ASSETS
Non-current assets
Property, plant and equipment 647,634 612,503
Intangible assets 68,578 68,239
Right-of-use assets 4,298 2,750
Prepayments 20,030 20,710
Deferred tax assets 734 442
Investments in associates 427 578
Derivative financial instruments 6,703 -
Long-term receivables 40 78
Total non-current assets 748,444 705,300
Current assets
Inventories 16,267 9,529
Trade and other receivables and prepayments 23,479 22,373
Cash and cash equivalents 90,845 80,454
Derivative financial instruments 12 -
Total current assets 130,603 112,356
Total assets 879,047 817,656
EUR thousand 30 June 2022 31 Dec 2021
EQUITY
Equity and reserves attributable to equity holder of
the parent
Share capital 264,276 264,276
Share premium 60,351 60,351
Statutory reserve capital 3,259 479
Other reserves 158,317 151,793
Foreign currency translation reserve (1,209) (965)
Retained earnings 166,836 157,673
Total equity 651,830 633,607
LIABILITIES
Non-current liabilities
Borrowings 132,297 93,884
Goverment grants 7,344 7,458
Non-derivative contract liability 23,207 23,207
Deferred tax liabilities 12,384 12,568
Other long-term liabilities 3,000 3,000
Provisions 12 13
Total non-current liabilities 178,244 140,130
Current liabilities
Borrowings 22,936 29,572
Trade and other payables 25,791 14,291
Provisions 55 56
Derivative financial instruments 191 -
Total current liabilities 48,973 43,919
Total liabilities 227,217 184,049
Total equity and liabilities 879,047 817,656
Further information:
Sven Kunsing
Head of Finance Communications
investor@enefitgreen.ee
(https://www.globenewswire.com/Tracker?data=eahglFI0K4UUxwsmqXkQdO3N_ld1uojlGTE_
vteiKcyQu1wfu3r9tXxEfe64TI9iPjXXdLcA-1wKJKK402r4cwPqdjBXLG-Ga36PZFEEUJ4=)
https://enefitgreen.ee/en/investorile/
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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