Market announcement

Title

Enefit Green unaudited interim report for Q1 2024

Message

Enefit Green group's operating income for Q1 2024 decreased by 11% while
operating expenses for the period decreased by 22% compared to the same period
last year. As a result, EBITDA increased by 3% to EUR42.4m and net profit for the
quarter increased by 10% to EUR33.4m (earnings per share EUR0.13).

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

"We produced 494 gigawatt-hours of electricity (+22%) and 129 gigawatt-hours of
thermal energy (-27%). The increase in electricity production by a fifth was
driven by newly completed wind and solar farms and those under construction
(+131 gigawatt-hours). The decrease in heat output was mainly due to the sale of
biomass assets.

We focused on the completion of wind and solar farms under construction and
invested nearly 105 million euros. We completed construction works at
Tolpanvaara wind farm in Finland. In Lithuania at Akmene wind farm, the
collapsed wind turbine was replaced and first wind turbines were erected in
Kelm? I wind farm. At Sopi-Tootsi renewable energy area in Estonia, we have
reached the installation stage of wind turbines, installation of solar panels is
already ongoing. Compared to the second half of last year, we have significantly
improved the availability of Shilut? wind farm in Lithuania and we continue to
maintain good availability of the WinWind wind turbines in Estonia.

Quarterly KPIs were affected by lower electricity market prices and the prices
of the concluded power purchase agreements (PPA). Due to the setup activities at
the wind farms under construction and low wind speeds, the electricity
production target was not achieved (-95 gigawatt-hours), which continued to
cause significant volumes of electricity purchases.

This year our focus is on timely completion of the wind and solar farms under
construction and maintaining the high availability of existing assets. We will
also continue to work with the development portfolio to increase the value of
the company in the longer run."


Webinar to present the results of Q1 2024

Today,  2 May 2024 at 13.00 EEST Enefit Green will  host a Webinar in English to
present and discuss its Q1 2024 results. To participate, please follow this link
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_NzM5ZDc3NWEtOTdkZi00MzdkLTk4ZjgtODcxNjc1ZTE5OWU5%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

  * Completion of construction works at the Tolpanvaara wind farm in Finland
  * At Akmene wind farm in Lithuania, wind turbine that collapsed last year was
    replaced, start of negotiations with GE regarding compensation for the
    damage
  * Installation of wind turbines started at Kelm? I wind farm in Lithuania
  * Preparations for the installation of wind turbines are being finalized at
    the Sopi-Tootsi wind farm
  * Co-development agreement with RES Global Investment regarding wind farms in
    Poland (up to 360 MW)
  * Direct line power purchase agreement with Elcogen in Estonia
  * With closing of the sale of Valka and Paide cogeneration plants, we have
    completed the exit from biomass assets
  * In agreement with the supervisory board, chairman of the management Board
    Aavo Kärmas will resign as of 1 July 2024


Key figures

+---------------------------------------------+-------+-------+------+--------+
|                                             |Q1 2024|Q1 2023|Change|Change %|
+---------------------------------------------+-------+-------+------+--------+
|PRODUCTION AND SALES VOLUMES                 |       |       |      |        |
+---------------------------------------------+-------+-------+------+--------+
|Electricity production, GWh                  |    494|    406|    89|     22%|
+---------------------------------------------+-------+-------+------+--------+
|incl. new wind and solar farms               |    169|     38|   131|    343%|
+---------------------------------------------+-------+-------+------+--------+
|Electricity sales                            |    627|    495|   133|     27%|
+---------------------------------------------+-------+-------+------+--------+
|Heat energy production, GWh                  |    129|    176|  (47)|   (27)%|
+---------------------------------------------+-------+-------+------+--------+
|                                             |       |       |      |        |
+---------------------------------------------+-------+-------+------+--------+
|OPERATING INCOME, mEUR                         |   68.9|   77.5| (8.6)|   (11)%|
+---------------------------------------------+-------+-------+------+--------+
|Sales revenue, mEUR                            |   56.2|   69.7|(13.5)|   (19)%|
+---------------------------------------------+-------+-------+------+--------+
|Renewable energy support and other income, mEUR|   12.7|    7.8|   4.9|     63%|
+---------------------------------------------+-------+-------+------+--------+
|EBITDA, mEUR                                   |   42.4|   41.1|   1.3|      3%|
+---------------------------------------------+-------+-------+------+--------+
|NET PROFIT, mEUR                               |   33.4|   30.5|   2.9|     10%|
+---------------------------------------------+-------+-------+------+--------+
|EPS, EUR                                       |   0.13|   0.12|  0.01|     10%|
+---------------------------------------------+-------+-------+------+--------+


Sales revenues and other operating income

The group's total electricity production grew by 89 GWh (+22%) to 494 GWh in Q1,
with electricity production at new wind and solar farms and wind and solar farms
under  construction increasing by  131 GWh. Nevertheless, electricity production
was  around 95 GWh  lower than  forecasted. This  was due  to weather conditions
(mainly  lower than expected  wind speeds) as  well as low  availability of wind
farms  under construction.  The negative  impacts to  production compared to the
projections were -42 GWh and -47 GWh respectively.

Total  operating income decreased by EUR8.6m,  the figure reflecting a decrease in
revenue  of  EUR13.5m  and  an  increase  in  renewable  energy  support and other
operating  income  of  EUR4.9m.  Operating  income  for  Q1  2023 includes  EUR20.0m
generated by assets sold in Q4 2023 and Q1 2024 EUR8.0m ('assets sold'). Excluding
the  impact of assets sold, the group's operating income was EUR57.5m for Q1 2023
and EUR60.9m for Q1 2024 and operating income grew by EUR3.4m, the figure reflecting
revenue growth of EUR4.1m and a decrease in other operating income of EUR0.7m.

Of  the EUR4.1m revenue growth, EUR4.9m resulted from electricity sales revenue that
was  driven by higher  production. In Q1  2024, the average electricity price in
the  group's core  markets was  EUR87.0 EUR/MWh  (Q1 2023: EUR100.5/MWh).  The group's
average  implied captured electricity price was EUR81.4/MWh (Q1 2023: EUR101.2/MWh).
The  implied captured electricity price differs from the average market price in
the  group's core markets,  because it takes  into account long-term fixed-price
power  purchase  agreements  (PPAs),  renewable  energy  support,  purchases  of
balancing  energy,  electricity  purchases  from  the  Nord  Pool  day-ahead and
intraday  markets and the fact that wind farms do not produce the same amount of
electricity every hour.

The  group's average  price of  electricity sold  to the  market in  Q1 2024 was
EUR77.6/MWh  compared with  EUR82.4/MWh a  year earlier.  The group  sold 292 GWh of
electricity to the market in Q1 2024 compared with 234 GWh a year earlier.

In  Q1 2024, 335 GWh of  the group's electricity  production was covered by PPAs
signed  at an average price of EUR75.0/MWh. A year earlier, 260 GWh of electricity
was  sold under  PPAs at  an average  price of  EUR89.8/MWh. The  average price of
electricity sold under PPAs has decreased significantly year on year because the
settlement  periods of  PPAs signed  in Lithuania  and Finland  in 2021 at lower
prices began in Q1 2024.

In  Q1 2024, we purchased 138 GWh  of electricity from the  market at an average
price  of EUR106.1/MWh, compared with 92 GWh at  an average price of EUR116.7/MWh in
Q1  2023 (the prices  and volumes  exclude the  electricity purchased for pellet
production  in Q1 2023). The  volume of electricity  purchased increased because
sales  under PPAs and the share of production covered by PPAs have increased and
therefore  the purchases needed to balance  the baseload PPA portfolio have also
increased.  The purchase price decreased compared  to Q1 2023 because the market
price  has declined, but  due to a  higher wind profile  discount the difference
between  the purchase price and the market price increased. In Lithuania, the Q1
wind profile discount increased by 3.3 percentage points year on year, rising to
15%. In  Estonia, the  wind profile  discount rose  by 0.4 percentage  points to
13.5%. In  2024, we started to supply electricity  under a PPA in Finland, which
is  why we also started to purchase electricity in Finland. In Finland, the wind
profile discount in Q1 2024 was 28.1%.

Renewable  energy support  and other  operating income  increased by  EUR4.9m. The
figure  reflects the gain on the sale of the Paide and Valka CHP plants of EUR5.4m
and  a decrease in  renewable energy support  of EUR0.8m. The  amount of renewable
energy  support received  is based  on the  quantity of  energy produced by wind
farms  eligible for  support, which  in Q1  2024 was 12.0 GWh  lower than a year
earlier.


EBITDA and segmental breakdown

The  factor with  the strongest  impact on  EBITDA development  was the price of
electricity  sold, which decreased compared to  Q1 2023 (impact: -EUR8.3m). Due to
PPAs,  the  quantity  of  electricity  sold grew considerably (impact: +EUR12.3m),
which  also  increased  the  volume  of  electricity  purchased  to  balance the
electricity portfolio (impact: -EUR4.7m). The combined effect of the above factors
on  EBITDA development  is influenced  by the  volume and profile of electricity
produced during the period. Electricity production grew by 22% year on year.

The impact of assets sold on EBITDA development was +EUR3.1m. The largest item was
the gain on the sale of the Paide and Valka CHP plants of EUR5.5m.

Excluding  the effects  of the  electricity price  and volume,  Iru cogeneration
plant  had a negative impact  on EBITDA. The calculation  takes into account the
effects of heat energy, gate fees for waste received and technological fuel. The
EBITDA  of the Iru  cogeneration plant decreased  because gate fees decreased by
EUR0.7m  due to a decline in the volume  of waste received and expenses on natural
gas  increased by  EUR0.3m due  an unplanned  production interruption  in February
during which replacement heat was produced from natural gas.

Fixed costs excluding the fixed costs of assets sold grew by EUR1.0m. The increase
was attributable to higher maintenance costs and IT expenses.

Based  on total operating income and EBITDA, the group's largest segment is wind
energy,  which accounted  for 73% of  operating income  and 76% of EBITDA for Q1
2024. The  cogeneration segment  contributed 25% to  operating income and 32% to
EBITDA. The smallest reportable segment is solar energy, which accounted for 1%
the group's operating income and 1% of the group's EBITDA for Q1 2024.

EBITDA  of all reported segments increased  compared to the reference period (by
EUR1.2m,  EUR0.6m and  EUR0.1m for  the wind,  cogeneration and  solar energy segments
respectively).  The change of EBITDA of  the cogeneration segment was positively
affected by assets sold (+EUR3.1m) and negatively by Iru power plant (-EUR2.5m).


Net profit

The group's net profit increased by EUR2.9m to EUR33.4m in the reporting period. The
growth  in net  profit was  supported by  an increase  in EBITDA,  a decrease in
depreciation  of  EUR0.5  million  (increase  of  depreciation  stemming  from new
operating  assets, decrease of depreciation due  to assets sold), an increase in
net financial income by EUR0.2m and a decrease in income tax expense by EUR0.9m.


Capital Expenditures

The  group invested EUR104.8m in  Q1 2024, which is EUR12.9m  more than in Q1 2023.
Growth  resulted  from  development  investments,  which extended to EUR104.7m. Of
this, EUR77.6m was invested in the construction of three wind farms: EUR64.8m in the
Sopi-Tootsi wind farm and EUR12.9m in the Kelme wind farms - EUR10.4m in Kelme I and
EUR2.5  in Kelme II. The  largest solar energy development  investment was made in
the Sopi solar project in the amount of EUR17.6m.

Base investments remained on a negligible level of EUR0.1m.


Financing

At 31 March 2024, the amortised cost of the group's interest-bearing liabilities
was EUR503.2m (31 December 2023: EUR482.4m). In Q1 2024, the group drew down bank
loans of EUR30m and the level of investment loans raised but not drawn down at 31
March 2024 amounted to EUR285m. The average interest rate of bank loans drawn down
at 31 March 2024 was 3.79% (31 December 2023: 3.75%). Net debt/EBITDA ratio
stood at a level of 4.39 (31 December 2023: 3.97). The ratio's increase is
corresponding to the expectation due to the large number of development projects
under construction.


Condensed consolidated interim income statement

-------------------------------------------------------------------------------
 EUR thousand                                                    Q1 2024  Q1 2023
-------------------------------------------------------------------------------
 Revenue                                                        56,192   69,691

 Renewable energy support and other operating income            12,729    7,813

 Change in inventories of finished goods and work in progress        0  (5,060)

 Raw materials, consumables and services used                 (20,674) (24,792)

 Payroll expenses                                              (2,225)  (2,486)

 Depreciation, amortisation and impairment                     (9,342)  (9,815)

 Other operating expenses                                      (3,595)  (4,055)

 OPERATING PROFIT                                               33,085   31,296

 Finance income                                                    570      407

 Finance costs                                                   (306)    (380)

 Net finance income and costs                                      264       27

 Profit (loss) from associates under the equity method            (10)       19

 PROFIT BEFORE TAX                                              33,339   31,342

 Income tax income (expense)                                       107    (820)

 PROFIT FOR THE PERIOD                                          33,446   30,522



 Basic and diluted earnings per share

 Weighted average number of shares, thousand                   264,276  264,276

 Basic earnings per share, EUR                                      0.13     0.12

 Diluted earnings per share, EUR                                    0.13     0.12


Condensed consolidated interim statement of financial position

---------------------------------------------------------------------------
 EUR thousand                                  31 March 2024 31 December 2023
---------------------------------------------------------------------------
 ASSETS

 Non-current assets

 Property, plant and equipment                   1,123,597        1,027,057

 Intangible assets                                  59,857           59,891

 Right-of-use assets                                 8,764            9,097

 Prepayments for non-current assets                 54,240           55,148

 Deferred tax assets                                 2,095            2,013

 Investments in associates                             538              548

 Derivative financial instruments                    5,169            5,054

 Non-current receivables                             1,826                0

 Total non-current assets                        1,256,086        1,158,808



 Current assets

 Inventories                                         3,402            3,180

 Trade and other receivables and prepayments        40,930           55,082

 Derivative financial instruments                    3,720            3,806

 Cash and cash equivalents                          34,989           65,677

                                                    83,041          127,745

 Assets classified as held for sale                      0           15,370
---------------------------------------------------------------------------
 Total current assets                               83,041          143,115
---------------------------------------------------------------------------
 Total assets                                    1,339,127        1,301,923
---------------------------------------------------------------------------


-------------------------------------------------------------------------------
 EUR thousand                                      31 March 2024 31 December 2023
-------------------------------------------------------------------------------
 EQUITY

 Equity and reserves attributable to
 shareholders of the parent

 Share capital                                         264,276          264,276

 Share premium                                          60,351           60,351

 Statutory capital reserve                               5,556            5,556

 Other reserves                                        164,566          163,451

 Foreign currency translation reserve                    (108)            (162)

 Retained earnings                                     257,163          223,718

 Total equity                                          751,804          717,190

 LIABILITIES

 Non-current liabilities

 Borrowings                                            437,916          454,272

 Government grants                                       3,054            3,102

 Non-derivative contract liability                      12,471           12,497

 Deferred tax liabilities                               12,412           12,412

 Other non-current liabilities                           5,239            5,239

 Provisions                                                  8                8

 Total non-current liabilities                         471,100          487,530

 Current liabilities

 Borrowings                                             67,685           32,126

 Trade and other payables                               44,870           54,445

 Provisions                                                  6                6

 Non-derivative contract liability                       3,662            5,674

                                                       116,223           92,251

 Liabilities directly associated with assets
 classified as held for sale                                 0            4,952

 Total current liabilities                             116,223           97,203

 Total liabilities                                     587,323          584,733

 Total equity and liabilities                        1,339,127        1,301,923
-------------------------------------------------------------------------------


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/
(https://www.globenewswire.com/Tracker?data=2hvtWZj2Sah7P5FHBmegLeIoMx1_pu7PK9v_
TsWBkf9HVGRVBco0gBWNAR8sTIf_RfHfPw1v74a_H6m3SjVkIBzGyIVVbjGOe57EOq9-
agKg8ttz2h5EHYmF0la-hs-rAYHvQm2Fvlu3QknP8tcDCA==)

Enefit Green is one of the leading renewable energy producers in the Baltic Sea
area. The Company operates wind farms in Estonia and Lithuania, waste-to-energy
CHP plant in Estonia, solar farms in Estonia and Poland and a hydroelectric
plant in Estonia. In addition, the Company is developing several wind and solar
farms in the mentioned countries, Latvia and Finland. As of the end of 2023, the
Company had a total installed electricity production capacity of 515 MW and a
total installed heat production capacity of 50 MW. During 2023, the Company
produced 1,343 GWh of electricity, 604 GWh of heat energy and 156 thousand
tonnes of wood pellets. In the end of 2023, Enefit Green exited the biomass
based CHP and pellet production businesses.