Market announcement

Title

Enefit Green financial results for Q3 2021

Message

In  Q3 2021, Enefit Green group total  revenues increased by 32% y-o-y to EUR36.4m
and  EBITDA was up by 66% y-o-y at  EUR25.5m. During the quarter, the group earned
net profit of EUR15.3m, which is 270% more than in third quarter of 2020.

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

"The  financial results of Enefit Green  in the latest quarter were outstanding.
The  results were  driven by  solid electricity  and heat generation volumes and
considerable  increase in power prices.  Quarterly average Nord Pool electricity
price  in the Baltic region reached almost EUR100/MWh, which is approximately 2.6
times higher than in Q3 2020.

During  the quarter we  made good progress  with the wind  and solar development
projects.  In September,  we took  the final  investment decision to build 75 MW
Akmene  wind farm in Lithuania. We also reached construction readiness with 8 MW
Zambrow  solar park in  Poland. We have  set ourselves a  target to increase our
installed  capacity in electricity production by 2.3 times to 1.1 GW by 2025. To
achieve  this target, Enefit Green expects to invest around EUR600m in 2021-23. We
raised  nearly EUR100m via the recent IPO  and signed new loan agreements with SEB
and OP banks worth EUR130m to finance these investments."


Webinar to present the results of Q3 2021

Today, November 5, 2021 at 14.00 EET Enefit Green will host a Webinar in English
to  present and discuss  its Q3 2021 results.  To participate, we  kindly ask to
register  your  participation  before  the  start  of the event by clicking here
(https://www.globenewswire.com/Tracker?data=7lz8gbKXELxmjqh6-
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_OLPGjIHBkoClRmgIEX9DSrCWkhPcWSHucK4RorqrDbuxky-yzimoYebiLoLvs4VN-
f70ZRtfid2YEdShdiUBCuKW0iukaxQ61ZQRxf7pDg3F6u1aKho4nCoxyqw1SZguQ_NMtHdR_W-
I42Um4PtNRn1usw-zspJdYSz2GJbqalRnWMMo=).


Significant events during Q3 2021

  * Investment decision to build a 75 MW wind farm in Akmene (Lithuania)
  * Investment decision to build a 8 MW solar farm in Zambrow (Poland)
  * Acquisition of two wind power development projects (120 MW in total): Kelme
    II and III (Lithuania)
  * New loan agreements with SEB and OP Bank
  * Preparations for the IPO


Key figures

                                        Q3 2020     Q3 2021   Change   Change %

 PRODUCTION VOLUMES

     Electricity, GWh                         247       250        3       1.4%

     Heat, GWh                                 61       123       62       102%

     Pellets, t                                37        37        0         0%



 TOTAL REVENUES, mEUR                          27.6      36.4      8.8        32%

     Sales revenue, mEUR                       21.5      30.1      8.7        40%

     Renewable energy support and other
 income, mEUR                                   6.2       6.3      0.1         2%

 EBITDA, mEUR                                  15.4      25.5     10.1        66%

 NET PROFIT, mEUR                               4.1      15.3     11.1       270%

 EPS, EUR (post-IPO number of shares)          0.02      0.06     0.04       270%


Sales revenue and other operating income

Group's  total revenues  increased by  32% y-o-y to  EUR36.4m in  Q3 2021. Group's
electricity  production in Q3 2021 was  250 GWh, increasing slightly in contrast
to  the comparative  period .  However, the  implied captured  electricity price
(including  various subsidies) received by the group across markets increased to
EUR116/MWh in Q3 2021, compared with 78 EUR/MWh in Q3 2020.

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 EUR9.5m. The average price in the NP Estonia price area
was  EUR97.5/MWh in  Q3 2021, compared  with EUR36.8/MWh  in Q3 2020. The calculated
sales prices of the group's production entities that are exposed to fluctuations
in  the NP  Estonia electricity  price were  EUR94.6/MWh and  EUR32.8/MWh in the two
periods.

Another  major factor was pellet sales, which fell by EUR3.0m in Q3 2021, dropping
from  26 thousand tonnes in  the comparative period  to 4 thousand tonnes in the
reporting  period. Sales for Q3  2021 were low because in  the first half of the
year  market  activity  was  high  and  our  H1 sales grew to a record-high 115
thousand tonnes.

Heat  generation increased by 102% y- o-y mainly  on the back of additional heat
sales  from  Enefit  Green´s  Iru  waste-to-energy  (WTE) facility. Although the
average  price  fell  by  45% due  to  reduction of regulated heat price, output
growth increased heat sales revenue by EUR0.3m.

The  most significant contributor to other operating income was renewable energy
and  efficient  cogeneration  support  received  by  the Iru WTE facility, which
increased  by EUR0.7m y-o-y. The rise is attributable to a contract amendment that
took  effect in February  2021, enabling the plant  to produce heat in efficient
cogeneration regime and thus to receive relevant support all the year round.

The  renewable energy support received by Estonian wind farms decreased by EUR0.3m
y-o-y  because the 12-year 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 66% y-o-y to EUR25.5m in Q3 2021 driven mostly by the
elevated  Estonian electricity prices. In addition, reduced pellet sales revenue
did  not impact EBITDA by same magnitude, as increased production into inventory
resulted in reduced operating expenses by EUR2.6m compared to Q3 2020. Group fixed
expenses increased by 4% or EUR0.3m mainly on the back of the expanded development
team.

Based on total revenues and EBITDA for the reporting period, the group's largest
segment  is  the  Wind  energy  segment  (with  66% of total revenues and 73% of
EBITDA).  The Cogeneration segment contributed  30% to total revenues and 28% to
EBITDA.  The smallest reportable  segment was Solar  energy, which accounted for
4% of  the group's total revenues and 3% of the group's EBITDA. Among reportable
segments,  Wind and  the Cogeneration  delivered the  strongest EBITDA growth as
they  benefited the most from higher electricity prices, which contributed EUR9.5m
to total revenue.


Net profit

The  group's net profit increased almost fourfold compared to Q3 2020, amounting
to  EUR15.3m for the reporting period. The most significant contribution came from
high  market prices of electricity, but  additional positive impact was realised
from reduced depreciation expenses and lower interest expenses.


Capital Expenditures

The  group's capital  expenditures in  Q3 2021 totalled  EUR8.1m, EUR4.2m  up on the
comparative   period.  Growth  resulted  from  development  expenditures,  which
amounted  to EUR7.9m. Out  of the latter,   EUR7.7m was spent  on the development of
wind  farms under construction:  the second instalment payment of EUR1.6 m for the
Shilale  II wind  farm and  the first  instalment payment  of EUR6.2m  for the wind
turbines of the Akmene wind farm. Expenditure on the improvement and maintenance
of  existing assets was EUR0.2m compared with  EUR0.6m in the comparative period and
was mainly related to the maintenance of cogeneration facilities.


Condensed consolidated interim income statement


 in thousand euros                         Q3 2021  Q3 2020    9m 2021  9m 2020

 Revenue                                    30,133   21,456     93,655   78,015

 Renewable energy support and other
 income                                      6,257    6,159     21,143   40,700

 Change in inventories of finished
 goods and work-in-progress                  3,702    1,066    (2,240)    3,617

 Raw materials, consumables and
 services used                            (11,097) (10,406)   (30,189) (30,167)

 Payroll expenses                          (1,626)  (1,433)    (4,932)  (4,446)

 Depreciation, amortisation and
 impairment                                (9,467) (10,595)   (28,592) (28,932)

 Other operating expenses                  (1,867)  (1,459)    (5,549)  (5,490)



 OPERATING PROFIT                           16,037    4,788     43,296   53,297

 Finance income                                  1     (45)        145      (7)

 Finance costs                               (516)    (723)    (2,091)  (2,579)

 Net finance costs                           (515)    (768)    (1,946)  (2,585)



 Profit (loss) from associates under
 the equity method                              46       36         10     (15)



 PROFIT BEFORE TAX                          15,567    4,057     41,360   50,697

 Corporate Income Tax Expense                (308)       68    (1,069)      903



 PROFIT FOR THE PERIOD                      15,259    4,125     40,291   51,600


Condensed consolidated interim statement of financial position

 in thousand euros                          30 Sep 2021 30 Sep 2020 31 Dec 2020

 ASSETS

 Non-current assets

 Property, plant and equipment                  606,178     598,718     594,980

 Intangible assets                               68,281      63,023      67,839

 Right-of-use assets                              2,098       2,264       2,222

 Prepayments                                     11,831       2,062           -

 Deferred tax assets                                393       1,185         344

 Investments in associates                          474         512         532

 Long-term receivables                               78         103         103

 Total non-current assets                       689,333     667,867     666,020



 Current assets

 Inventories                                     11,042      11,099      11,086

 Trade and other receivables and
 prepayments                                     16,660      15,985      51,565

 Cash and cash equivalents                       14,135      32,876      10,774

 Total current assets                            41,837      59,960      73,425

 Total assets                                   731,170     727,827     739,445



 in thousand euros                          30 Sep 2021 30 Sep 2020 31 Dec 2020

 EQUITY

 Equity and reserves attributable to
 equity holder of the parent

 Share capital                                  229,793       4,794       4,794

 Statutory reserve capital                          479         479         479

 Other reserves                                 150,771     399,210     399,165

 Retained earnings                              118,302      88,841     105,111

 Total equity                                   499,346     493,324     509,549



 LIABILITIES

 Non-current liabilities

 Borrowings                                     135,016     168,889     161,558

 Goverment grants                                 7,620       8,159       8,020

 Derivative financial instruments                23,207           -           -

 Deferred tax liabilities                        12,469      11,724      12,555

 Provisions                                          11          13          13

 Total non-current liabilities                  178,324     188,785     182,146

 Current liabilities

 Borrowings                                      43,009      37,193      37,778

 Trade and other payables                        10,376       8,435       9,858

 Provisions                                         115          90         114

 Total current liabilities                       53,499      45,718      47,750

 Total liabilities                              231,823     234,503     229,896

 Total equity and liabilities                   731,170     727,827     739,445


Further information:
Sven Kunsing
Head of Finance Communications
[email protected]
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https://enefitgreen.ee/en/investorile/
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Enefit Green is one of the leading diversified renewable energy producers in the
Baltic  sea  area.  The  Company  owns  22 wind farms, 38 solar power plants, 4
cogeneration  plants,  a  pellet  plant  and  a  hydroelectric  plant located in
Estonia, Latvia, Lithuania and Poland. As of 30 June 2021, the Group had a total
installed electricity production capacity of 456.4 MW and a total installed heat
production  capacity of 81.2 MW.  During 2020, the Company  produced 1350 GWh of
electricity and 543 GWh of heat.