Market announcement

Title

Enefit Green interim report for Q2 2022

Message

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
[email protected]
(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.