Market announcement

Title

Enefit Green interim report for Q3 2022

Message

In  Q3 2022, Enefit Green group total  revenues increased by 66% y-o-y to EUR60.3m
and  EBITDA was up by 28% y-o-y at  EUR32.7m. During the quarter, the group earned
net profit of EUR22.9m (EUR0.09 per share), which is 50% more than in Q3 2021.


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

"Enefit Green will continue on a rapid growth course, because the only long-term
solution to the energy crisis is a sufficient amount of renewable energy.
Therefore, Enefit Green strives to reach additional investment decisions for
more than 300 megawatts of new capacities before the end of this year.

In the third quarter, we invested nearly 80 million euros in renewable energy
developments. We are building a total of seven new wind and solar farms in
Estonia, Lithuania, Poland and Finland. With these assets we will add 258
megawatts of production capacity to our home electricity markets in 2023, which
will produce more than 700 gigawatt-hours of electricity annually. This amount
covers the annual electricity consumption of more than 200 000 households.

During the quarter, Enefit Green's solar energy development portfolio in Estonia
grew by 200 megawatts. For the first 35 megawatts, we want to reach an
investment decision already in the second half of next year.

The production results of the quarter were most affected by the exceptionally
low wind conditions and the thorough repairs carried out at the Iru CHP plant
before the winter heating season. We also focused on the maintenance of wind
turbines to assure availability during upcoming peak season of wind energy
production."


Webinar to present the results of Q3 2022

Today,  on 3 November  2022 at 13.00 EEST  Enefit Green  will host  a Webinar in
English  to  present  and  discuss  its  Q3 2022 results. To participate, please
follow          this         link         (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MDkyOTYxNjItMzUyMC00MDNmLTk5NzYtNzA2Y2UxYWJkZTM5%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

  * Cornerstones laid in four wind farm
  * Solar farm developments with up to 200MW capacity acquired
  * Signed new long term PPAs in Lithuania and Estonia with a total volume of
    3.1TWh
  * Litigation regarding Purtse wind farm
  * Iru power station repair stoppage


Key figures

                                                Q3 2022 Q3 2021 Change Change %

 PRODUCTION VOLUMES

     Electricity, GWh                               189     250   (61)    (24)%

     Heat, GWh                                       84     123   (39)    (32)%

     Pellets, th t                                   39      37      2       6%



 TOTAL REVENUES, mEUR                                60.3    36.4   23.9      66%

     Sales revenue, mEUR                             57.3    30.1   27.1      90%

     Renewable energy support and other income,
 mEUR                                                 3.0     6.3  (3.2)    (52)%

 EBITDA, mEUR                                        32.7    25.5    7.2      28%

 NET PROFIT, mEUR                                    22.9    15.3    7.7      50%

 EPS, EUR (post-IPO number of shares)                0.09    0.06   0.03      50%


Sales revenue and other operating income

The  group's  electricity  production  in  Q3  2022 was  189 GWh (a 24% decrease
compared  with  250 GWh  in  Q3  2021). The  group's  average  implied  captured
electricity price including support was 205.1 EUR/MWh (Q3 2021: 115.8 EUR/MWh).

The  most  important  revenue  driver  was  growth  in electricity prices in the
Estonia  price area of  the Nord Pool  (NP) power exchange,  which increased the
group's revenue by around EUR14.5m. The implied captured electricity prices of the
group's  Estonian production entities in the respective periods were 275.1 EUR/MWh
and  133.2 EUR/MWh.  The  Q3  implied  captured  electricity prices of the group's
Latvian  and Lithuanian  production entities  were 362.1 EUR/MWh  (Q3 2021: 129.7
EUR/MWh)  and 87.6 EUR/MWh  (Q3 2021: 79.2 EUR/MWh),  respectively. On  the Lithuanian
market,  during the third quarter we fully abandoned the previous revenue model,
which  was  based  on  the  national  renewable energy support scheme with fixed
electricity  tariffs and  replaced it  with a  combination of  market prices and
long-term PPAs.

Another  factor that strongly  affected revenue development  was the quantity of
electricity  produced  in  Estonia,  which  decreased  year  on year due to less
favourable wind conditions and a five-week outage at the Iru CHP.

Revenue  growth was also supported by pellet sales, which grew by EUR6.7m as sales
volume  increased from 4k tonnes in Q3  2021 to 39k tonnes in Q3 2022. The sharp
rise  is  attributable  to  differences  in  the timing of major pellet supplies
during the reporting and the comparative period.

Heat  energy production decreased by 32%, mainly  due to an unplanned production
interruption  at the Iru CHP, while the price of heat sold increased by 23% year
on year.

Renewable  energy support and other income for Q3 2022 were strongly affected by
a decrease in the renewable energy support received by the group's Estonian wind
farms,  which dropped by EUR2.0m year on  year. Renewable energy support is linked
to  the  quantity  of  energy  produced  and  since  quantity decreased, support
received  also declined.  The renewable  energy support  received by the Iru CHP
decreased by EUR0.5m year on year due to its five-week outage.

Renewable energy support received by the Polish wind farms dropped by EUR0.9m year
on  year. Due to  high market prices,  revenue generated exceeded the guaranteed
price  and consistent with local  laws in such a  situation the positive balance
has to be repaid to the Polish state.


EBITDA and segmental breakdown

Group's  EBITDA increased by 28% y-o-y to EUR32.7m in Q3 2022 driven mostly by the
elevated  electricity  prices  and  differences  in  the  timing of major pellet
supplies.  Increased variable costs, lower volume  of wind energy production and
to  a lesser extent  the increase in  fixed costs and  the unplanned maintenance
stoppage at Iru had a negative impact on the EBITDA.

Variable  costs have  increased by  EUR6.2m, which  is largely driven by increased
purchasing  prices  of  biomass  and  electricity.  In  addition, variable costs
increased in connection with the sale of inventories in the Solar energy segment
due to the exit from the provision of turnkey solar solutions.

Group's fixed expenses increased by 15% or EUR1.2m driven by payroll, research and
consulting expenses.

Based  on total revenues and EBITDA for  Q3 2022, the group's largest segment is
Wind  energy which  accounted for  53% of total  revenues and 72% of EBITDA. The
Cogeneration  segment contributed 34% to  total revenues and  29% to EBITDA. The
smallest  reportable segment is  Solar energy, which  accounted for 12% of total
revenues and 5% of EBITDA.

Among  reportable segments,  the strongest  EBITDA growth  was delivered by Wind
energy  and Cogeneration as they benefited the most from higher market prices of
electricity.


Net profit

The  group's net profit  increased 50% compared to  Q3 2021, amounting to EUR22.9m
for  the reporting period. The most  significant positive contribution came from
high  market prices of electricity,  to some extent also  from lower net finance
costs and corporate income tax expense.


Capital Expenditures

The  group's Q3  capital expenditures  grew by  EUR71.6m year  on year,  rising to
EUR79.7m.  Growth resulted from development investments, which extended to EUR78.9m.
Out  of the total, EUR33.5m was invested  in the construction of three wind farms:
EUR19.2m in the Shilale 2 wind farm, EUR8.7m in the Akmene wind farm and EUR5.6m in the
Tolpanvaara  wind farm. In addition, Enefit  Green acquired the Tootsi wind farm
development  from Eesti  Energia for  EUR26.9m. The  largest expenditures on solar
power  were investments of EUR2.7m in the execution phase of the Purtse solar farm
and  EUR2.9m in  the Zambrow  solar farm.  Additionally, Enefit  Green AS acquired
Rääbiste  Põllud OÜ (which  has been renamed  Enefit Green Solar  OÜ) for EUR6.6m,
which  is developing two large solar  farms in Western Estonia. Base investments
amounted  to EUR0.9m in Q3  2022 compared with EUR0.2m in  the same period last year
and  were mainly  made in  the cogeneration  plants to ensure their availability
during the upcoming heating period.


Condensed consolidated interim income statement

 EUR thousand                               Q3 2022  Q3 2021    9M  2022 9M  2021

 Revenue                                    57,254   30,133    156,900   93,655

 Renewable energy support and other
 income                                      3,011    6,257     17,363   21,143

 Change in inventories of finished goods
 and work in progress                        2,028     3702      4,607  (2,240)

 Raw materials, consumables and services
 used                                     (24,969) (11,097)   (55,468) (30,189)

 Payroll expenses                          (2,029) (1,626))    (6,641)  (4,932)

 Depreciation, amortisation and
 impairment                                (9,637)  (9,467)   (28,930) (28,592)

 Other operating expenses                  (2,574) (1,867))    (7,721)  (5,549)

 OPERATING PROFIT                           23,084   16,037     80,110   43,296

 Finance income                                817        1      1,703      145

 Finance costs                             (1,072)    (516)    (2,261)  (2,091)

 Net finance costs                           (255)    (515)      (558)  (1,946)

 Profit (loss) from associates under the
 equity method                                 120       46        687       10

 PROFIT BEFORE TAX                          22,949   15 567     80,239   41,360

 Corporate income tax expense                   -     (308)    (5,441)  (1,069)

 PROFIT FOR THE PERIOD                      22,949   15,259     74,798   40,291



 Basic and diluted earnings per share

 Weighted   average   number  of  shares,
 thousand                                  264,276   78,163    264,276   29,519

 Basic earnings per share, EUR                  0.09     0.20       0.28     1.36

 Diluted earnings per share, EUR                0.09     0.20       0.28     1.36



 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                  0.09     0.06       0.28     0.15


Condensed consolidated interim statement of financial position

  EUR thousand                                    30 Sep 2022   31 Dec 2021

  ASSETS

  Non-current assets

  Property, plant and equipment                     714,715       612,503

  Intangible assets                                  72,550        68,239

  Right-of-use assets                                 4,225         2,750

  Prepayments                                        18,798        20,710

  Deferred tax assets                                   734           442

  Investments in associates                             479           578

  Derivative financial instruments                   11,519             -

  Long-term receivables                                  40            78

  Total non-current assets                          823,060       705,300



  Current assets

  Inventories                                        15,343         9,529

  Trade and other receivables and prepayments        22,250        22,373

  Cash and cash equivalents                         163,711        80,454

  Derivative financial instruments                    2,198             -

  Total current assets                              203,502       112,356

  Total assets                                    1,026,562       817,656


 EUR thousand                                             30 Sep 2022 31 Dec 2021

 EQUITY

 Equity and reserves attributable to equity holders of
 the parent

 Share capital                                              264,276     264,276

 Share premium                                               60,351      60,351

 Statutory capital reserve                                    3,259         479

 Other reserves                                             165,510     151,793

 Foreign currency translation reserve                       (1,645)       (965)

 Retained earnings                                          189,785     157,673

 Total equity                                               681,536     633,607



 LIABILITIES

 Non-current liabilities

 Borrowings                                                 249,716      93,884

 Government grants                                            7,209       7,458

 Non-derivative contract liability                           23,207      23,207

 Deferred tax liabilities                                    12,355      12,568

 Other non-current liabilities                                3,000       3,000

 Provisions                                                      11          13

 Total non-current liabilities                              295,498     140,130

 Current liabilities

 Borrowings                                                  29,733      29,572

 Trade and other payables                                    19,769      14,291

 Provisions                                                      26          56

 Derivative financial instruments                                -           -

 Total current liabilities                                   49,528      43,919

 Total liabilities                                          345,026     184,049

 Total equity and liabilities                             1,026,562     817,656


Further information:
Sven Kunsing
Head of Finance Communications
[email protected]
(https://www.globenewswire.com/Tracker?data=eahglFI0K4UUxwsmqXkQdO3N_ld1uojlGTE_
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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 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.