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Enefit Green interim report for Q1 2023

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In Q1 2023, Enefit Green group operating income increased by 16% y-o-y to
EUR77.5m, but growth in operating expenses drove EBITDA down by 10% y-o-y to
EUR41.1m. During the quarter, the group earned net profit of EUR30.5m (EUR0.12 per
share), which is 13% lower than in Q1 2022.

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

"The beginning of the year has brought relief to prices that have remained
exceptionally high. Market prices have been affected by the warm winter, high
wind and hydro production and sufficient European natural gas reserves pushing
down gas prices.

Enefit Green has a clear road map to quadruple the production capacity on its
core markets in the coming years. We invested nearly 92 million euros in the
first quarter and continued our development work to increase the production of
renewable electricity.

Thanks to the good work of the team and partners, we stayed on schedule with the
construction works. The production volume and share of green energy in the
Baltic Sea region will increase significantly by the end of the decade, and the
development of offshore wind energy will be a determining force in this. We have
acquired the development project of the Liivi offshore wind farm from Eesti
Energia and we will continue the development work to start large-scale renewable
electricity production before 2030.

We produced more electricity in the quarter than a year earlier. Good wind
conditions, high reliability of production units and production from new wind
farms under construction helped to achieve this. Despite higher production
results, EBITDA and net profit decreased, mainly due to lower market prices for
electricity and electricity purchase costs to balance the portfolio of long-term
electricity contracts (PPAs)."

Webinar to present the results of Q1 2023

Today,  on May 5, 2023 at 13.00 EEST Enefit Green will host a webinar in English
to  present and discuss its Q1  2023 results. To participate, please follow this
link                                      (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_OTVmNWYzZmItOGQ1OC00MTBiLTk0ZWUtODI1YjIyODUwMWI0%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

  * Acquisition of Liivi (Gulf of Riga) off shore wind farm project
  * Significant production contribution from wind farms under construction
  * We are exploring strategic alternatives for biomass assets belonging to the
    group

Key figures

                                               Q1 2023 Q1 2022 Change Change %

 PRODUCTION AND SALES VOLUMES

 Electricity production, GWh                       406     368     38      10%

 incl. new wind farms                               38       0     38        -

 Electricity sales                                 495     393    102      26%

 Heat energy production, GWh                       176     173      3       2%

 Pellet production, th t                            39      38      1       2%

 Pellet sales, th t                                 62      55      7      13%



 OPERATING INCOME, mEUR                             77.5    66.7   10.8      16%

 Sales revenue, mEUR                                68.8    58.1   10.6      18%

 Renewable energy support and other income, mEUR     8.7     8.6    0.1       2%

 EBITDA, mEUR                                       41.1    45.6  (4.5)    (10)%

 NET PROFIT, mEUR                                   30.5    34.9  (4.4)    (13)%

 EPS, EUR                                           0.12    0.13 (0.01)    (13)%



Sales revenues and other operating income

The  group's electricity  production in  the first  quarter of  2023 was 406 GWh
(+10% in the reference period).

Total  operating income increased by EUR10.8m,  of which sales revenue contributed
EUR10.6m  and renewable  energy support  and other  operating income EUR0.1m. Of the
EUR10.6m  increase in sales revenue,  EUR7.5m derived from the  sale of pellets. The
average  sales price of pellets increased by  69% y-o-y. In the first quarter of
2022, the  price was 149.3 EUR/tonne,  in the first  quarter of 2023 it was 252.7
EUR/tonne.  In the first quarter,  62k tonnes of pellets were  sold (55k tonnes in
reference  period). First quarter pellet sales were affected by the timing shift
from Q4 2022 to 1Q 2023.

From  the increase in sales revenue EUR2.4m was attributable to electricity sales.
The  growth in electricity sales was most positively influenced by the amount of
electricity  produced in Lithuania, which  increased by 27% y-o-y. In Lithuania,
two  wind  farms  under  construction,  Akmene  and Shilale II, started producing
electricity in Q1 2023.

Lower  market prices for electricity had a negative impact compared to the first
quarter  of last year. The production  volume weighted average electricity price
on the group's core markets was 100.5 EUR/MWh in the first quarter (136.4 EUR/MWh in
the reference period). The group's implied captured electricity price was 101.4
EUR/MWh in the reporting period (127.3 EUR/MWh in the reference period). The implied
captured  electricity price  differs from  the average  market price in the core
markets,  as  the  calculation  takes  into  account long-term electricity sales
contracts  (PPAs) at a fixed price, renewable energy subsidies and the fact that
wind  farms do not produce the same amount of electricity every hour. The latter
circumstance  leads to a necessity to  cover any short-term production shortages
with  purchases of electricity on the day-ahead market. In Q1 2023, we purchased
from  the market 92 GWh of electricity at an average price of 116.7 EUR/MWh. In Q1
2022, we  purchased 29 GWh at  an average price  128.1 EUR/MWh (the figures do not
include  the electricity purchased for pellet production). Electricity purchases
from the market in Q1 2022 were significantly smaller because part of the output
was  covered by a fixed-price FiT support scheme and the volume of PPAs was very
small.

Heat  production remained stable compared  with a year earlier  but the price of
heat sold grew by 38% due to growth in the price of biomass.

Other  operating  income  for  Q1  2023 was  affected  the most by the change in
renewable  energy support received by Estonian wind farms, which decreased EUR1.1m
year  on year. The eligibility  periods of the Tooma  I, Vanaküla and Virtsu III
wind  farms expired in 2022. Other operating income was positively influenced by
the  decrease in the non-derivative contract liability incurred in 2021 by EUR0.9m
in connection with the partial fulfilment of relevant PPAs.

EBITDA and segmental breakdown

Group's  EBITDA decreased by 10% y-o-y to EUR41.1m in Q1 2023 driven negatively by
the  lower electricity prices and increased costs for purchased electricity. The
main  positive EBITDA driver was growth  in electricity production volume, which
in turn was driven by production from new wind farms under construction and good
availabilities achieved.

The  key word  during the  quarter was  growth in  variable expenses  which were
driven by growth in purchased electricity costs by EUR6.8m.

Group's  fixed  expenses  increased  by  22% or  EUR1.7m  driven  by  research and
consulting expenses related to development activities.

Based on operating income and EBITDA for Q1 2023, the group's largest segment is
Wind  energy which accounted for 58% of  operating income and 75% of EBITDA. The
Cogeneration  segment contributed 41% to operating income and 31% to EBITDA. The
smallest reportable segment is Solar energy, which accounted for 1% of operating
income and -1% of EBITDA.

Among reportable segments, EBITDA of the Cogeneration segment increased somewhat
(by EUR0.6m or 4.8%) and EBITDA from the Wind segment decreased the most (by EUR3.9m
or  11.2%). A  more  detailed  segmental  analysis  is  provided in the attached
report.

Net profit

The  group's net  profit decreased  by EUR4.4m  y-o-y amounting  to EUR30.5m for the
reporting period. The decrease is attributable to growth in electricity purchase
expenses.

Capital Expenditures

The  group made capital investments  of EUR91.9m in Q1  2023, which is EUR78.2m more
than in Q1 2022. Growth resulted from development investments, which extended to
EUR91.9m.  Of the  latter, EUR59.6m  was invested  in the  development of three wind
farms:  EUR32.4m in  the Sopi-Tootsi  wind farm,  EUR17.2m in  the Kelme  wind farm,
EUR10.1m in the Purtse wind farm and EUR6.2m in the acquisition of the Liivi/Gulf of
Riga  offshore wind farm development from  Eesti Energia. The largest investment
in  solar power development was  made in the Purtse  solar farm in the amount of
EUR10.9m.

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



Condensed consolidated interim income statement

 EUR thousand                                                    Q1 2023  Q1 2022

 Revenue                                                        68,785   58,141

 Renewable energy support and other operating income             8,719    8,579

 Change in inventories of finished goods and work in progress  (5,060)  (2,067)

 Raw materials, consumables and services used                 (24,792) (14,134)

 Payroll expenses                                              (2,486)  (2,443)

 Depreciation, amortisation and impairment                     (9,815)  (9,648)

 Other operating expenses                                      (4,055)  (2,504)

 OPERATING PROFIT                                               31,296   35,924

 Finance income                                                    407      170

 Finance costs                                                   (380)    (325)

 Net finance income (costs)                                         27    (155)

 Profit from associates under the equity method                     19        4

 PROFIT BEFORE TAX                                              31,342   35,773

 Income tax expense                                              (820)    (849)

 PROFIT FOR THE PERIOD                                          30,522   34,924



 Basic and diluted earnings per share

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

 Basic earnings per share, EUR                                      0.12     0.13

 Diluted earnings per share, EUR                                    0.12     0.13



Condensed consolidated interim statement of financial position

  EUR thousand                                      31 Mar 2023   31 Dec 2022

  ASSETS

  Non-current assets

  Property, plant and equipment                       843,998       776,870

  Intangible assets                                    60,342        60,382

  Right-of-use assets                                   4,528         4,239

  Prepayments for property, plant and equipment        34,538        19,412

  Deferred tax assets                                   1,344         1,321

  Investments in associates                               524           506

  Derivative financial instruments                      9,206        11,277

  Non-current receivables                                  40            40

  Total non-current assets                            954,520       874,047



  Current assets

  Inventories                                           8,628        14,227

  Trade and other receivables and prepayments          46,777        41,091

  Cash and cash equivalents                            80,509       131,456

  Derivative financial instruments                      3,871         3,349

  Total current assets                                139,785       190,123

  Total assets                                      1,094,305     1,064,170



 EUR thousand                                             31 Mar 2023 31 Dec 2022

 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                                    3,259       3,259

 Other reserves                                             165,730     166,419

 Foreign currency translation reserve                         (797)       (762)

 Retained earnings                                          255,712     225,190

 Total equity                                               748,531     718,733



 LIABILITIES

 Non-current liabilities

 Borrowings                                                 252,470     255,755

 Government grants                                            6,991       7,115

 Non-derivative contract liability                           18,086      18,086

 Deferred tax liabilities                                    12,297      12,326

 Other non-current liabilities                                3,000       3,000

 Provisions                                                       9           9

 Total non-current liabilities                              292,853     296,291

 Current liabilities

 Borrowings                                                  20,266      23,808

 Trade and other payables                                    29,298      20,215

 Provisions                                                       2           2

 Non-derivative contract liability                            3,355       5,121

 Total current liabilities                                   52,921      49,146

 Total liabilities                                          345,774     345,437

 Total equity and liabilities                             1,094,305   1,064,170



Further information:
Sven Kunsing
Head of Finance Communications
[email protected]
(https://www.globenewswire.com/Tracker?data=eahglFI0K4UUxwsmqXkQdO3N_ld1uojlGTE_
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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 2022, the Company had a total installed electricity production
capacity of 457 MW and a total installed heat production capacity of 81 MW.
During 2022, the Company produced 1,118 GWh of electricity, 565 GWh of heat
energy and 154 thousand tonnes of wood pellets.