CORRECTION:
The previous notification “Enefit Green interim report for Q1 2025” (English version) included erroneous versions of attachments (English pdf version of the report itself and accompanying presentation).
Please disregard previous notification and use the corrected attachments in this notification.
Corrected version follows below.
Enefit Green interim report for Q1 2025
In Q1 2025, the Enefit Green group’s operating income decreased by 3% while operating expenses (excl. D&A) increased by 35% compared to Q1 2024. As a result, EBITDA fell by 27% to €31.0m and net profit for the period decreased by €11.8m to €21.7m. (earnings per share €0.082).
Juhan Aguraiuja, CEO of Enefit Green comments:
” In the first quarter, we produced 617 GWh of electricity, which is 25% more than a year earlier, and 105 GWh of thermal energy, which is 19% less. Although electricity production increased, the overall result for the quarter was affected by exceptionally low wind speeds in February. The decrease in thermal energy production was related to the sale of the biomass-based cogeneration and pellet business, which took place at the end of 2023 and the beginning of 2024.
Despite the increase in regional electricity prices in the Baltics and Poland, Enefit Green’s implied captured electricity price remained a third lower than last year, which reduced operating income and EBITDA. The main reason was the deepening of the wind discount – a large part of the production fell at a time when electricity prices on the market were very low. Digital solutions allow us to flexibly adapt production and avoid unprofitable sales. Long-term electricity contracts (PPAs) also help to ensure a more stable and predictable revenue base in a volatile market situation.
In Lithuania, active construction activities continued at the Kelmė II wind farm, where the erection of wind turbines has begun. In Poland, we made final investment decision to build the Strzałkowo solar farm. The projected annual production of the farm amounts to 45 GWh and 75% of the production is covered by a 15-year indexed contract for difference (CfD), which helps to mitigate price risks and ensure stable cash flow.
The changed market situation requires us to be flexible in managing investments as well as developing our business model. We focus on increasing the return on invested capital and thereby increasing the value of the company.”
Webinar to present the results of Q1 2025
Today, 8 May 2025 at 13.00 EET Enefit Green will host a Webinar in English to present and discuss its Q1 2025 results. To participate, please follow this link.
Significant events
- Final investment decision to construct 45 MW Strzalkowo solar farm in Poland
- Starting partnership with Sumitomo Corporation to develop Liivi offshore wind farm
- Eesti Energia’s voluntary takeover bid to the shareholders of Enefit Green
Key figures
| Q1 2025 | Q1 2024 | Change | Change % | |
| PRODUCTION AND SALES VOLUMES | ||||
| Electricity production | 617 | 494 | 123 | 25% |
| incl. new wind and solar farms | 343 | 168 | 175 | 104% |
| incl. assets sold | 0 | 4 | -4 | -100% |
| Electricity sales | 763 | 627 | 136 | 22% |
| Heat energy production | 105 | 129 | -24 | -19% |
| incl. assets sold | 0 | 21 | -21 | -100% |
| OPERATING INCOME, m€ | 66.9 | 68.9 | -2.0 | -3% |
| Sales revenue | 62.4 | 56.2 | 6.3 | 11% |
| Renewable energy support and other income | 4.4 | 12.7 | -8.3 | -65% |
| EBITDA, m€ | 31.0 | 42.4 | -11.4 | -27% |
| NET PROFIT, m€ | 21.7 | 33.4 | -11.8 | -35% |
| EPS, € | 0.082 | 0.127 | -0.045 | -35% |
Revenue and other operating income
The group’s Q1 electricity production increased by 123 GWh (+25%) to 617 GWh. The figure includes the production from new wind and solar farms completed and under construction, which increased by 175 GWh year on year. Heat production decreased by 24 GWh (-19%). The decrease in heat production was mainly due to the assets sold in Q1 2024.
Operating income for Q1 2025 decreased by €2.0m compared to the same period last year – revenue increased by €6.3m and renewable energy support and other operating income decreased by €8.3m. Operating income from continuing business grew by €6.0m as relevant revenue grew by €8.3m and other operating income declined by €2.4m.
Revenue from the continuing business grew by €8.3m, driven by electricity revenue, which grew by €6.7m due to higher electricity production (+127 GWh, +26%). In Q1 2025, the average electricity price* in the group’s core markets was €107.4/MWh (Q1 2024: €87.0/MWh) and the group’s average implied captured electricity price** was €54.5/MWh (Q1 2024: €81.4/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 the renewable energy generation profile differs significantly from the base load profile.
The group’s average price of electricity supplied to the market in Q1 2025 was €74.6/MWh (Q1 2024: €77.6/MWh). The amount of electricity supplied to the market in Q1 2025 was 330 GWh compared with 292 GWh a year earlier.
In Q1 2025, 433 GWh of the group’s electricity production was covered by PPAs at an average price of €65.2/MWh. In Q1 2024, 335 GWh of electricity was supplied under PPAs at an average price of €75.0/MWh. The amount of electricity sold under PPAs has increased, but the average price of that electricity has decreased compared to the same period last year because the supply periods under the PPAs signed at lower prices started in July 2024.
In Q1 2025, we purchased 178 GWh of electricity from the market at an average price of €123.4/MWh, compared with 137 GWh at an average price of €106.1/MWh in Q1 2024. The volume of electricity purchases increased (+41 GWh) due to both higher purchases for PPAs (+31 GWh) and growth in production volume, which increased the volume of other purchases (+10 GWh). The volume of electricity purchased to meet PPA obligations in Q1 2025 was also higher than expected because wind power production in the period was low due to calm weather, but the volume of electricity sold under PPAs has increased.
The realised purchase price increased compared to Q1 2024 in line with the rise in market prices, but the price of electricity sold to the market declined due to higher wind discounts. Enefit Green’s wind discounts in Estonia and Lithuania were similar to the market level, increasing by 5.4 and 8.7 percentage points year on year in Estonia and Lithuania, respectively.
The low correlation of production with other Finnish wind farms and the curtailment of generation capacity during periods of excessively low electricity prices helped Enefit Green to significantly reduce its Finnish wind energy discount compared to the market average.
Heat revenue from the continuing business grew by €1.2m to €2.1m. The rise in heat revenue was due to an increase in the heat price of €11.6/MWh compared to the same period last year, while heat production from the continuing business decreased by 3 GWh to 105 GWh (Q1 2024: 108 GWh).
Other operating income from the continuing business decreased by €2.4m to €4.4m (Q1 2024: €6.8m). Renewable energy support for the continuing business decreased by €2.0m to €4.3m. The renewable energy support is linked to the amount of electricity produced by eligible wind and solar farms in Estonia, the Iru CHP plant and solar farms in Poland.
The renewable energy support received for eligible generation assets located in Estonia decreased by €2.2m. The support received by the Iru CHP plant decreased by €1.2m and the support received by the Estonian wind farms decreased by €1.0m compared to Q1 2024.
In addition to the market price of electricity, in Q1 2024 the Iru CHP plant received renewable energy support of €53.7/MWh for electricity produced from renewable sources and efficient cogeneration support of €32/MWh for electricity produced from non-renewable sources in an efficient cogeneration mode. The payment of support to the Iru CHP plant was terminated early from the beginning of 2025 in connection with the entry into force of section 59 subsection 1 clause 2 point 8 of the Electricity Market Act. In December 2025, an amendment to the act was initiated according to which the payment of support to the Iru CHP plant will be resumed until the end of the support period specified in the original conditions for eligibility for support.
The eligibility period for the Purtse wind farm started in Q2 2024, which increased the amount of support received by €0.6m year on year, and the eligibility period for the Aseriaru wind farm ended in October 2024, which reduced the support received in Q1 2025 by €0.9m year on year.
EBITDA
The decrease in the price of electricity sold reduced EBITDA for Q1 2025 by €7.4m compared to Q1 2024. Due to the increase in production volume, the amount of electricity sold grew significantly, improving EBITDA by €10.4m year on year. As the volume of electricity sold under PPAs has also increased significantly, the volume of electricity purchased to balance the electricity portfolio increased, reducing EBITDA by €1.4m year on year, and the increase in the market price of electricity purchased had an additional negative impact on EBITDA (-€5.5m). The overall effect of these items on EBITDA was influenced by both the volume and profile of electricity generation during the periood.
The impact of the assets sold on EBITDA was negative at €6.5m.
The Iru CHP plant, excluding fixed costs and the impacts of electricity price and volume, increased EBITDA by €0.1m. The figure reflects the effects of heat energy, gate fees for the reception of waste and technological fuel (mainly natural gas). The results of the Iru CHP plant are described in more detail in the chapter on the Cogeneration segment.
The increase in the fixed costs of the continuing business reduced EBITDA by €1.9m compared the same period last year, including an increase of €0.6m in research and consulting expenses, an increase of €0.5m in the maintenance and repair costs of production assets and an increase of €0.3m in insurance costs due to an increase in insurance coverage and the addition of insurance for assets under construction.
Net profit
Q1 2025 net profit decreased by 35% y-o-y to €21.7m. The decrease was driven by decrease of EBITDA and increase of depreciation of fixed assets of continuing business.
Capital Expenditures
The group’s investments in Q1 2025 amounted to €37.7m, €67.1m less than in Q1 2024. The decrease came from development investments, which totalled €36.6m. Of this, €24.6m was invested in the construction of three wind farms: €6.8m in the Sopi-Tootsi wind farm and €17.8m in the Kelmė I and II wind farms (€3.1m and €14.7m, respectively).
The estimated cost of completing the assets under construction is €100m, most of which is required for the completion of the Kelmė II wind farm and the Strzałkowo solar farm.
Financing
At 31 March 2025, the amortised cost of the group’s interest-bearing liabilities was €734.0m (31 December 2024: €734.5m). Loan liabilities to banks accounted for €724.4m of the total, including an outstanding loan balance of €5.7m denominated in Polish zloty.
In Q1 2025, Enefit Green drew down bank loans of €20m. No new loan agreements were signed during the period.Net debt/EBITDA ratio stood at 6.2 at the end of Q3 2024 (30 June 2024: 5.5). The increase is explained by large volume of development projects under construction.
The interest rate risk of investment loans with the total outstanding balance of €137.2m has been hedged with interest rate swaps, which fix the interest rates of the loans in the range of 1.049–1.125% (plus the margin) until the loans mature. The average interest rate of bank loans drawn down at 31 March 2025 was 3.72% (31 December 2024: 3.90%).
Loans raised but not drawn down at 31 March 2025 totalled €195m, the figure consisting of investment loans of €165m and revolving credit facilities of €30m.
Condensed consolidated interim income statement
| € thousand | Q1 2025 | Q1 2024 |
| Revenue | 62,447 | 56,192 |
| Renewable energy support and other operating income | 4,449 | 12,729 |
| Raw materials, consumables and services used | (28,226) | (20,674) |
| Payroll expenses | (2,333) | (2,225) |
| Depreciation, amortisation and impairment | (10,021) | (9,342) |
| Other operating expenses | (5,331) | (3,595) |
| OPERATING PROFIT | 20,985 | 33,085 |
| Finance income | 536 | 570 |
| Finance costs | (530) | (306) |
| Net finance income | 6 | 264 |
| Profit (loss) from associates under the equity method | 22 | (10) |
| PROFIT BEFORE TAX | 21,013 | 33,339 |
| Income tax income | 657 | 107 |
| PROFIT FOR THE PERIOD | 21,670 | 33,446 |
Condensed consolidated interim statement of financial position
| € thousand | 31 March 2025 | 31 December 2024 |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 1,422,653 | 1,394,343 |
| Intangible assets | 59,696 | 59,727 |
| Right-of-use assets | 8,522 | 8,525 |
| Prepayments for non-current assets | 37,493 | 37,536 |
| Deferred tax assets | 1,774 | 1,211 |
| Investments in associates | 570 | 548 |
| Derivative financial instruments | 3,372 | 3,400 |
| Non-current receivables | 1,330 | 1,330 |
| Total non-current assets | 1,535,409 | 1,506,620 |
| Current assets | ||
| Inventories | 1,827 | 2,011 |
| Trade receivables | 6,934 | 10,151 |
| Other receivables | 10,999 | 13,291 |
| Prepayments | 8,862 | 7,814 |
| Derivative financial instruments | 2,216 | 3,274 |
| Cash and cash equivalents | 35,481 | 44,023 |
| Total current assets | 66,319 | 80,564 |
| Total assets | 1,601,728 | 1,587,184 |
| € thousand | 31 March 2025 | 31 December 2024 |
| 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 | 8,291 | 8,291 |
| Other reserves | 164,349 | 163,674 |
| Foreign currency translation reserve | 392 | 182 |
| Retained earnings | 285,172 | 263,502 |
| Total equity | 782,831 | 760,276 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Borrowings | 670,872 | 669,313 |
| Government grants | 2,761 | 2,809 |
| Contract liabilities | 6,345 | 6,345 |
| Deferred tax liabilities | 12,412 | 12,484 |
| Other non-current liabilities | 9,042 | 8,059 |
| Provisions | 193 | 194 |
| Total non-current liabilities | 701,626 | 699,204 |
| Current liabilities | ||
| Borrowings | 63,137 | 65,160 |
| Trade payables | 38,021 | 36,926 |
| Other payables | 11,653 | 19,450 |
| Provisions | 2 | 8 |
| Contract liabilities | 4,459 | 6,161 |
| Total current liabilities | 117,272 | 127,704 |
| Total liabilities | 818,897 | 826,908 |
| Total equity and liabilities | 1,601,728 | 1,587,184 |
Further information:
Sven Kunsing
Head of Finance Communications
investor@enefitgreen.ee
https://enefitgreen.ee/en/investorile/
Attachments
- EGR1T interim report Q1 2025
- enefit_green_presentation_Q1_2025_eng
