In Q3 2023, Enefit Green group total revenues increased by 32% y-o-y to €36.4m and EBITDA was up by 66% y-o-y at €25.5m. During the quarter, the group earned net profit of €15.3m, 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 €100/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 €600m in 2023-23. We raised nearly €100m via the recent IPO and signed new loan agreements with SEB and OP banks worth €130m to finance these investments.”
Webinar to present the results of Q3 2023
Today, November 5, 2023 at 14.00 EET Enefit Green will host a Webinar in English to present and discuss its Q3 2023 results. To participate, we kindly ask to register your participation before the start of the event by clicking here.
Significant events during Q3 2023
- 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 2023 | 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, m€ | 27.6 | 36.4 | 8.8 | 32% |
| Sales revenue, m€ | 21.5 | 30.1 | 8.7 | 40% |
| Renewable energy support and other income, m€ | 6.2 | 6.3 | 0.1 | 2% |
| EBITDA, m€ | 15.4 | 25.5 | 10.1 | 66% |
| NET PROFIT, m€ | 4.1 | 15.3 | 11.1 | 270% |
| EPS, € (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 €36.4m in Q3 2023. Group’s electricity production in Q3 2023 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 €116/MWh in Q3 2023, compared with 78 €/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 €9.5m. The average price in the NP Estonia price area was €97.5/MWh in Q3 2023, compared with €36.8/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 €94.6/MWh and €32.8/MWh in the two periods.
Another major factor was pellet sales, which fell by €3.0m in Q3 2023, dropping from 26 thousand tonnes in the comparative period to 4 thousand tonnes in the reporting period. Sales for Q3 2023 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 €0.3m.
The most significant contributor to other operating income was renewable energy and efficient cogeneration support received by the Iru WTE facility, which increased by €0.7m y-o-y. The rise is attributable to a contract amendment that took effect in February 2023, 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 €0.3m y-o-y because the 12-year eligibility period of the earliest completed part of the Aulepa wind farm (39 MW) expired in July 2023.
EBITDA and segmental breakdown
Group’s EBITDA increased by 66% y-o-y to €25.5m in Q3 2023 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 €2.6m compared to Q3 2020. Group fixed expenses increased by 4% or €0.3m 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 €9.5m to total revenue.
Net profit
The group’s net profit increased almost fourfold compared to Q3 2020, amounting to €15.3m 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 2023 totalled €8.1m, €4.2m up on the comparative period. Growth resulted from development expenditures, which amounted to €7.9m. Out of the latter, €7.7m was spent on the development of wind farms under construction: the second instalment payment of €1.6 m for the Šilale II wind farm and the first instalment payment of €6.2m for the wind turbines of the Akmene wind farm. Expenditure on the improvement and maintenance of existing assets was €0.2m compared with €0.6m in the comparative period and was mainly related to the maintenance of cogeneration facilities.
Condensed consolidated interim income statement
| in thousand euros | Q3 2023 | Q3 2020 | 9m 2023 | 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 2023 | 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 2023 | 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]
https://enefitgreen.ee/en/investorile/
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 2023, 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.
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