REG - Eesti Energia AS - Eesti Energia Group Unaudited Results for Q3 2025

Enefit Green ASAnnouncement

07/11/2025 08:15

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RNS Number : 5831G  Eesti Energia AS  07 November 2025

Eesti Energia Group Unaudited Results for Q3 2025

Sales Revenues and Profitability

The energy market remained challenging in Q3 2025, reflecting falling
electricity and shale oil prices. Availability of oil-shale-based assets was
also limited due to maintenance and technical restrictions. As a result, in Q3
2025 sales revenue totalled EUR 282.7 million, a 27% decrease year-on-year.
EBITDA declined to EUR 27.9 million (-31% year-on-year), while adjusted
EBITDA, excluding temporary fair-value changes of long-term PPA derivatives,
totalled EUR 32.5 million (-25% year-on-year). Reported net loss for the
quarter was EUR 66.0 million, with adjusted net loss at EUR 61.4 million,
including impairments of EUR 39 million recognised for shale oil production
assets.

Lower profitability mainly reflected the decline in electricity prices across
the Baltics and the exceptionally low shale-oil sales volumes caused by
maintenance shutdown. At the same time, the distribution segment continued to
demonstrate strong and stable performance.

*Adjusted EBITDA and adjusted net profit exclude temporary fluctuations in the
fair value of long-term Power Purchase Agreement (PPA) derivatives to enable
better period-to-period comparability.

CFO Marlen Tamm commentary:

"Despite a challenging energy market, the year 2025 has brought significant
developments to the Baltic energy sector. The desynchronisation from the
Russian grid marked a major step towards energy independence. In the new
market environment, the need for dispatchable capacity and system flexibility
is increasing, creating new opportunities for Eesti Energia.

Following record-high investment levels in previous years, our focus
throughout 2025 remains on completing ongoing developments and improving
efficiency. To further strengthen profitability and streamline operations,
structural changes are being prepared that will take effect from 2026,
introducing three business lines - Distribution, Electricity, and Industry.
This transformation will create a more focused and efficient organisation,
better positioned to deliver on our strategic goals. Near completion renewable
energy projects and the launch of the new liquid fuels plant will provide an
additional layer for future earnings.

Although electricity prices remain low and volatile, our strategic direction
remains on establishing a balanced portfolio combining renewable generation,
dispatchable power and flexibility services. This approach ensures reliable
service for our customers and long-term value creation for our investors."

Renewable Generation and Electricity Sales Segment

Sales revenue from renewable generation and electricity sales amounted EUR
152.6 million, a 31% decrease year-on-year, mainly due to a substantial
decline in market prices despite relatively stable sales volumes.

Renewable electricity output increased by 5% (16 GWh) to 369 GWh, driven
primarily by the new Sopi-Tootsi wind farm in Estonia and Kelmė I and II wind
farms in Lithuania, which together contributed 107 GWh of additional
generation (+93 GWh year-on-year). Retail electricity sales volumes decreased
by 6% indicating a mild dip in customer demand. EBITDA from renewable energy
and electricity sales amounted EUR 8.9 million (-72% year-on-year). The
decrease mainly resulted from lower electricity prices and significantly
higher balancing costs, which reflected the immaturity of the frequency
markets.

Non-Renewable Electricity Production

Revenue from non-renewable electricity production declined by 60% year-on-year
to EUR 15.4 million, mainly due to the decrease in production volume.
Production from oil-shale-based and other fossil-fuel units totalled 57 GWh,
down 83% year-on-year, as the Auvere power plant underwent a major overhaul
and market conditions limited dispatchable generation due to low market
prices.

Segment EBITDA was EUR -6.6 million, compared to EUR -5.1 million a year
earlier. The amount of oil shale used in the third quarter of 2025 was the
lowest in the Group's history.

Despite weaker results this quarter, fossil-based generation facilities remain
critical strategic assets, providing both power generation and frequency
services. Notably, Estonia currently lacks a compensation mechanism for
maintaining strategic reserve power services, meaning Eesti Energia has been
providing this functionality at no cost. However, a new regulation effective 1
January 2026 will enable the Transmission System Operator (TSO), Elering, to
procure reserves to ensure region's energy security, creating a new revenue
opportunity.

Distribution Segment

Distribution service revenue increased by 12% year-on-year to EUR 73.1
million, supported by a 4% increase in sales volume to 1.41 TWh and higher
average network charges.

Distribution EBITDA improved strongly to EUR 27.4 million (+55% year-on-year),
driven by a higher margin and increased sales volume. Variable costs declined
thanks to lower electricity purchase prices and reduced network losses, which
stood at 4.2% of distributed electricity.

Shale Oil Segment

The shale-oil segment was heavily affected by unexpected maintenance outages
and lower fuel market prices. Sales revenue amounted to EUR 11.6 million, a
69% decrease year-on-year, as sales volume decreased by 60% to 37 thousand
tonnes.

The average sales price fell by 16% year-on-year to EUR 347.7 per tonne. When
including the impact of positive derivative results (EUR 64.9 per tonne), the
effective sales price averaged EUR 412.6 per tonne, representing an 11%
increase compared to last year.

Production reached 42 thousand tonnes (-52% year-on-year), reflecting the
general overhaul of Enefit 280-1. Segment EBITDA was EUR -6.2 million (EUR
-10.7 million year-on-year), as lower margins (EUR -3.6 million) and
significantly lower sales volumes (EUR -13.1 million) outweighed the positive
impact from lower fixed costs (EUR +6.5 million) and improved realised
derivative gains (EUR +6.1 million).

Other Products and Services

Revenue from other products and services increased by 11% year-on-year to EUR
30.0 million, mainly driven by strong growth in flexibility and
frequency-reserve services (EUR +7.0 million year-on-year).

EBITDA for the segment increased to EUR 4.3 million, up EUR 13.2 million
year-on-year. Compared to the same period in 2024, natural gas EBITDA
increased by EUR 5.0 million. The main factor was variable costs, which were
very high in the third quarter of 2024 but normalised in 2025. Heat EBITDA
decreased by EUR 3.0 million. EBITDA from flexibility services increased by
EUR 11.3 million.

Investments

The Group's investments in Q3 2025 totalled EUR 104.4 million, -37% (EUR -60.0
million year-on-year), as large renewable projects are nearing its completion.
Investments in renewable energy amounted to EUR 27.8 million (-64%
year-on-year), focusing on wind-farms in Estonia and Lithuania and the
Strzałkowo solar project in Poland.

Distribution-network investments reached EUR 40.7 million (EUR +6.1 million
year-on-year), supporting the continued conversion to weatherproof cabling and
reliability upgrades. Investments into the new shale-oil plant (Enefit 280-2)
totalled 5.4 million. The plant is expected to be operational by 26Q1.

Financing and Liquidity

The Group's borrowings at the end of the third quarter of 2025 amounted to EUR
1.637 million (end of Q2 2025: EUR 1.731 million). The Group's borrowings
consisted of borrowings of the parent company of EUR 875 million and those of
the subsidiary Enefit Green of EUR 736 million. At the end of the 25Q3, the
Group had strong liquidity buffer of EUR 644 million. Group had EUR 224 in
cash, undrawn loans of EUR 420 million, of which EUR 270 million was
attributable to the parent company and EUR 150 million to Enefit Green AS.

Key financing developments during the quarter included:

·      The remaining 2.8% stake in Enefit Green was acquired in the
first half of the third quarter of 2025. As a result, Enefit Green AS was
delisted on 4 August 2025.

·      In September 2025, Eesti Energia has withdrawn its rating with
S&P.

Current credit ratings:

·      Fitch: BBB-, Outlook: Stable

·      Moody's: Baa3, Outlook: Negative

Outlook

The Group continues to focus on completing key renewable projects, finalising
the Enefit 280-2 plant and investing in the distribution network, which
remains the Group's most resilient business line. The Electricity Market
Amendment Act, effective from 2026, will further support dispatchable
generation to ensure region's energy security. That will provide a mechanism
to cover the fixed costs of oil-shale-based power plants from 2026 onwards.

Looking ahead, Eesti Energia is preparing for a new phase of transformation
that will further strengthen profitability and competetiveness. Starting from
2026, the Group will operate under three business lines - Distribution,
Electricity, and Industry - within the Enefit brand, creating a simplified and
integrated structure. This reorganisation, together with the full acquisition
of Enefit Green in 2025, will enable stronger coordination of generation,
trading and retail activities, as well as efficiency gains across industrial
operations.

These strategic and structural changes lay the foundation for a more
resilient, efficient and profitable business. From 2026 onward, these changes
are expected to drive earnings growth, strengthen cash flows and support the
Group's investment-grade credit profile while advancing the region's
transition to a carbon-neutral energy system.

Key financial information

Condensed Consolidated Interim Income Statement

 

                                                                 3rd Quarter           9 months
 in million EUR                                                  2025       2024       9m 2025    9m 2024
 Revenue                                                         282.7      387.6      1,184.4    1,303.0
 Other operating income                                          4.2        33.6       46.2       126.8
 Change in inventories of finished goods and work-in-progress    22.0       (0.5)      13.1       6.8
 Raw materials and consumables used                              (207.4)    (306.3)    (789.9)    (836.7)
 Payroll expenses                                                (46.3)     (45.9)     (146.1)    (142.9)
 Depreciation, amortisation and impairment                       (81.8)     (41.5)     (163.6)    (120.7)
 Other operating expenses                                        (27.3)     (27.9)     (89.0)     (135.5)
 OPERATING PROFIT/(LOSS)                                         (53.9)     (0.9)      55.1       200.8
 Financial income                                                2.2        2.4        7.5        5.4
 Financial expenses                                              (15.9)     (10.8)     (45.7)     (35.1)
 Net financial income (expense)                                  (13.7)     (8.4)      (38.2)     (29.7)
  
 Profit from associates under the equity method                  (5.5)      0.7        1.0        3.8
 PROFIT/(LOSS) BEFORE TAX                                        (73.1)     (8.6)      17.9       174.9
 Corporate income tax expense                                    7.1        0.2        13.1       (1.6)
 PROFIT/(LOSS) FOR THE PERIOD                                    (66.0)     (8.4)      31.0       173.3

 

Condensed Consolidated Interim Statement of Financial Position

 in million EUR                                            30 September 2025  31 December 2024
 Non-current assets                                                            
 Property, plant and equipment                             3,716.3            3,563.8
 Right-of-use assets                                       27.8               27.9
 Intangible assets                                         95.4               93.5
 Prepayments for non-current assets                        60.5               61.1
 Deferred tax assets                                       6.0                4.2
 Derivative financial instruments                          159.1              213.3
 Investments in associates                                 67.8               74.9
 Other shares and holdings                                 0.3                0.3
 Non-current receivables                                   3.6                3.3
 Total non-current assets                                  4,136.8            4,042.3
  
 Current assets
 Inventories                                               168.2              172.0
 Greenhouse gas allowances and certificates of origin      37.2               74.5
 Trade and other receivables                               222.9              282.2
 Derivative financial instruments                          50.5               90.0
 Cash and cash equivalents                                 223.5              468.9
 Total current assets                                      702.3              1,087.6
 Total assets                                              4,839.1            5,129.9

 

 in million EUR                                                         30 September 2025  31 December 2024
 EQUITY                                                                                     
 Total equity and reserves attributable to equity holder of the Parent                      
 Company
 Share capital                                                          846.6              746.6
 Unregistered share capital                                             259.8              259.8
 Share premium                                                          75.0               75.0
 Statutory reserve capital                                              422.1              398.5
 Perpetual bond                                                         102.7              160.2
 Other reserves                                                         504.9              565.5
 Retained earnings                                                      846.6              746.6
 Total equity and reserves attributable to equity holder of the Parent  2,211.1            2,205.6
 Company
 Non-controlling interest                                               2.3                177.8
 Total equity                                                           2,213.4            2,383.4
                                                                                            
 LIABILITIES                                                                                
 Non-current liabilities                                                                    
 Borrowings                                                             1,429.0            1,498.7
 Deferred tax liabilities                                               13.3               28.0
 Other payables                                                         8.8                8.0
 Derivate financial instruments                                         3.9                4.4
 Contract liabilities and government grants                             507.7              467.9
 Provisions                                                             40.3               39.0
 Total non-current liabilities                                          2,003.0            2,046.0
 Current liabilities                                                                        
 Borrowings                                                             219.6              197.0
 Liquidity swap                                                         31.0               79.8
 Trade and other payables                                               271.9              267.5
 Derivative financial instruments                                       9.9                22.6
 Contract liabilities and government grants                             3.0                2.0
 Provisions                                                             87.3               131.6
 Total current liabilities                                              622.7              700.5
 Total liabilities                                                      2,625.7            2,746.5
 Total liabilities and equity                                           4,839.1            5,129.9

 

Eesti Energia will publish its unaudited Q3 2025 results on 7 November 2025.
The Q3 2025 interim report and investor presentation are available on Eesti
Energia's website (https://www.enefit.com/en/ettevottest/investorile) . An
investor call discussing the Q3 2025 financial results will take place on 7
November 2025 at 11:00 London time, 12:00 Frankfurt time, and 13:00 Tallinn
time. Please join the conference call using the following link
(https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZWI3N2NlYTctZTA4YS00ZGU2LTkyOGUtZmI0NmZmOWMxYmFh%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)
.

Further Information:
Danel Freiberg
Head of Treasury and Financial Risk Management
Eesti Energia AS
Tel: +372 5594 3838
Email: danel.freiberg@energia.ee (mailto:danel.freiberg@energia.ee)

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