Enefit Green financial results for Q3 2021
- Nov 5, 2021 12:26 pm GMT
In Q3 2021, 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
“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
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
Webinar to present the results of Q3 2021
Significant events during Q3 2021
- Investment decision to build a 75 MW wind farm in Akmene (
- Investment decision to build a 8 MW solar farm in Zambrow (
- Acquisition of two wind power development projects (120 MW in total): Kelme II and III (
- New loan agreements with
SEB and OP Bank
- Preparations for the IPO
|Q3 2020||Q3 2021||Change||Change %|
|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%|
|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 2021. Group’s electricity production in Q3 2021 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 2021, compared with 78 €/MWh in Q3 2020.
The most important revenue driver was the surge in the electricity price in the
Another major factor was pellet sales, which fell by €3.0m in Q3 2021, dropping from 26 thousand tonnes in the comparative period to 4 thousand tonnes in the reporting period. Sales for Q3 2021 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
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
EBITDA and segmental breakdown
Group’s EBITDA increased by 66% y-o-y to €25.5m in Q3 2021 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.
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.
The group’s capital expenditures in Q3 2021 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 2021||Q3 2020||9m 2021||9m 2020|
|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)|
|Depreciation, amortisation and impairment||(9,467)||(10,595)||(28,592)||(28,932)|
|Other operating expenses||(1,867)||(1,459)||(5,549)||(5,490)|
|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|
|Property, plant and equipment||606,178||598,718||594,980|
|Deferred tax assets||393||1,185||344|
|Investments in associates||474||512||532|
|Total non-current assets||689,333||667,867||666,020|
|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|
|in thousand euros|
|Equity and reserves attributable to equity holder of the parent|
|Statutory reserve capital||479||479||479|
|Derivative financial instruments||23,207||-||-|
|Deferred tax liabilities||12,469||11,724||12,555|
|Total non-current liabilities||178,324||188,785||182,146|
|Trade and other payables||10,376||8,435||9,858|
|Total current liabilities||53,499||45,718||47,750|
|Total equity and liabilities||731,170||727,827||739,445|
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
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