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Enefit Green financial results for Q3 2021

  • Nov 5, 2021
  • 153 views
Source: 
GlobeNewswire Europe

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 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 2021-23. 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 2021

Today, November 5, 2021 at 14.00 EET Enefit Green will host a Webinar in English to present and discuss its Q3 2021 results. To participate, we kindly ask to register your participation before the start of the event by clicking here.


 

Significant events during Q3 2021

  • 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 2021   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 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 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 2021, 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 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 February 2021, 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 2021.


 

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.


 

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 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
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 2021 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 2021 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

investor@enefitgreen.ee

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 2021, 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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