Eesti Energia EBITDA shrinks to €400 million
The Eesti Energia Group's normalized EBITDA, or operating profit before depreciation, for its ongoing business operations in 2024 amounted to €400 million, while the normalized net profit, excluding the impact of asset impairments, was €186 million, the company announced. Both profit indicators declined compared to 2023.
According to Marlen Tamm, a member of the management board and CFO of Eesti Energia, the profitability of almost all of the group's business sectors increased in 2024, with the exception of the declining oil shale-based electricity production, whose profitability has dropped significantly.
"Renewable energy production, electricity sales, network services and liquid fuel production are all business areas that made a strong contribution to the group's profit. However, oil shale-based electricity production, which is crucial for ensuring security of supply, has lost its competitiveness in the market and is now operating at a loss," Tamm explained.
She added that half of the group's nearly €1.8 billion in revenue came from electricity sales and renewable energy production, with nearly 60 percent of that revenue generated outside Estonia.
In 2024, Eesti Energia produced a total of 3,791 gigawatt-hours of electricity, which is a 5 percent, or 177 gigawatt-hour, increase compared to the previous year.
Eesti Energia's revenue amounted to €1.785 billion, reflecting a decline of €120 million compared to the €1.905 billion recorded in 2023. EBITDA also decreased, falling from €483 million in 2023 to €400 million in 2024, a reduction of €83 million.
Net profit without impairments dropped from €257 million to €186 million, down by €71 million. However, fixed asset impairments were significantly lower in 2024 at €171 million, compared to €632 million the previous year, improving by €461 million. As a result, net profit, including impairments, saw a major turnaround from a loss of €376 million in 2023 to a profit of €15 million in 2024, an improvement of €390 million.
Operating cash flow surged dramatically from €14 million in 2023 to €589 million in 2024, an increase of €575 million. Investments totaled €722 million in 2024, slightly lower than the €779 million invested in 2023, marking a decrease of €57 million. Within this, Enefit Green's renewable energy investments rose by €33 million, reaching €388 million in 2024, while Elektrilevi's grid investments declined by the same amount, dropping to €138 million.
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Editor: Marcus Turovski
