Eesti Energia to invest up to €300 million to improve efficiency
Estonian state-owned energy firm Eesti Energia is to invest 200-200 million euros over the next five years in order to increase the efficiency of existing assets and the value of the final product as well as establish new capacities and expand the company to the Scandinavian electricity and gas retail Market.
Over the course of the process, the company plans to reach earnings before interest, taxes, depreciation and amortization (EBITDA) worth 300 million euros.
“In recent years, we have invested more than we have earned profit, therefore it is necessary to direct assets into producing EBIDTA as soon as possible,” explained Eesti Energia CFO Andri Avila at a press conference on Monday. “For that reason, we are increasing the productivity of existing assets while keeping costs as minimal as possible.”
Investments until 2020 will total between 200 million and 300 million euros, but this number does not include the establishment of the possible new Enefit oil factory, added the CFO.
One of the primary strategies in the updated development plan will be to increase the value-added of oil shale more than before, and, with that in mind, the company will start producing fuel from oil shale gas in 2019.
The company is also planning to optimize its production activity as well as invite large power consumers and server parks to Estonia. In addition, the company will reorganize its management structure by merging different units.
On Monday, Eesti Energia introduced its strategic development plan for 2016-2020. The plan is to be reviewed annually.