Energy Update: Mixed Financial Results, Low Hanging Lines

(Postimees/Scanpix)
7/31/2014 3:30 PM
Category: Economy

Transmission system operator Elering and energy giant Eesti Energia, both state-owned, posted second quarter results today, with Elering reporting a steep increase and Eesti Energia opposite figures.

Elering earned 10 million euros in Q2 of 2014, 7.9 million euros more than during the same period a year earlier while expenses remained the same. Income increased due to cross-border transactions.

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Eesti Energia's Q2 turnover decreased by 5 percent to 205 million euros compared to the same period in 2014. Profits dropped from 43 million to only 6 million euros.

Head of investor relations at the company, Veiko Räim, said the vast difference in profits came from bookkeeping practices, as they recognized income tax payments - nearly 30 million euros - later than they did in the same period in the comparison year, 2013.

Sales of electricity fell by 21 percent, with shale oil sales doubling to balance out turnover.

The company said it has 462 million euros available, with 250 million of that in credit. The company also has 724 million euros worth of loans.

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Elering said the recent heat wave could have an affect on power lines, which could hang lower as a result.

The company said that vehicles higher than 4.5 meters are prohibited from crossing under power lines.

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The Ministry of Economic Affairs has prepared a draft law to merge the grid operator and electricity provider invoices into one bill.

Under the current system each client, private or business, receives two power bills each month, one for the electricity used and one from the grid operator. Eesti Energia clients currently receive a joint bill, with other companies saying the practice is unfair and gives the state-owned giant an advantage.


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