Power Company's Half-Year Profit Figures Down Sharply
Eesti Energia's operating revenue in the second quarter were 206 million euros, up 21 percent, and net profit amounted to 21 million euros, up 45 percent.
The half-year numbers compared to the first two quarters of 2010 revealed a 10.5 percent increase in sales and a hefty 37.4 percent drop in net profit.
"In the half-year view, the decline on the regulated market was significant and the growth of open markets was not enough to keep the profit at its former level," said the energy giant's CFO Margus Kaasik.
The growth of turnover in Q2 came from sale of electricity on the open market (an increase of 6 million euros), sales of liquid fuels (6 million euros) and a one-time profit from sale of a 11 percent stake in the Jordan development project and revaluation of the remaining stake at fair value (16 million euros).
In the second quarter, Eesti Energia sold 2.5 terawatt hours (TWh) of electricity (8.6 percent more than in Q2 2010), of which 1.2 TWh was sold at regulated prices (3,7 percent more).
The sale of electricity at non-regulated prices in the Q2 was 14 percent more than in the previous year's second quarter. Eesti Energia has an average market share of 75 percent of the deregulated portion of the Estonian market. Its share of the corresponding segments in Latvia and Lithuania averaged 14 and 7 percent.
Kristopher Rikken