Lower power sale prices hit Enefit Green's Q1 profit

May 15, 2023 04:41 PM ET
  • Estonia-based renewable energy manufacturer Enefit Green AS (TAL: EGR1T) saw its first-quarter web profit visit 13% on the year to EUR 30.5 million (USD 33.3 m), primarily as a result of the lower market value for electrical power.
Lower power sale prices hit Enefit Green's Q1 profit

The Baltic company operates 457 MW of eco-friendly electrical energy generation ability, consisting of wind, solar, co-generation and hydropower plants in Estonia, Lithuania, Latvia and Poland. In addition, it has 81 MW of installed heat manufacturing capacity.

In its first-quarter financial report released recently, Enefit Green's CEO Aavo Karmas claimed incomes were adversely affected by the contracted market prices for electricity and also electrical energy purchase costs for balancing its portfolio of long-lasting electricity contracts (PPAs).

Due to the climbing operating costs, incomes prior to passion, tax obligation, devaluation and also amortisation (EBITDA) fell by 10% in yearly terms. Profits, on the other hand, boosted by 18% on the year thanks to the beneficial wind problems and also high integrity of assets, which led to a boost in power result during the three months.

With near to EUR 92 numerous financial investments in January-March, the Tallinn-based company remains in the procedure of increasing its fleet of power generation assets. "Enefit Green has a clear guidebook to quadruple the production capacity on its core markets in the coming years," the chief executive officer claimed.

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