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The Estonian transmission system operator Elering plans to invest 209 million euros this year compared to the year-earlier 74 million euros.
Estonian transmission system operator to invest EUR over 200 mln this year
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According to the company's annual report, its revenues increased last year to 109.5 million euros from 94 million euros in 2011. Net profit was 34.9 million euros (21 million in 2011). The whole profit will be used to finance investments, Elering said.
Operating profit grew by 14.9 million euros or 16 percent in annual comparison, while operating expenses rose by 2.1 million euros or 3 percent. Compared with the 2012 budget, the company saved on all costs except for depreciation and amortization and the network services purchased. Financial costs decreased by 2.1 million euros compared to the previous year.
The new underwater cable Estlink 2 between Estonia and Finland will take up the biggest part of the investments planned for this year, nearly 45 percent, with the remainder to be divided mainly between the standby power plant at Kiisa, Estlink 1 and ordinary investments. Elering intends to invest 116 million euros in 2014 and 32 million euros in 2015, according to the report.
"The intensive investment period of the company lasts till 2015 and in order to finance the investments we propose to the Ministry of Economic Affairs and Communications as the owner to reinvest the entire net profit in developing Estonia's electricity system," CEO Taavi Veskimagi said.
To finance future investments Elering concluded a 15 million euro loan agreement with the Nordic Investment Bank last year. At the end of last year the company had undrawn loan facilities worth 110 million euros, undrawn European Union aid in the amount of 35 million euros and an undrawn overdraft facility of 20 million euros.
"The 2012 results are the best ever for Elering," Veskimagi said. "Our strategic aim is to create through efficient operation positive value added every year. The net profit achieved last year, 7.6 percent above the margin confirmed by the Competition Board, testifies that we've succeeded in making all command systems work well in the three years since Elering's separation from Eesti Energia."
Elering's assets totaled 515.7 million euros at the end of 2012 including 461 million euros in tangible assets. Equity stood at 225.1 million euros and debt liabilities amounted to 227 million euros.