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Published: 2022-02-28 08:00:00 CET
Enefit Green
Interim Management statement

Enefit Green unaudited financial results for Q4 and 12 months 2021

In Q4 2021, Enefit Green group total revenues increased by 57% y-o-y to €68.9m and EBITDA was up by 77% y-o-y at €49.6m. During the quarter, the group earned net profit of €39.4m, which is 142% more than in fourth quarter of 2020.

For the full year 2021, Enefit Green group total revenues increased by 13% y-o-y to €183.7m and EBITDA was up by 10% y-o-y at €121.5m, net profit increased to €79.7m or by 17% compared to the year before. Earnings per share (based on post-IPO number of shares) for the full year was €0.30 (2020: €0.26).

Aavo Kärmas, Chairman of the management Board of Enefit Green comments:

“The year 2021 proved that people’s faith in green transition is well grounded and gave a powerful signal that we quickly and strongly need to increase carbon neutral power generation capacities. There is a demand for more renewable energy in both Estonia and Europe. Wind and solar are the cheapest and most sustainable energy sources and the technologies and solutions for large-scale wind and solar power production are available.

Enefit Green’s financial results in 2021 were very strong. The year started on a slightly weaker note due to hard comparison with one of the windiest first quarters in recent memory which had allowed us to achieve record wind energy production volume in 1Q20. As wind conditions were weak in 1Q21, our wind energy production suffered, but as the year progressed, wind conditions improved and so did our results. Second half production volumes were very good and financial results were also supported by strong electricity prices. I am very happy about record electricity and heat production results of our Iru facility and about the tremendous work of our digitalisation focused asset management team which has enabled us to keep availability of our production units at a very high level.

During the year we made good progress with our near term development pipeline – we approved final investment decisions on two wind farms in Lithuania, on one wind farm in Finland and on one solar park in Poland. These projects have a combined installed capacity of ca 199 MW and will be a good addition to our current 457 MW installed electricity production capacity. This year we have about twice the amount of investment decisions before us to complete our 600-plus MW investment program.

During our highly successful IPO in October we promised not only to invest in new capacities to grow the production volumes in the future, but also to treat our shareholders fairly and distribute half of the profits of Enefit Green as dividends. The management board in coordination with the supervisory board are thus proposing to pay out €39.9 million or €0.151 per share.”


Webinar to present the results of 2021

Today, February 28, 2022 at 11.30 EET Enefit Green will host a webinar in English to present and discuss its 2021 results. To participate, please follow this link (if asked, please use event id EGR2802).


Significant events during 2021

  • Investment decision to build a 43 MW wind farm in Šilale (Lithuania)
  • Investment decision to build a 75 MW wind farm in Akmene (Lithuania)
  • Investment decision to build a 72 MW wind farm in Tolpanvaara (Finland)
  • Investment decision to build a 9 MW solar farm in Zambrow (Poland)
  • New loan agreements with SEB and OP Bank
  • Successful IPO raising 100m EUR to finance investments (+75m EUR worth existing shares sold by Eesti Energia)


Key figures

 Q4 2021Q4 2020Change % 12m 202112m 2020Change %
    Electricity, GWh3853665% 1,1931,350-12%
    Heat, GWh1741693% 61854414%
    Pellets, t3843-12% 135162-16%
TOTAL REVENUES, m€68.944.057% 183.7162.713%
    Sales revenue, m€59.336.065% 153.0114.034%
    Renewable energy support and other income, m€9.68.020% 30.748.7-37%
EBITDA, m€49.627.977% 121.5110.210%
NET PROFIT, m€39.416.3142% 79.767.917%
EPS, € (post-IPO number of shares)0.150.06142% 0.300.2617%


Sales revenues and other operating income

The group’s electricity production in 2021 was 1,193 GWh (158 GWh lower than in 2020). The group’s average implied captured electricity price for the period was €107/MWh (2020: €75/MWh).

The key revenue driver was a surge in the electricity price in the Estonia price area of the Nord Pool power exchange (NP Estonia), which increased the group’s sales revenue by around €38.9m. The average market price in NP Estonia in 2021 was €86.7/MWh compared with €33.7/MWh in 2020. The average implied sales price of the group’s production units that are exposed to the NP Estonia electricity price was €82.7/MWh in 2021 and €29.2/MWh in 2020.

Another major factor that influenced the group’s sales revenue was pellet sales, which grew by €6.2m. While pellet production declined by 26k tonnes, pellet sales grew by 54k tonnes year on year on the back of reduced inventory level.

Heat production grew by 14% compared with a year earlier but average sales price dropped by 30%, because on the one hand the new contract with the district heating provider Utilitas Tallinn enabled the group to sell heat year-round but on the other the heat price cap approved by the Estonian Competition Authority was lower. The combined effect of the two factors lowered heat sales revenue by €1.3m. For further information, see the cogeneration section in segment reporting.

The decrease in other operating income for 2021 is attributable to a one-off sale of greenhouse gas emission allowances in the comparative period (€13.7m). Also, the renewable energy support received by the group decreased by €3.7m because the eligibility period of the earliest completed part of the Aulepa wind farm (39 MW) expired in July 2021, the electricity production of Estonian wind farms dropped by 13% and the market price of electricity generated by Polish solar farms was higher, which lowered the amount of support received.


EBITDA and segmental breakdown

EBITDA was positively influenced by the electricity price in the Estonian production units (effect: €38.9m), growth in pellet sales revenue (€6.2m) and a decrease in variable expenses (€3.2m). The strongest negative impact resulted from other income because in 2020 the group earned one-off income from the sale of emission allowances (€13.7m). Other notable drivers were: pellet stocks changed (negative impact: €8.4m), both Estonian and Lithuanian wind farms suffered from lower wind speeds and thus produced less electricity (combined negative impact: €7.9m), renewable energy support decreased (negative impact: €3.7m).

Based on total revenues and EBITDA for the reporting period, the group’s largest segment is the Wind  energy segment (with 59% of total revenues and 74% of EBITDA). The Cogeneration segment contributed 38% to total revenues and 29% to EBITDA. The smallest reportable segment was Solar energy, which accounted for 3% of the group’s total revenues and 1% of the group’s EBITDA.


Net profit

The group’s net profit increased by €11.8m to €79.7m. Growth was supported by high electricity prices in the second half of the year, cont­rol of growth in fixed costs and digitalised asset management which helped secure the availability of production assets and stability in production operations.


Capital Expenditure

The group’s capital expenditures in 2021 totalled €76.5m, €62.7m up on 2020. Growth resulted from development expenditures, which amounted to €72.2m. Out of the latter, €70.0m was related to wind farm developments in the construction phase or scheduled to reach the construction phase in 2022: the group purchased from Eesti Energia’s subsidiary Tootsi Windpark plots for the development of the Sopi wind farm for €29.4m and invested €19.3m in the Šilale II wind farm, €8.3m in the wind turbines of the Akmene wind farm, €6.6m in the Purtse wind farm and €7.1m in the Tolpanvaara wind farm which received an investment decision at the end of 2021.

Expenditure on the improvement and maintenance of existing assets was €4.3m compared with €2.9m in 2020 and was mainly related to the improvements of the Estonian wind farms (€2.0m) and cogeneration facilities.


Capital Structure

At the end of 2021 Enefit Green’s total invested capital of €676.6m (2020: €698.1m) consisted of €633.6m of equity (2020: €509.6m) and €43.0m (2020: €188.6m) of net debt (outstanding debt less cash and equivalents). The ratio of net debt to total invested capital or financial leverage was thus unusually low (6% vs 27% at the end of 2020) due to the IPO proceeds from Q4 2021 and reshaping of the loan portfolio in connection with the launch of new development projects and the addition of new financing partners. At the end of 2021, the group’s undrawn credit facilities totaled €140m. The average interest rate of bank loans drawn down at the end of 2021 was 1.17% (2020: 1.66%). Enefit Green’s capital structure is thus very well prepared for continuing the €600m investment program.


Dividend proposal

In coordination with the Supervisory Board, the Management Board proposes to distribute to shareholders EUR 39.9 million in dividends (0.151 euros per share) from earnings of previous periods in 2022, which is equivalent to 50% of group’s unaudited net profit in 2021.


Condensed consolidated interim income statement

in thousand eurosQ4 2021Q4 202020212020
Renewable energy support and other income9,5627,99030,70548,689
Change in inventories of finished goods and work-in-progress(1,468)1,057(3,708)4,674
Raw materials, consumables and services used(13,854)(13,446)(44,037)(43,820)
Payroll expenses(1,781)(1,625)(6,713)(6,071)
Depreciation, amortisation and impairment(9,553)(9,260)(38,145)(38,192)
Other operating expenses(2,236)(2,014)(7,791)(7,297)
OPERATING PROFIT40,01618,68183,31271,979
Finance income5034721203
Finance costs(669)(795)(2,833)(3,580)
Net finance costs(166)(791)(2,112)(3,377)
Profit (loss) from associates under the equity method3620465
PROFIT BEFORE TAX39,88617,91081,24668,607
Corporate Income Tax Expense(516)(1,639)(1,584)(737)
PROFIT FOR THE PERIOD39,37016,27179,66167,870


Condensed consolidated interim statement of financial position

in thousand euros31 Dec 2021   31 Dec 2020
Non-current assets  
Property, plant and equipment612,503594,980
Intangible assets68,23967,839
Right-of-use assets2,7502,222
Deferred tax assets442344
Investments in associates578532
Long-term receivables78103
Total non-current assets705,300666,020
Current assets  
Trade and other receivables and prepayments                   23,34751,566
Cash and cash equivalents80,45410,774
Total current assets113,33073,425
Total assets818,629739,445


in thousand euros31 Dec 202131 Dec 2020
Equity and reserves attributable to equity holder of the parent  
Share capital264,2764,794
Share premium60,351
Statutory reserve capital479479
Other reserves150,828399,165
Retained earnings157,673105,111
Total equity633,608509,549
Non-current liabilities  
Goverment grants7,4588,020
Derivative financial instruments23,207-
Deferred tax liabilities12,56812,555
Other long-term liabilities3,000
Total non-current liabilities140,130182,146
Current liabilities  
Trade and other payables15,2649,858
Total current liabilities44,89247,750
Total liabilities185,021229,896
Total equity and liabilities818,629739,445


Further information:
Sven Kunsing
Head of Finance Communications

Enefit Green is one of the leading diversified renewable energy producers in the Baltic sea area. The Company owns 22 wind farms, 38 solar power plants, 4 cogeneration plants, a pellet plant and a hydroelectric plant located in Estonia, Latvia, Lithuania and Poland. As of the end of 2021, the Group had a total installed electricity production capacity of 457 MW and a total installed heat production capacity of 81 MW. During 2021, the Company produced 1193 GWh of electricity and 618 GWh of heat.