Today, on 29 August, Latvenergo Group published its unaudited condensed interim consolidated financial statements for the first six months of 2025.
In the first half of 2025, Latvenergo generated 24% of the electricity produced in the Baltic states, but overall generation at the production facilities of the Group decreased by 26% year-on-year. This was determined by generation at the Daugava hydropower plants (HPPs) – it decreased by 36% compared to the first half of 2024. Generation of electricity at the combined heat and power plants (CHPPs) of Latvenergo AS has also seen a 7% decrease, while electricity generation at new solar and wind power plants has increased almost fivefold. As part of the growth strategy in the regional sector of electricity generation from renewable energy sources, investments increased 2.2 times, reaching EUR 392 million.
Latvenergo sold 4,071 GWh of electricity and natural gas to its customers in the Baltic states, which accounts for a 3% year-on-year increase. Meanwhile, the number of electricity customers of Elektrum increased by 3%, and natural gas customers – by 20%.
Due to the reduction in generation by the Daugava HPPs and the developments affecting market conditions, the revenue of Latvenergo Group is 11% lower and EBITDA – 31% lower than in the same period last year, reaching EUR 847 million and EUR 272 million, respectively.
In the reporting period, the main factors affecting the results of Latvenergo AS included lower inflow into the Daugava River and, respectively, lower volumes of electricity produced by the Daugava HPPs, as well as a drop in electricity and natural gas consumption in the Baltic states due to warmer weather conditions, combined with lower sales prices of energy.
During the reporting period, the amount of electricity generated by the Daugava HPPs decreased by 36% compared to the first half of 2024, reaching 1,647 GWh. The decrease in electricity generation at the Daugava HPPs is mainly explained by the comparatively high inflow in the Daugava River during the first half of 2024, which resulted in the third highest first half-year generation output in history. This year, however, lower inflow in the Daugava River decreased electricity generation at the Daugava HPPs.
Adapting to market conditions, the CHPPs of Latvenergo AS generated 887 GWh of electricity, which is 7% less than a year earlier. Meanwhile, due to warmer weather conditions, the Group’s heat production decreased by 12% to 916 GWh. In the same period, the electricity generated by Latvenergo accounted for 24% of the total electricity generation in the Baltic states, and 66% of electricity was generated from renewable energy sources. The renewable sources portfolio is increasingly complemented by new capacities of SPPs and WPPs, which generated 57 GWh of electricity in the first half of the year – almost five times more than a year ago. Overall, electricity generation at all production facilities of Latvenergo saw a 26% drop year-on-year, reaching 2,603 GWh.
In the first half of 2025, electricity consumption in the Baltic states decreased by 2% and natural gas consumption – by 7% compared to the same period a year earlier. Despite the drop in consumption during this period, the overall retail energy sales in the Baltic states increased by 3%, reaching 4,071 GWh. The number of electricity customers of Elektrum also increased by 3%, and that of natural gas customers – by 20%. The Group continues to strengthen its positions in the strategically important household and small business segments by selling almost half of its retail electricity outside Latvia. Latvenergo sold 1,540 GWh of electricity outside Latvia, while total electricity sales reached 3,182 GWh, which is 5% less than in the same period last year. Although natural gas consumption in the Baltic states continues to decline, natural gas sales of Latvenergo increased by 44% and reached 889 GWh.
In the first half of 2025, the investments reached EUR 392 million, which is 2.2 times more than in the same period a year earlier. At the end of the reporting period, the newly built RES capacity in the Baltic states already reached 179 MW, and there are solar and wind farms with a total capacity of 965 MW under design or construction in the Baltic states. This brings the total approved portfolio of new RES projects to 1,144 MW. On 22 May 2025, the foundation stone was laid for an ambitious investment project of Latvenergo – the Laflora Energy wind farm, which will start generating electricity in the summer of 2026. Meanwhile, in June, Akmene WPP, with a total capacity of 19.6 MW, was commissioned in Lithuania. These and other RES projects of Latvenergo Group contribute to the achievement of the objectives of its strategy for 2022–2026 by investing in new solar and wind power plant capacities. As much as 3/4 of the total investment during the reporting period, or EUR 291 million, was made into these capacities. The largest projects include the construction of Aizpute SPP in Latvia (265 MW); Pienava Wind WPP in Latvia (147 MW); Telšiai WPP in Lithuania (124 MW); and Laflora Energy WPP in Latvia (109 MW). The aforementioned Pienava Wind WPP project (147 MW), which will start generating electricity in 2027, was acquired by Latvenergo AS in June, and the estimated construction investment in the project is around EUR 215 million.
The reduction in electricity generated by the Daugava HPPs, as well as the 18% drop in retail electricity prices, has affected the results of Latvenergo Group. The revenue of the Group is 11% lower, reaching EUR 847 million. EBITDA is EUR 272 million, or a 31% drop, and the profit for the period is EUR 135 million, which is a 46% drop year-on-year.
At the end of the reporting period, the Finnish-Estonian interconnector Estlink 2 returned to service after deliberate damage in late 2024, which limited electricity imports from the Nordic countries.
After the end of the reporting period, in July 2025, Latvenergo AS and Latvijas Valsts radio un televīzijas centrs VAS signed a Memorandum of Understanding with Telia Company AB, which provides the option to consider the acquisition of a portion of the shares in its subsidiaries Tet SIA and Latvijas Mobilais Telefons SIA.
The unaudited condensed interim financial statements of Latvenergo Group for the first 9 months of 2025 will be published on 28 November 2025.
LATVENERGO GROUP KEY PERFORMANCE INDICATORS
Operational figures
| 1H 2025 | 1H 2024 | ||
| Electricity customers | thsd. | 911 | 884 |
| Total electricity sales | GWh | 4,522 | 5,345 |
| Retail* | GWh | 3,182 | 3,341 |
| Wholesale** | GWh | 1,340 | 2,004 |
| Natural gas customers | thsd. | 70 | 59 |
| Total natural gas sales | GWh | 1,283 | 1,333 |
| Retail | GWh | 889 | 619 |
| Wholesale | GWh | 394 | 714 |
| Electricity generation | GWh | 2,603 | 3,531 |
| Thermal energy generation | GWh | 916 | 1,045 |
| Number of employees | 3,400 | 3,492 | |
| Moody’s credit rating | Baa2 (stable) | Baa2 (stable) | |
* Including operating consumption
** Including sale of energy purchased within the mandatory procurement on the Nord Pool
Financial figures*
million EUR
| 1H 2025 | 1H 2024 | ||
| Revenue | 847.1 | 955.4 | |
| EBITDA | 271.7 | 393.7 | |
| Profit for the period | 135.3 | 252.5 | |
| Assets | 4,471.3 | 4,107.9 | |
| Equity | 2,969.5 | 2,995.6 | |
| Net debt | 843.1 | 512.2 | |
| Adjusted funds from operations (FFO) | 177.7 | 301.8 | |
| Capital expenditure | 391.8 | 174.8 |
* Information about the financial indicators and coefficients used by the Latvenergo Group is available in the Latvenergo Group's consolidated and Latvenergo AS Unaudited Condensed Interim Financial Statements for the first 6 months of 2025 – see the section “Formulas”.
Financial ratios*
| 1H 2025 | 1H 2024 | ||
| Return on equity (ROE) | 5.2% | 13.1% | |
| Adjusted FFO / net debt | 57% | 109% | |
| Net debt / EBITDA | 1.5 | 0.7 | |
| EBITDA margin | 29% | 36% | |
| Return on assets (ROA) | 3.6% | 9.2% | |
| Net debt / equity | 28% | 17% |
* Information about the financial indicators and coefficients used by the Latvenergo Group is available in the Latvenergo Group's consolidated and Latvenergo AS Unaudited Condensed Interim Financial Statements for the first 6 months of 2025 – see the section “Formulas”.
Consolidated Statement of Profit or Loss*
EUR'000
| 01/01-30/06/2025 | 01/01-30/06/2024 | |
| Revenue | 847,068 | 955,423 |
| Other income | 15,711 | 15,415 |
| Raw materials and consumables | (477,369) | (467,797) |
| Personnel expenses | (80,934) | (76,425) |
| Other operating expenses | (32,820) | (32,890) |
| EBITDA | 271,656 | 393,726 |
| Depreciation, amortisation and impairment of intangible assets, property, plant and equipment (PPE) and right–of–use assets | (88,636) | (86,582) |
| Operating profit | 183,020 | 307,144 |
| Finance income | 5,257 | 9,208 |
| Finance costs | (9,412) | (11,584) |
| Profit before tax | 178,865 | 304,768 |
| Income tax | (43,598) | (52,280) |
| Profit for the period | 135,267 | 252,488 |
| Profit attributable to: | ||
| – Equity holder of the Parent Company | 134,281 | 251,368 |
| – Non–controlling interests | 986 | 1,120 |
* The Latvenergo Consolidated Unaudited Condensed Interim Financial Statements for the first 6 months of 2025 are prepared in accordance with the IFRS Accounting Standards as adopted by the European Union
Consolidated Statement of Financial Position*
EUR'000
| 30/06/2025 | 31/12/2024 | |||
| ASSETS | ||||
| Non–current assets | ||||
| Intangible assets | 113,358 | 105,566 | ||
| Property, plant, and equipment | 3,817,372 | 3,523,090 | ||
| Right–of–use assets | 31,155 | 31,910 | ||
| Investment property | 1,972 | 2,098 | ||
| Non–current financial investments | 613 | 82 | ||
| Non–current loans to related parties | 23,226 | 22,244 | ||
| Other non–current receivables | 512 | 540 | ||
| Deferred income tax assets | 1,085 | 1,857 | ||
| Derivative financial instruments | 1,827 | 2,124 | ||
| Total non–current assets | 3,991,120 | 3,689,511 | ||
| Current assets | ||||
| Inventories | 221,038 | 169,562 | ||
| Current intangible assets | 28,599 | 54,616 | ||
| Receivables from contracts with customers | 141,573 | 190,108 | ||
| Other current receivables | 25,895 | 32,928 | ||
| Deferred expenses | 4,097 | 3,196 | ||
| Prepayment for income tax | 1,021 | 491 | ||
| Derivative financial instruments | 8,965 | 1,298 | ||
| Other current financial investments | – | 209,842 | ||
| Cash and cash equivalents | 49,006 | 86,554 | ||
| Total current assets | 480,194 | 748,595 | ||
| TOTAL ASSETS | 4,471,314 | 4,438,106 | ||
| EQUITY AND LIABILITIES | ||||
| EQUITY | ||||
| Share capital | 1,076,324 | 790,368 | ||
| Reserves | 1,671,715 | 1,660,068 | ||
| Retained earnings | 214,954 | 549,328 | ||
| Equity attributable to equity holder of the Parent Company | 2,962,993 | 2,999,764 | ||
| Non–controlling interests | 6,534 | 7,162 | ||
| Total equity | 2,969,527 | 3,006,926 | ||
| LIABILITIES | ||||
| Non–current liabilities | ||||
| Borrowings | 731,337 | 615,280 | ||
| Lease liabilities | 29,409 | 29,828 | ||
| Deferred income tax liabilities | 3,949 | 8,003 | ||
| Provisions | 18,250 | 17,113 | ||
| Deferred income from contracts with customers and advances received | 149,716 | 150,842 | ||
| Other deferred income | 110,920 | 112,408 | ||
| Other non–current liabilities | 21,489 | 21,592 | ||
| Total non–current liabilities | 1,065,070 | 955,066 | ||
| Current liabilities | ||||
| Borrowings | 160,723 | 128,125 | ||
| Lease liabilities | 2,792 | 2,723 | ||
| Trade and other payables | 178,365 | 210,487 | ||
| Deferred income from contracts with customers and advances received | 44,516 | 48,700 | ||
| Other deferred income | 25,083 | 25,104 | ||
| Provisions | 23,986 | 48,010 | ||
| Derivative financial instruments | 1,252 | 12,965 | ||
| Total current liabilities | 436,717 | 476,114 | ||
| Total liabilities | 1,501,787 | 1,431,180 | ||
| TOTAL EQUITY AND LIABILITIES | 4,471,314 | 4,438,106 |
* The Latvenergo Consolidated Unaudited Condensed Interim Financial Statements for the first 6 months of 2025 are prepared in accordance with the IFRS Accounting Standards as adopted by the European Union
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 29 453 897
E-mail: investor.relations@latvenergo.lv
About Latvenergo
Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas, development of solar and wind parks in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas, development of solar and wind parks in Lithuania), Elektrum Next SIA (development of solar and wind parks), Laflora Energy SIA (development of wind park), DSE Aizpute Solar SIA (development of solar park), Latvijas vēja parki SIA (development of wind parks), Telšiu vejo parkas, UAB (development of wind park in Lithiania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.