Eesti Energia Group Unaudited Results for 2025

Sales Revenues and Profitability - In 2025, the Baltic energy sector faced significant developments and challenges impacting energy security and prices, leading to increased market volatility [1] - Sales revenue totaled EUR 1,646.9 million, an 8% decrease year-on-year, while EBITDA declined to EUR 317.2 million, a 20% decrease year-on-year [2] - The reported net loss for the year was EUR 82.6 million, which included asset impairments of EUR 197.6 million, primarily related to oil production assets [2] - Despite the net loss, the underlying business remained profitable, with profit excluding the impairment amounting to EUR 111.9 million [2] Renewable Generation and Electricity Sales Segment - Sales revenue from renewable generation and electricity sales amounted to EUR 751.5 million, a 17% decrease year-on-year, mainly due to declining market prices [6] - Renewable electricity generation increased by 6% to 2.3 TWh, with wind farms contributing the largest share [7] - EBITDA from renewable energy and electricity sales was EUR 87.2 million, a 46% decrease year-on-year, primarily due to lower electricity market prices [8] Non-Renewable Electricity Production - Revenue from non-renewable electricity production declined by 15% to EUR 174.8 million, with production down 18% to 1.4 TWh [11] - The segment's EBITDA for 2025 was EUR -13.3 million, significantly impacted by lower market prices [12] - Fossil-based generation facilities remain critical for strategic power generation and frequency services, with new regulations expected to provide compensation for maintaining capacity [13] Distribution Segment - Distribution service revenue increased by 5% year-on-year to EUR 321.5 million, with stable sales volume [14] - Distribution EBITDA improved to EUR 132.3 million, driven by increased distribution tariffs and reduced fixed costs [14] Shale Oil Segment - The shale oil segment's sales revenue decreased by 16% to EUR 150.0 million, with production down 16% to 378.4 thousand tonnes [15][16] - Segment EBITDA was EUR 47.3 million, down 59% year-on-year, primarily due to lower sales prices and volumes [17] Other Products and Services - Revenue from other products and services increased by 28% to EUR 249.1 million, driven by strong growth in frequency services [18] - EBITDA for the segment increased to EUR 63.7 million, significantly impacted by the exceptional market situation in the first half of the year [19] Investments - The Group's investments in 2025 totaled EUR 459.2 million, a 37% decrease year-on-year, with a focus on renewable energy projects [20] - Investments in distribution network reliability and connections amounted to EUR 102.6 million and EUR 65.2 million, respectively [21] - Investments into a new shale oil plant totaled EUR 47.5 million, nearing completion [22] Financing and Liquidity - The Group's borrowings at the end of 2025 amounted to EUR 1,612 million, with liquid assets of EUR 358 million [23][24] - Key financing developments included a EUR 50 million retail bond issue and a EUR 100 million share capital increase approved by the Government of Estonia [25] Outlook - The financial performance in 2026 will be influenced by energy market developments, regulatory changes, and macroeconomic conditions [24][26]