Sales Revenues and Profitability - The energy market faced challenges in Q3 2025, with sales revenue declining to EUR 282.7 million, a 27% decrease year-on-year. EBITDA fell to EUR 27.9 million (-31% year-on-year), and the reported net loss for the quarter was EUR 66.0 million [1][2] - Adjusted EBITDA, excluding temporary fair-value changes, was EUR 32.5 million, down 25% year-on-year. The adjusted net loss was EUR 61.4 million, which included impairments of EUR 39 million for shale oil production assets [1][2] Market Conditions - Lower profitability was attributed to declining electricity prices in the Baltics and reduced shale-oil sales volumes due to maintenance shutdowns. However, the distribution segment showed strong performance [2] - The CFO highlighted significant developments in the Baltic energy sector, including desynchronization from the Russian grid, which enhances energy independence and creates opportunities for Eesti Energia [3] Strategic Developments - The company plans to focus on completing ongoing developments and improving efficiency throughout 2025, with structural changes set to take effect in 2026, introducing three business lines: Distribution, Electricity, and Industry [4] - The strategic direction aims to establish a balanced portfolio of renewable generation, dispatchable power, and flexibility services to ensure reliable service and long-term value creation [5] Renewable Generation and Electricity Sales - Sales revenue from renewable generation and electricity sales decreased to EUR 152.6 million, a 31% decline year-on-year, primarily due to lower market prices despite stable sales volumes [5] - Renewable electricity output increased by 5% to 369 GWh, driven by new wind farms, while retail electricity sales volumes decreased by 6% [6] Non-Renewable Electricity Production - Revenue from non-renewable electricity production dropped by 60% year-on-year to EUR 15.4 million, with production from oil-shale-based units down 83% due to maintenance and low market prices [7] - The segment EBITDA was EUR -6.6 million, marking a decline compared to the previous year [8] Distribution Segment - Distribution service revenue increased by 12% year-on-year to EUR 73.1 million, supported by a 4% increase in sales volume [11] - Distribution EBITDA improved significantly to EUR 27.4 million (+55% year-on-year), driven by higher margins and increased sales volume [11] Shale Oil Segment - The shale-oil segment experienced a 69% decrease in sales revenue to EUR 11.6 million, with sales volume down 60% to 37 thousand tonnes [12] - Segment EBITDA was EUR -6.2 million, reflecting lower margins and significantly reduced sales volumes [13] Other Products and Services - Revenue from other products and services increased by 11% year-on-year to EUR 30.0 million, driven by growth in flexibility and frequency-reserve services [14] - EBITDA for this segment rose to EUR 4.3 million, with notable increases in flexibility services [15] Investments - The Group's investments in Q3 2025 totaled EUR 104.4 million, a 37% decrease year-on-year, as large renewable projects near completion [16] - Distribution-network investments reached EUR 40.7 million, supporting upgrades and reliability improvements [17] Financing and Liquidity - The Group's borrowings at the end of Q3 2025 amounted to EUR 1.637 billion, with a strong liquidity buffer of EUR 644 million [18] - Key financing developments included the acquisition of the remaining 2.8% stake in Enefit Green, leading to its delisting [19] Future Outlook - The Group is preparing for a transformation starting in 2026, which will enhance profitability and competitiveness through a simplified structure [22] - Strategic changes are expected to drive earnings growth and strengthen cash flows while supporting the transition to a carbon-neutral energy system [23]