Eesti Energia Group Unaudited Results for Q3 2025
Sales Revenues and Profitability
The energy market remained challenging in Q3 2025, reflecting falling electricity and shale oil prices. Availability of oil-shale-based assets was also limited due to maintenance and technical restrictions. As a result, in Q3 2025 sales revenue totalled EUR 282.7 million, a 27% decrease year-on-year. EBITDA declined to EUR 27.9 million (-31% year-on-year), while adjusted EBITDA, excluding temporary fair-value changes of long-term PPA derivatives, totalled EUR 32.5 million (-25% year-on-year). Reported net loss for the quarter was EUR 66.0 million, with adjusted net loss at EUR 61.4 million, including impairments of EUR 39 million recognised for shale oil production assets.
Lower profitability mainly reflected the decline in electricity prices across the Baltics and the exceptionally low shale-oil sales volumes caused by maintenance shutdown. At the same time, the distribution segment continued to demonstrate strong and stable performance.
*Adjusted EBITDA and adjusted net profit exclude temporary fluctuations in the fair value of long-term Power Purchase Agreement (PPA) derivatives to enable better period-to-period comparability.
CFO Marlen Tamm commentary:
„Despite a challenging energy market, the year 2025 has brought significant developments to the Baltic energy sector. The desynchronisation from the Russian grid marked a major step towards energy independence. In the new market environment, the need for dispatchable capacity and system flexibility is increasing, creating new opportunities for Eesti Energia.
Following record-high investment levels in previous years, our focus throughout 2025 remains on completing ongoing developments and improving efficiency. To further strengthen profitability and streamline operations, structural changes are being prepared that will take effect from 2026, introducing three business lines – Distribution, Electricity, and Industry. This transformation will create a more focused and efficient organisation, better positioned to deliver on our strategic goals. Near completion renewable energy projects and the launch of the new liquid fuels plant will provide an additional layer for future earnings.
Although electricity prices remain low and volatile, our strategic direction remains on establishing a balanced portfolio combining renewable generation, dispatchable power and flexibility services. This approach ensures reliable service for our customers and long-term value creation for our investors.”
Renewable Generation and Electricity Sales Segment
Sales revenue from renewable generation and electricity sales amounted EUR 152.6 million, a 31% decrease year-on-year, mainly due to a substantial decline in market prices despite relatively stable sales volumes.
Renewable electricity output increased by 5% (16 GWh) to 369 GWh, driven primarily by the new Sopi-Tootsi wind farm in Estonia and Kelmė I and II wind farms in Lithuania, which together contributed 107 GWh of additional generation (+93 GWh year-on-year). Retail electricity sales volumes decreased by 6% indicating a mild dip in customer demand. EBITDA from renewable energy and electricity sales amounted EUR 8.9 million (-72% year-on-year). The decrease mainly resulted from lower electricity prices and significantly higher balancing costs, which reflected the immaturity of the frequency markets.
Non-Renewable Electricity Production
Revenue from non-renewable electricity production declined by 60% year-on-year to EUR 15.4 million, mainly due to the decrease in production volume. Production from oil-shale-based and other fossil-fuel units totalled 57 GWh, down 83% year-on-year, as the Auvere power plant underwent a major overhaul and market conditions limited dispatchable generation due to low market prices.
Segment EBITDA was EUR -6.6 million, compared to EUR -5.1 million a year earlier. The amount of oil shale used in the third quarter of 2025 was the lowest in the Group’s history.
Despite weaker results this quarter, fossil-based generation facilities remain critical strategic assets, providing both power generation and frequency services. Notably, Estonia currently lacks a compensation mechanism for maintaining strategic reserve power services, meaning Eesti Energia has been providing this functionality at no cost. However, a new regulation effective 1 January 2026 will enable the Transmission System Operator (TSO), Elering, to procure reserves to ensure region’s energy security, creating a new revenue opportunity.
Distribution Segment
Distribution service revenue increased by 12% year-on-year to EUR 73.1 million, supported by a 4% increase in sales volume to 1.41 TWh and higher average network charges.
Distribution EBITDA improved strongly to EUR 27.4 million (+55% year-on-year), driven by a higher margin and increased sales volume. Variable costs declined thanks to lower electricity purchase prices and reduced network losses, which stood at 4.2% of distributed electricity.
Shale Oil Segment
The shale-oil segment was heavily affected by unexpected maintenance outages and lower fuel market prices. Sales revenue amounted to EUR 11.6 million, a 69% decrease year-on-year, as sales volume decreased by 60% to 37 thousand tonnes.
The average sales price fell by 16% year-on-year to EUR 347.7 per tonne. When including the impact of positive derivative results (EUR 64.9 per tonne), the effective sales price averaged EUR 412.6 per tonne, representing an 11% increase compared to last year.
Production reached 42 thousand tonnes (-52% year-on-year), reflecting the general overhaul of Enefit 280-1. Segment EBITDA was EUR -6.2 million (EUR -10.7 million year-on-year), as lower margins (EUR -3.6 million) and significantly lower sales volumes (EUR -13.1 million) outweighed the positive impact from lower fixed costs (EUR +6.5 million) and improved realised derivative gains (EUR +6.1 million).
Other Products and Services
Revenue from other products and services increased by 11% year-on-year to EUR 30.0 million, mainly driven by strong growth in flexibility and frequency-reserve services (EUR +7.0 million year-on-year).
EBITDA for the segment increased to EUR 4.3 million, up EUR 13.2 million year-on-year. Compared to the same period in 2024, natural gas EBITDA increased by EUR 5.0 million. The main factor was variable costs, which were very high in the third quarter of 2024 but normalised in 2025. Heat EBITDA decreased by EUR 3.0 million. EBITDA from flexibility services increased by EUR 11.3 million.
Investments
The Group’s investments in Q3 2025 totalled EUR 104.4 million, -37% (EUR -60.0 million year-on-year), as large renewable projects are nearing its completion. Investments in renewable energy amounted to EUR 27.8 million (-64% year-on-year), focusing on wind-farms in Estonia and Lithuania and the Strzałkowo solar project in Poland.
Distribution-network investments reached EUR 40.7 million (EUR +6.1 million year-on-year), supporting the continued conversion to weatherproof cabling and reliability upgrades. Investments into the new shale-oil plant (Enefit 280-2) totalled 5.4 million. The plant is expected to be operational by 26Q1.
Financing and Liquidity
The Group’s borrowings at the end of the third quarter of 2025 amounted to EUR 1.637 million (end of Q2 2025: EUR 1.731 million). The Group’s borrowings consisted of borrowings of the parent company of EUR 875 million and those of the subsidiary Enefit Green of EUR 736 million. At the end of the 25Q3, the Group had strong liquidity buffer of EUR 644 million. Group had EUR 224 in cash, undrawn loans of EUR 420 million, of which EUR 270 million was attributable to the parent company and EUR 150 million to Enefit Green AS.
Key financing developments during the quarter included:
- The remaining 2.8% stake in Enefit Green was acquired in the first half of the third quarter of 2025. As a result, Enefit Green AS was delisted on 4 August 2025.
- In September 2025, Eesti Energia has withdrawn its rating with S&P.
Current credit ratings:
- Fitch: BBB-, Outlook: Stable
- Moody’s: Baa3, Outlook: Negative
Outlook
The Group continues to focus on completing key renewable projects, finalising the Enefit 280-2 plant and investing in the distribution network, which remains the Group’s most resilient business line. The Electricity Market Amendment Act, effective from 2026, will further support dispatchable generation to ensure region’s energy security. That will provide a mechanism to cover the fixed costs of oil-shale-based power plants from 2026 onwards.
Looking ahead, Eesti Energia is preparing for a new phase of transformation that will further strengthen profitability and competetiveness. Starting from 2026, the Group will operate under three business lines – Distribution, Electricity, and Industry – within the Enefit brand, creating a simplified and integrated structure. This reorganisation, together with the full acquisition of Enefit Green in 2025, will enable stronger coordination of generation, trading and retail activities, as well as efficiency gains across industrial operations.
These strategic and structural changes lay the foundation for a more resilient, efficient and profitable business. From 2026 onward, these changes are expected to drive earnings growth, strengthen cash flows and support the Group’s investment-grade credit profile while advancing the region’s transition to a carbon-neutral energy system.
Key financial information
Condensed Consolidated Interim Income Statement
| 3rd Quarter | 9 months | |||
| in million EUR | 2025 | 2024 | 9m 2025 | 9m 2024 |
| Revenue | 282.7 | 387.6 | 1,184.4 | 1,303.0 |
| Other operating income | 4.2 | 33.6 | 46.2 | 126.8 |
| Change in inventories of finished goods and work-in-progress | 22.0 | (0.5) | 13.1 | 6.8 |
| Raw materials and consumables used | (207.4) | (306.3) | (789.9) | (836.7) |
| Payroll expenses | (46.3) | (45.9) | (146.1) | (142.9) |
| Depreciation, amortisation and impairment | (81.8) | (41.5) | (163.6) | (120.7) |
| Other operating expenses | (27.3) | (27.9) | (89.0) | (135.5) |
| OPERATING PROFIT/(LOSS) | (53.9) | (0.9) | 55.1 | 200.8 |
| Financial income | 2.2 | 2.4 | 7.5 | 5.4 |
| Financial expenses | (15.9) | (10.8) | (45.7) | (35.1) |
| Net financial income (expense) | (13.7) | (8.4) | (38.2) | (29.7) |
| Profit from associates under the equity method | (5.5) | 0.7 | 1.0 | 3.8 |
| PROFIT/(LOSS) BEFORE TAX | (73.1) | (8.6) | 17.9 | 174.9 |
| Corporate income tax expense | 7.1 | 0.2 | 13.1 | (1.6) |
| PROFIT/(LOSS) FOR THE PERIOD | (66.0) | (8.4) | 31.0 | 173.3 |
Condensed Consolidated Interim Statement of Financial Position
| in million EUR | 30 September 2025 | 31 December 2024 |
| Non-current assets | ||
| Property, plant and equipment | 3,716.3 | 3,563.8 |
| Right-of-use assets | 27.8 | 27.9 |
| Intangible assets | 95.4 | 93.5 |
| Prepayments for non-current assets | 60.5 | 61.1 |
| Deferred tax assets | 6.0 | 4.2 |
| Derivative financial instruments | 159.1 | 213.3 |
| Investments in associates | 67.8 | 74.9 |
| Other shares and holdings | 0.3 | 0.3 |
| Non-current receivables | 3.6 | 3.3 |
| Total non-current assets | 4,136.8 | 4,042.3 |
| Current assets | ||
| Inventories | 168.2 | 172.0 |
| Greenhouse gas allowances and certificates of origin | 37.2 | 74.5 |
| Trade and other receivables | 222.9 | 282.2 |
| Derivative financial instruments | 50.5 | 90.0 |
| Cash and cash equivalents | 223.5 | 468.9 |
| Total current assets | 702.3 | 1,087.6 |
| Total assets | 4,839.1 | 5,129.9 |
| in million EUR | 30 September 2025 | 31 December 2024 |
| EQUITY | ||
| Total equity and reserves attributable to equity holder of the Parent Company | ||
| Share capital | 846.6 | 746.6 |
| Unregistered share capital | 259.8 | 259.8 |
| Share premium | 75.0 | 75.0 |
| Statutory reserve capital | 422.1 | 398.5 |
| Perpetual bond | 102.7 | 160.2 |
| Other reserves | 504.9 | 565.5 |
| Retained earnings | 846.6 | 746.6 |
| Total equity and reserves attributable to equity holder of the Parent Company | 2,211.1 | 2,205.6 |
| Non-controlling interest | 2.3 | 177.8 |
| Total equity | 2,213.4 | 2,383.4 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Borrowings | 1,429.0 | 1,498.7 |
| Deferred tax liabilities | 13.3 | 28.0 |
| Other payables | 8.8 | 8.0 |
| Derivate financial instruments | 3.9 | 4.4 |
| Contract liabilities and government grants | 507.7 | 467.9 |
| Provisions | 40.3 | 39.0 |
| Total non-current liabilities | 2,003.0 | 2,046.0 |
| Current liabilities | ||
| Borrowings | 219.6 | 197.0 |
| Liquidity swap | 31.0 | 79.8 |
| Trade and other payables | 271.9 | 267.5 |
| Derivative financial instruments | 9.9 | 22.6 |
| Contract liabilities and government grants | 3.0 | 2.0 |
| Provisions | 87.3 | 131.6 |
| Total current liabilities | 622.7 | 700.5 |
| Total liabilities | 2,625.7 | 2,746.5 |
| Total liabilities and equity | 4,839.1 | 5,129.9 |
Eesti Energia will publish its unaudited Q3 2025 results on 7 November 2025. The Q3 2025 interim report and investor presentation are available on Eesti Energia’s website. An investor call discussing the Q3 2025 financial results will take place on 7 November 2025 at 11:00 London time, 12:00 Frankfurt time, and 13:00 Tallinn time. Please join the conference call using the following link.
Further Information:
Danel Freiberg
Head of Treasury and Financial Risk Management
Eesti Energia AS
Tel: +372 5594 3838
Email: danel.freiberg@energia.ee
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