Net profit of Eesti Energia increases to 106 mEUR in 2018

The sales revenue of state-owned energy company Eesti Energia grew by 16% on year to €875 million in 2018, while the company’s net profit rose by 5% to €106 million.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to €283 million, which is 7% more than the year before, Eesti Energia said.

Andri Avila, the company’s chief financial officer, called the result “satisfactory”.

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The production of heat rose by 30 pct compared to January last year

According to Statistics Estonia, in January 2019, the production of industrial enterprises increased by 5% compared to January 2018. Production increased in manufacturing and energy, but decreased in mining.

In January, the total production in manufacturing was 4% higher compared to the corresponding month of 2018. In January, over a half of the branches of industry exceeded the volume of the same month of the previous year. The growth in production was mostly due to an increase in the manufacture of computers and electronic products, manufacture of food products and electrical equipment. Among the branches of industry with larger shares, production fell in the manufacture of wood and fabricated metal products.

In January, 69% of the total production of manufacturing was sold to the external market. According to unadjusted data, compared to January 2018, sales of manufacturing production for exports increased by 6% and sales to the domestic market by 2%.

In January 2019, compared to December, the seasonally adjusted total industrial production increased by 1%. The production of manufacturing remained at the same level.

Compared to January 2018, the production of electricity increased by 3% and the production of heat rose by 30%.

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Production of industrial enterprises increased 3pct in November

According to Statistics Estonia, in November 2017, the production of industrial enterprises increased 3% compared to November 2016. Production increased in mining and quarrying and manufacturing, but decreased in the energy sector.

In November, manufacturing production was 4% higher compared to the corresponding month of 2016. The growth in production was mostly due to an increase in the manufacture of wood products, food products, machinery, metal products and electrical equipment. Production increased considerably also in the manufacture of motor vehicles. Among the branches of industry with larger shares, production fell in the manufacture of electronic equipment.

In November, 67% of the total manufacturing production was sold to the external market. According to unadjusted data, sales of manufacturing production for exports increased 4% and sales to the domestic market increased 9% compared to November 2016.

In November 2017, the seasonally adjusted total industrial production as well as production in manufacturing decreased 1% compared to the previous month.

Compared to November 2016, the production of electricity decreased 9% and the production of heat decreased 11%.

Volume index of production in manufacturing and its trend, January 2008 – November 2017 (2010 = 100)

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Electricity production increased 17 pct in 2016 compared to 2015

According to Statistics Estonia, in 2016, the production of electricity totalled 12 terawatt-hours, which is 17% more than in the previous year. Electricity production from renewable sources decreased 6% compared to 2015.

A contributor to growth in production was a colder winter, which increased demand among enterprises and inhabitants. Domestic consumption of electricity increased 3% in 2016, year over year. Although electricity exports decreased 12% compared to 2015, Estonia is still a net exporting country where production exceeds consumption. The growth in production was also affected by a 30% decline in imports.

While until 2015 electricity production from renewable sources increased, in 2016 renewable energy production decreased for the first time. The total production of renewable energy declined 6% compared to 2015, and the biggest decrease (15%) was in the production of wind energy. As a result of improvements in waste management in recent years, biogas generated in landfills and water treatment plants can be used for electricity production. Whereas in 2015 biogas-based electricity was produced for the power network in the amount of 50 gigawatt-hours, in 2016 it was 45 gigawatt-hours, which is 10% less.

In 2016, the production of oil shale was nearly 16 million tonnes, which is approximately a fifth less than in the previous year. The majority of oil shale is consumed in power plants, and over 80% of electricity was generated from oil shale. In addition to electricity production, oil shale is also used as raw material for shale oil. 740,000 tonnes of shale oil was produced in 2016. Approximately 90% of the production was exported, and the main destination countries were Belgium (35%), the Netherlands (31%) and Sweden (13%).

Wood pellets are a new and important type of fuel on the energy market. During the last five years their production has increased more than three times. In 2016, wood pellets were produced in the amount of approximately 1.2 million tonnes, which is 30% more compared to 2015. Due to consistent demand, more than 95% of production of wood pellets was exported. The major destination countries were Denmark (52%), the United Kingdom (22%) and the Netherlands (12%).

For domestic consumption purposes, natural gas, liquid fuels, coal and coke were imported in 2016. The imports of natural gas increased approximately 10% year over year, and this was mainly due to the demand of power plants. Domestic consumption of motor gasoline increased  approximately 7%, while the consumption of diesel fuel decreased 2%.

Electricity production from renewable sources, 2005–2016

For the statistical activity “Energy consumption and production (annual)”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia performs this statistical activity.

Source: Statistics Estonia

Production increased in the energy sector

According to Statistics Estonia, in April 2017, the production of industrial enterprises increased 10% compared to April of the previous year. Production increased in the energy sector, mining and quarrying as well as manufacturing.

In April, manufacturing production was 8% higher compared to the corresponding month of 2016. Production growth was broad-based – in April, production surpassed the volume of April 2016 in two-thirds of the branches of industry. The growth in production was mostly due to an increase in the manufacture of wood, metal and food products and electrical equipment. Production increased also in the manufacture of motor vehicles and building materials. Among the branches of industry with larger shares, production fell in the manufacture of electronic products, furniture and textiles.

In April, 67% of the total production of manufacturing was sold to the external market. According to unadjusted data, the sales of manufacturing production for export decreased 3% and sales to the domestic market rose 5% compared to April 2016. In April 2017, there were two working days less than in April 2016.

In April 2017 compared to the previous month, the seasonally adjusted total industrial production remained on the level of the previous month; however, production in manufacturing fell by 1%.

Compared to April 2016, the production of electricity increased 22% and the production of heat 19%.Volume index of production in manufacturing and its trend

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Eesti Energia to refine oil shale gas to gasoline

Eesti Energia is looking for a contractor to build the equipment needed to refine oil shale gas to gasoline. To this end, the company has announced a tender and invited qualified companies around the world to bid.

The equipment to be built will be an addition to Eesti Energia’s existing shale oil plants, and is expected to increase the company’s liquid fuel production by 10%.

The invitation to bid has gone out to companies that are pre-qualified in the sense that they have experience building the necessary processing tools. The winner of the bid is expected to be announced in the first half of 2017, which is when Eesti Energia will make the final decision whether or not to invest.

If that decision is positive, construction will likely begin in 2019.

Source: ERR News

Eesti Energia considers building new oil plant if oil prices rise further

Energy firm Eesti Energia is proposing building a second Enefit280 shale oil refinery if the price of crude oil on the world market reaches 60-65 dollars per barrel, said Chairman of the Board Hando Sutter.

Brent crude oil is currently priced at less than 50 dollars per gallon, reported ETV’s news broadcast “Aktuaalne kaamera.”

According to Sutter, Eesti Energia’s three existing oil refineries are already working at full capacity; every hour, more than 60 tons, or one tank car’s worth, of oil is produced, the majority of which is exported.

“We are developing our technology in such a way that new investments would be possible if the price of oil were in the range of 60-65 dollars per barrel,” explained Sutter. “As [oil prices are] a bit below 50 dollars per barrel today, we are a bit short, but if oil prices should rise, then we are prepared to offer our owners new investments upon which to decide.”

Source: ERR News