Sales Revenues and Profitability
In a challenging energy market marked by declining electricity and oil prices, Eesti Energia Group’s sales revenue in Q2 2025 totalled EUR 388 million. Group EBITDA declined to EUR 80 million, while adjusted EBITDA* reached EUR 83 million. Reported net profit for the quarter was EUR 30 million, with adjusted net profit at EUR 33 million.
This quarter’s performance was mainly driven by falling shale oil and electricity prices. In fact, as of 25Q2, Baltic energy prices have returned to pre-energy crisis levels seen before 2022. Additionally, the 24Q2 benefited from one-off CO₂-related gains, which provided an exceptional gain to financial results at that time. In contrast, 25Q2 reflects a return to normal, resulting in lower profitability compared to 24Q2. Despite this, the ‘Other’ segment-particularly frequency services-showed strong growth in both revenue and EBITDA.
*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:
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“This quarter’s financial results were primarily influenced by shifts in the energy market. Thanks to the new wind and solar parks established over the past year, we generated more renewable energy than the year before. This helps reduce electricity prices and has a positive effect on consumers’ bills.
However, lower market prices also mean decreased revenues for energy companies, which in turn limits future investments-such as the development of new generation capacities. Low prices and significant price fluctuations have become the new normal in the energy market, a trend expected to continue in the coming years.
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To navigate this environment, energy companies must adapt. That’s why Eesti Energia has already taken steps to build an integrated energy group. By bringing together renewable energy, dispatchable generation, battery solutions, and a customer portfolio under one umbrella, we are strengthening our competitiveness in this evolving market landscape.”
Renewable Generation and Electricity Sales Segment
Sales revenue from the renewable generation and electricity sales segment decreased by 26% year-on-year to EUR 170 million. Renewable electricity production rose by 27% to 0.6 TWh, driven by new wind farms such as the Sopi-Tootsi facility, which contributes 255 MW of additional capacity compared to the previous year. Retail electricity sales volumes, however, declined by 7% to 2.1 TWh.
Segment EBITDA dropped by 64% to EUR 13 million. The main impact came from lower sales prices (EUR -29.9 million), partly due to a 20% drop in the Nord Pool Estonia area’s average price compared to Q2 2024. Lower sales volumes (EUR -7.4 million) also weighed on performance, though partially offset by reduced electricity purchasing costs (EUR +17.8 million). Adjusted EBITDA declined by 62% (EUR -25 million).
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Non-Renewable Electricity Production
Sales revenue from non-renewable electricity increased by 6% year-on-year to EUR 37.1 million. Generation rose by 2% to 0.3 TWh, largely due to the continued outage of the EstLink2 transmission cable, which required increased domestic generation. The cable, severely damaged in December 2024, had caused the loss of ~650 MW of transmission capacity between Estonia and Finland. It was reconnected on 20 June.
Segment EBITDA declined by EUR 18 million. This was driven by higher CO₂ costs (EUR -8.3 million), increased fixed costs (EUR -4.0 million), and lower derivative gains (EUR -5.3 million).
Despite weaker results, 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.
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Distribution Segment
Sales revenue from the distribution segment increased by 9% to EUR 73.7 million, supported by higher tariffs and a 2% increase in distributed volumes. Network losses and planned outages declined, while unplanned outages remained stable at a low level.
Segment EBITDA grew by 35% year-on-year. The margin impact was EUR +5.1 million, driven by a higher average sales price and lower variable costs. Increased distributed volumes contributed EUR +0.8 million, while deferred maintenance led to a EUR 1.4 million reduction in fixed costs.
Shale Oil Segment
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Sales revenue in the shale oil segment fell by 17% to EUR 43 million, mainly due to a 15% drop in sales volumes and a 20% decrease in average sales price (excluding derivatives). Including derivative gains, the average realised price was EUR 405.5/t, down just 3% year-on-year. This result reflects the effectiveness of the Group’s updated hedging strategy, which now favours financial options over swaps-providing downside protection with upside potential, especially for the commodity mainly trading in backwardation.
Shale oil production totalled 103 thousand tonnes (-7%). Segment EBITDA declined by EUR 64 million, due to the exceptional one-off benefit recorded in Q2 2024 – EUR 64.5 million in free CO₂ allowances – which did not recur this year. Excluding this, lower prices impacted EBITDA by EUR -9.6 million and lower volumes by EUR -5.7 million. On the positive side, derivative gains contributed EUR +10.0 million, highlighting the positive impact of the revised hedging strategy.
Other Products and Services
Sales revenue from other products and services nearly doubled year-on-year (+97%) to EUR 32 million, mainly due to the strong performance of frequency services. After the Baltic region desynchronized from the Russian grid, new frequency markets were established – bringing significant price volatility during the first months. Eesti Energia was well prepared, with both battery and generation assets in place, and consequently achieved strong profitability from mentioned area. Frequency services contributed EUR 27.0 million in revenue and EUR 31.3 million in EBITDA. Heat and gas revenues also grew modestly, while natural gas EBITDA declined by EUR 2.3 million. Overall, segment EBITDA rose by EUR 23 million.
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Looking ahead, we expect frequency services to normalize due to new market dynamics in Baltics’ frequency markets. While frequency services remain a promising and profitable business segment, forward-looking returns are likely to be less exceptional compared to Q2 2025.
Investments
Group capital expenditure amounted to EUR 120 million in Q2 2025, down 43% year-on-year. The largest share (EUR 51.3 million) was directed toward near-completion renewable energy projects-primarily the Kelme wind farm in Lithuania (EUR 35.3 million), expected to begin production in Q4 2025. Investments in the electricity distribution network increased by 7% to EUR 40.2 million, aimed at reducing the risk of outages and making the network more resilient to various weather conditions. Investments in the Enefit-280 shale oil plant totalled EUR 13.8 million as the project entered its final construction phase.
Financing and Liquidity
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As of 30 June 2025, Eesti Energia held EUR 619 million in liquid assets, with total available liquidity of EUR 1,019 million (including EUR 400 million in undrawn credit lines). Total debt stood at EUR 1,731 million, and net debt amounted to EUR 1,113 million, down EUR 271 million from a year earlier.
Key financing developments during the quarter included:
In April 2025, Eesti Energia acquired approximately 20% of publicly traded Enefit Green AS shares through a voluntary takeover bid, increasing its total ownership to 97.2%. A mandatory takeover will follow on 1 August 2025, after which Eesti Energia will hold 100% of Enefit Green AS shares. According to Nasdaq’s decision, the shares will be delisted on 4 August 2025EUR 100 million equity injection from the Government of Estonia in May 2025EUR 50 million senior unsecured bond issuance listed on Nasdaq Baltic in June 2025In July 2025, Fitch Ratings assigned Eesti Energia a first-time long-term issuer default rating of BBB- with a stable outlook Current credit ratings:
Fitch: BBB-, Outlook: StableMoody’s: Baa3, Outlook: NegativeS&P: BB+, Outlook: Negative
Outlook
Management expects full-year 2025 sales revenue and EBITDA to remain broadly in line with 2024, while capital expenditure is expected to decline. The Group’s strategic focus remains on finalising key projects-including new renewable energy parks and the Enefit-280-2 shale oil facility-as well as continued enhancements to the electricity distribution network.
Key financial information
Condensed Consolidated Interim Income Statement
2nd QuarterHalf yearin million EUR202520246m 20256m 2024Revenue387.8415.1917.9915.4Other operating income14.742.742.193.2Change in inventories of finished goods and work-in-progress (1.0)2.8(8.9)7.2Raw materials and consumables used (247.3)(210.6)(582.5)(530.4)Payroll expenses (51.1)(48.8)(99.9)(97.0)Depreciation, amortisation and impairment (41.3)(40.3)(81.8)(79.1)Other operating expenses (23.5)(47.7)(67.1)(107.6)OPERATING PROFIT 38.3113.2119.8201.7Financial income 2.11.55.33.0Financial expenses (17.1)(11.3)(29.8)(24.3)Net financial income (expense) (15.0)(9.8)(24.5)(21.3) Profit from associates under the equity method 4.61.26.53.0PROFIT BEFORE TAX 27.9104.6101.8183.4Corporate income tax expense 2.1(1.5)6.0(1.7)PROFIT FOR THE PERIOD 30.0103.1107.8181.7
Condensed Consolidated Interim Statement of Financial Position
in million EUR 30 June 202531 December 2024Non-current assets Property, plant and equipment 3,698.53,563.8Right-of-use assets 27.827.9Intangible assets 93.893.5Prepayments for non-current assets 60.461.1Deferred tax assets 5.74.2Derivative financial instruments 195.3213.3Investments in associates 79.374.9Other shares and holdings 0.20.3Non-current receivables 3.43.3Total non-current assets 4,164.44,042.3 Current assets Inventories 145.8172.0Greenhouse gas allowances and certificates of origin 76.074.5Trade and other receivables 206.6282.2Derivative financial instruments 48.590.0Cash and cash equivalents 618.5468.9Total current assets 1,095.41,087.6Total assets 5,259.85,129.9
in million EUR 30 June 202531 December 2024EQUITY Capital and reserves attributable to equity holder of the Parent Company Share capital 746.6746.6Unregistered share capital 100.0 Share premium 259.8259.8Statutory reserve capital 75.075.0Perpetual bond 414.2398.5Other reserves 119.1160.2Retained earnings 746.6565.5Total equity and reserves attributable to equity holder of the Parent Company 2,338.02,205.6Non-controlling interest 3.7177.8Total equity 2,341.72,383.4 LIABILITIES Non-current liabilities Borrowings 1,540.51,498.7Deferred tax liabilities 23.228.0Other payables 7.98.0Derivate financial instruments 9.54.4Contract liabilities and government grants 493.3467.9Provisions 39.939.0Total non-current liabilities 2,114.32,046.0Current liabilities Borrowings 210.7197.0Liquidity swap 112.379.8Trade and other payables 255.7267.5Derivative financial instruments 22.722.6Contract liabilities and government grants 3.12.0Provisions 199.3
