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08.03 2018

Enefit increasing market share and achieved revenue growth in 2017

Enefit, an independent energy supplier, has achieved a turnover of EUR 24.3 million for the year 2017, which was an increase of 5.3% compared to the previous year. The number of company’s customers has increased by 25% during the same period. Currently, Enefit supplies electricity to more than 1,100 clients, and gas – to around 70 clients. Enefit predicts that after a significant jump of electricity and gas prices at the end of winter, the market will normalize in the coming few weeks, however, higher volatility of electricity prices could be expected during upcoming NordBalt repairs at the end of summer.

‘Last year we had successfully increased our customer base as well as market share. Due to favorable conditions in the gas market, we started selling gas, thus becoming an energy supplier with a comprehensive portfolio of energy products. We expect a stable further growth in the market for the coming year, observing growing interest of our customers in effective energy usage and the needs for corresponding solutions. Therefore, we plan to engage in more active consultations for our clients on energy efficiency topics and to introduce new related products’, Edita Semėnienė, Board Member of Enefit, says.

Enefit supplied a total of 761 GWh electricity during the last year. The B2B market share increased from 8 % to 12 %. Furthermore, 44 % of the electricity sold was produced from renewable sources. Taking into account favorable conditions in the gas market, Enefit started to sell gas at the end of 2017 and during the last few months acquired about 70 clients, buying gas products from the company.

2017 m. pabaigoje, rinkoje susiklosčius atitinkamoms sąlygoms, „Enefit“ pasiūlė įmonėms įsigyti dujų. Per pastaruosius kelis mėnesius dujas iš bendrovės įsigyjančių klientų skaičius išaugo iki maždaug septyniasdešimties.

Due to the impact of financial derivatives to financial result, the company recorded a loss of EUR 1.36 million for 2017. A year before Enefit achieved a profit of EUR 2.2 million.

Price volatility factors – cold weather and NordBalt repairs

Unusually cold weather in Europe at the beginning of 2018 was the main factor behind the recent jump of energy prices. The consumption of gas had increased sharply in most European countries and stored gas reserves were used to meet the demand. That caused high gas prices in the market, but it was a short-lived occurrence – with the increase of temperatures the demand for gas has plunged, and the prices should reach their average levels soon, Enefit forecasts.

The leap of the gas prices was followed by increased electricity prices. It was a consequence of two factors – the rise of costs in gas power plants and the rise of electricity consumption in Scandinavian countries, where electricity is used for heating purposes. The electricity prices have normalized since, but are slightly above their average level. Further electricity price fluctuations will depend on spring weather and the levels of precipitation in Scandinavia, which will directly affect the hydro reserves and the amount of electricity produced by hydropower plants.

Another important factor for the price of electricity is the forthcoming repair of NordBalt power cable. The cable will not be functioning from the end of July to early October and cheaper electricity from Scandinavia region will not be available in Lithuanian market. As a result, noticeably higher electricity prices in Lithuanian and Latvian markets are expected during the NordBalt repair period.

Eesti Energia has reached the record level in energy production

Eesti Energia, the parent company of Enefit, has recorded a turnover of EUR 754 million – a 2% increase compared to the previous year. The net-income of the company before tax, interest and amortization (EBITDA) was EUR 264 million.

Eesti Energia maintained the position as the leader of energy production in the Baltic states by producing a total of 9.7 TWh of electricity. The amount of electricity produced grew by 7% and reached the highest point during the last 4 years. The company produced 395 thousand tons of shale oil and extracted an over 16 million tons of shale in total.

In 2017, investments of Eesti Energia totaled to EUR 144 million, the subsidiary companies of Eesti Energia started their operations in Poland, Sweden and Finland markets.

Daugiau informacijos:
Andrius Matuliauskas
„Integrity PR“ projektų redaktorius
Mob. tel 861619614
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