Eesti Energia Group Unaudited Results for Q1 2026
Sales Revenues and Profitability
In Q1 2026, the Baltic electricity market prices notably increased from the low-price environment over Q2-Q4 2025. Cold weather across the Nordics and Baltics in January and February drove higher electricity consumption, which in combination with modest wind conditions, lifted regional spot prices materially year-on-year. Furthermore, the introduction of the strategic reserve capacity fee mechanism on 1 January 2026 provided an additional source of revenue for Eesti Energia 's oil shale-based reserve power fleet. The shale oil segment experienced a mixed pricing environment during the quarter, as average fuel oil prices declined year-on-year. Prices were weighed down by weak global liquid fuel market conditions in January-February, partially offset by a sharp rally in March driven by the Strait of Hormuz crisis.
Eesti Energia Group 's sales revenue in Q1 2026 totalled EUR 566 million, an 8% increase year-on-year. Group EBITDA rose by 5% to EUR 119 million. Net profit for the period amounted to EUR 49 million, a decrease of 30% year-on-year, primarily reflecting one-off higher net financial expenses.
The non-renewable electricity segment and the distribution segment were the primary drivers of EBITDA growth, underpinned by higher electricity prices, consumption and the new reserve capacity fee. These gains were partly offset by lower profitability in renewable energy and shale oil, the latter reflecting planned maintenance and weaker fuel oil market prices during the quarter.
CFO Marlen Tamm commentary:
“The dynamics of energy markets have become significantly more complex — price levels are simultaneously shaped by weather conditions, geopolitical risks, and a volatile CO₂ price. This market environment makes investment decision-making very challenging.
Within Eesti Energia Group 's integrated portfolio, the combination of different generation methods helped balance risks and stabilise performance. Cold weather in January and February, and the resulting high electricity demand, kept prices elevated. Conversely, in March, demand fell and renewable electricity generation increased, causing market prices to drop. The lower price level also reduced the competitiveness of dispatchable generation. Such price dynamics are not an exception, they are the new normal. The growing share of renewables makes portfolio management through storage increasingly important.”
Renewable Energy and Electricity Sales Segment
Sales revenue from the renewable energy and electricity sales segment amounted to EUR 243 million in Q1 2026, a 12% increase year-on-year. The revenue growth was driven by higher electricity prices across all Baltic markets despite a slight decline in renewable generation volumes. Retail electricity sales volume was 2.7 TWh, broadly stable year-on-year. Total renewable electricity generation amounted to 0.7 TWh, down 4% year-on-year, primarily due to the divestment of the Tolpanvaara wind farm in Finland at the end of 2025 and lower than anticipated output at the Sopi–Tootsi wind farm. Offsetting these headwinds, Kelmė I was already operating at full capacity and Kelmė II reached full operational capacity during the quarter, marking a significant milestone in the Group 's wind farm portfolio.
Segment EBITDA decreased by 23% to EUR 16 million. The total margin impact was negative EUR 17 million, as higher sales prices and renewable subsidies were more than offset by significantly higher electricity purchasing costs, primarily reflecting the Group 's retail portfolio consumption exceeding its own renewable generation. However, the negative margin impact in this segment and this quarter is partly offset by the positive non-renewable electricity margin impact, since fossil-based assets were the main market makers due to cold and modest wind conditions.
Non-Renewable Electricity Production Segment
Sales revenue from non-renewable electricity production increased by 32% to EUR 121 million in Q1 2026. The principal drivers were higher realised electricity prices and the introduction of the strategic reserve capacity fee mechanism, which generated approximately EUR 14.2 million in the quarter and is expected to contribute approximately EUR 60 million on an annualised basis. Electricity generation from non-renewable sources amounted to 0.6 TWh, down 6%, primarily due to year-over-year lower average electricity prices in March.
Segment EBITDA increased by 72% to EUR 39 million. The margin impact contributed a positive EUR 13 million, reflecting higher electricity prices, especially during January-February, and above-mentioned favourable interaction between the non-renewable fleet 's dispatch and the Group 's retail client portfolio hedging strategy. Lower generation volumes, higher fixed costs, and the absence of derivative gains were partial offsets.
Estonia 's energy supply security continues to depend on oil shale power plants as dispatchable backup capacity. The reserve capacity mechanism provides appropriate compensation for the cost of maintaining this national energy security role.
Distribution Segment
Distribution sales revenue grew 12% to EUR 99 million in Q1 2026, driven by higher electricity distribution volumes. Distribution volume increased to 2.1 TWh (+12% year-on-year), reflecting elevated electricity consumption in the Estonian market during the cold months of January and February. The average distribution sales price was broadly stable year-on-year.
Segment EBITDA increased by 20% to EUR 44 million, largely driven by cold weather in January-February, and therefore increased electricity consumption. Importantly, the distribution segment continues to be the most resilient and predictable contributor to Group earnings, and stable profitability trends are expected to continue.
Shale Oil Segment
Shale oil sales revenue decreased by 27% to EUR 40 million in Q1 2026. The average shale oil sales price, including hedge settlements, fell to EUR 352 per tonne (Q1 2025: EUR 425 per tonne), a 17% decline year-on-year, reflecting the lower fuel oil market environment that prevailed in the quarter prior to the escalation of geopolitical tensions in the Middle East. Shale oil sales volumes declined by 12% year-on-year, and production amounted to 118 thousand tonnes, down 3%, primarily due to maintenance of the Enefit 280-1 oil plant.
Segment EBITDA decreased by 44% to EUR 11 million. The margin impact was broadly flat. The 12% fall in sales volumes reduced EBITDA by EUR -4 million. Gain on derivatives declined by EUR 2 million year-on-year, and other movements, primarily the revaluation of unrealised derivative instruments, contributed a negative EUR 3 million.
The Q1 2026 results do not fully reflect the benefit of the heightened fuel oil price environment that emerged from geopolitical tensions in the Middle East. We expect the impact of current elevated fuel prices to flow through to Profit & Loss over the next two to seven quarters. Additionally, the newly constructed Enefit 280-2 oil facility commenced its first production output in April 2026 and is expected to reach full production capacity by Q3 2026. Combined, these factors are expected to support improved shale oil segment performance in the periods ahead.
Other Products and Services Segment
Sales revenue from other products and services decreased by EUR -7 million to EUR 64 million in Q1 2026. The segment includes gas, heat, frequency services, and other items.
Segment EBITDA decreased by EUR -5.5 million to EUR 10 million. Natural gas and heat combined improved by EUR +5 million in EBITDA, while frequency services which is essential for maintaining 50-hertz grid stability, declined by EUR -5.5 million in EBITDA year-on-year. The decline in frequency services revenue reflects the normalisation of ancillary service prices following an exceptional base period last year. Frequency markets in Estonia had opened in early 2025, driving unusually high and volatile prices in the first half of that year. As the market has since stabilised, frequency services now generate reliable, recurring additional income from the Group 's existing asset base. This is a sustainable contribution, albeit at more moderate levels than the exceptional returns recorded in Q1 2025.
Investments
Group capital expenditure in Q1 2026 totalled EUR 51 million, a 47% decrease year-on-year, reflecting the Group 's deliberate transition past the peak of its heavy investment cycle. The heavy CAPEX cycle of recent years is now over, and the Group 's strategic focus has shifted to unlocking greater returns from the existing asset base.
Investments in the renewable energy and electricity sales segment amounted to EUR 13 million (Q1 2025: EUR 39 million, -67%), primarily comprising final additions to the Kelmė wind farm and the Strzałkowo solar farm. Distribution network investments were EUR 27 million (Q1 2025: EUR 29 million, -6%), focused on network maintenance and grid connections. Shale oil investments amounted to EUR 7 million (Q1 2025: EUR 18 million, -61%), principally reflecting the final construction costs for the Enefit 280-2 oil facility, which is now commissioned.
Financing and Liquidity
As of 31 March 2026, Eesti Energia had EUR 170 million in liquid assets and EUR 520 million in total available liquidity, including EUR 350 million in undrawn credit facilities. Net debt stood at EUR 1,283 million.
Key financing events during Q1 2026 included the full repayment of the syndicate loan on 16 February 2026. The Group 's Hybrid Bond of EUR 400 million, issued in 2024, remains outstanding with a first call date in 2029.
The Group 's net debt-to-EBITDA ratio stood at 3.98x at the end of Q1 2026. Eesti Energia is fully committed to reducing this ratio towards 3.5x through strict capital discipline, including the reduction of capital expenditure, alongside a continued focus on internal efficiencies and cost reduction. The Group 's financing policy remains focused on maintaining investment-grade credit ratings.
Current credit ratings (as of 30 April 2026):
Fitch: BBB–, Outlook: Stable
Moody 's: Baa3, Outlook: Stable (affirmed 8 April 2026)
Outlook
Eesti Energia reaffirms its full-year 2026 guidance. Sales revenue and EBITDA are expected to increase compared to 2025 levels. Capital expenditure is planned to decrease by approximately 50% compared with 2025.
The primary drivers of the expected improvement are: a) the full operational contribution of the new Lithuanian wind assets throughout 2026; b) the strategic reserve power capacity subsidy of approximately EUR 60 million per annum; c) somewhat higher fuel prices driven by developments in the Middle East; d) the ramp-up of the new Enefit 280-2 shale oil facility towards full production capacity by Q3 2026; and e) additional efficiencies from integrating the retail client portfolio, renewable electricity assets, and energy trading into one unit.
On the investment side, the Group will continue to focus on completing major ongoing projects and making essential network upgrades, rather than initiating new discretionary investments. The Group 's strategic emphasis is firmly on maximising returns from the already existing asset base.
Key Financial Information
Condensed Consolidated Interim Income Statement
| EUR million | Q1 2026 | Q1 2025 |
| Sales revenues | 566.3 | 522.0 |
| Other revenues | 62.0 | 27.3 |
| Expenses (excl. depreciation) | (509.3) | (435.5) |
| – Electricity purchasing costs | (226.6) | (185.3) |
| – Environmental fees | (8.7) | (10.6) |
| – CO₂ emission costs | (36.9) | (41.6) |
| – Change in inventories | (4.4) | (8.0) |
| – Other | (232.7) | (190.0) |
| EBITDA | 119.0 | 113.8 |
| Depreciation | (45.7) | (40.4) |
| EBIT | 73.2 | 73.4 |
| Net financial income / (expenses) | (25.2) | (9.5) |
| Net profit from associates (equity method) | 1.9 | 2.0 |
| Earnings before tax | 49.9 | 65.9 |
| Income tax expense | (0.8) | 3.9 |
| Net profit | 49.1 | 69.8 |
Condensed Consolidated Interim Statement of Financial Position
| EUR million | 31 March 2026 | 31 March 2025 |
| Assets | 4,665.9 | 5,164.4 |
| Current assets | 717.0 | 1,072.4 |
| – Cash and cash equivalents | 169.6 | 477.0 |
| – Trade receivables | 227.6 | 246.0 |
| – Inventories and prepaid expenses | 192.8 | 178.3 |
| – Other current assets | 127.0 | 171.0 |
| Non-current assets | 3,949.0 | 4,092.0 |
| Liabilities and equity | 4,665.9 | 5,164.4 |
| Liabilities | 2,598.3 | 2,741.4 |
| – Trade payables | 126.4 | 146.6 |
| – Borrowings | 1,460.5 | 1,641.8 |
| – Provisions | 189.5 | 213.1 |
| – Deferred income | 544.5 | 484.1 |
| – Other liabilities | 277.5 | 255.8 |
| Equity | 2,067.6 | 2,423.0 |
Eesti Energia published its unaudited Q1 2026 results on 30 April 2026. The Q1 2026 interim report and investor presentation are available on Eesti Energia 's website. An investor call discussing the Q1 2026 financial results is scheduled for 30 April 2026 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@enefit.com
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