Enefit’s turnover and losses doubled last year :: Dienas Bizness

The turnover of energy company SIA “Enefit” last year was 114.882 million euros, which is almost twice as much as the year before, while the company’s losses increased 2.2 times – to 2.54 million euros, according to “Firmas.lv” information.

The management report of the company’s annual report explains that the company continued its successful operation last year thanks to the chosen business strategy and the development of new products. Also, the rapid increase in the market price of electricity is mentioned as the reason for the increase in turnover.

The management of “Enefit” states that last year the company achieved significant growth in the private market, currently providing electricity supply to more than 50,000 households in Latvia.

The management report explains that losses amounting to EUR 2.54 million were mainly due to the rapid increase in the price of the electricity market and because “Enefit” decided not to revise them for existing customers who had concluded fixed price contracts.

Also, the management report notes that last year the company started offering electric car charging solutions to individuals and companies on the Latvian market.

The management report states that the geopolitical crisis caused by Russia’s invasion of Ukraine contributes to significant fluctuations in electricity prices. These conditions, together with the sanctions introduced against Russia and Belarus, create a risk that some of the companies operating in Latvia will have to reduce their activity or even stop it. This, in turn, poses a risk to the operation of “Enefit”, as the amount of electricity sold may decrease.

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Also, the introduction of new sanctions creates a risk for “Enefit” not to receive the necessary raw materials and components for the implementation of energy projects in a timely manner, which may adversely affect the company’s financial results if the company is unable to meet the contractual obligations in a timely and sufficient manner. However, as indicated in the management report, the mentioned factors can also have a positive impact on the new business directions – to promote the number of sold and implemented new electricity generating capacity and projects promoting energy efficiency.

The turnover of “Enefit” in 2020 was 57.664 million euros, which is 0.7% less than the year before, but the company’s losses decreased 2.6 times – to 1.177 million euros.

The company was registered in 2006, and its share capital is 7.485 million euros. “Enefit” belongs to “Eesti Energia”, a company registered in Estonia.

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