Energy, Estonia, Financial Services

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 13:15

Estonian FinMin: market situation is still complicated for Eesti Energia

BC, Tallinn, 17.02.2016.Print version
While in 2015 Estonia decided to take out less dividends from the state-owned energy group Eesti Energia due to a bad market situation, the complicated market situation will continue also at the beginning of this year, Finance Minister Sven Sester said, cites LETA/BNS.

"The state takes into account the situation of every company in its dividend policy, including business prospects, the need for investments and capital structure," Sester told BNS. He added that as a result of the low prices of shale oil and electricity the state reduced Eesti Energia's dividend payment in 2015, taking out 61.9 million euros compared to 95 million euros.

 

"The start of the year shows that a complicated market situation will continue and for companies in the energy sector it means adjusting decisions, including for Eesti Energia," Sester said.

 

He stressed that the oil shale sector is important for Estonia and the state cannot be a bystander. "In the near future I will submit proposals to the Cabinet on how to take into account the worsened market situation when considering the fees connected to the extraction and processing of oil shale," he added.

 

When speaking about the possible lowering of Eesti Energia's credit rating by Moody's, Sester said that such decisions are made by rating agencies. "There depend on the change in the market situation and regulations as well as the future of the company," the minister said.

 

The international rating agency Moody's might lower in the next six months the credit rating of Estonia 's state-owned energy group Eesti Energia from the current Baa2, the agency said.






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