Financial result

Fingrid’s consolidated financial statements have been drawn up in accordance with the International Financial Reporting Standards (IFRS). Unless otherwise indicated, the figures in parentheses refer to the same period of the previous year.

Fingrid’s consolidated financial statements have been drawn up in accordance with the same accounting principles as in 2017, taking into account the changes due to IFRS 9 and IFRS 15. 

The Group’s turnover was EUR 852.8 (672.0) million. Grid service income increased to EUR 423.2 (412.1) million, as a result of the growth in electricity consumption. Electricity consumption in Finland totalled 87.4 (85.5) terawatt hours during the year. The increase in imbalance power sales was partly the result of increased balance power prices and partly the result of the transfer of imbalance settlement to eSett Oy, following which the imbalance power sold to cross-border imbalance responsible parties is now reported as external turnover. Cross-border transmission income from the connection between Finland and Russia increased to EUR 35.5 (20.7) million, as a result of increased cross-border transmissions and the higher cross-border transmission tariff. The transmission tariff used in imports from Russia is based on the difference between Finland’s and north-western Russia’s area prices. Other operating income totalled EUR 10.8 (2.9) million. The increase in other operating income resulted from an EUR 8.0 million increase in the capital gains from the sale of fixed assets.

The Group’s total costs amounted to EUR 659.0 (499.0) million. Imbalance power costs grew from the previous year’s level, to EUR 320.0 (185.7) million, due to the increase in balance power prices and the above-mentioned transfer of imbalance settlement to eSett Oy. Loss power costs amounted to EUR 47.7 (47.5) million. The realised average price of loss power procurement was EUR 37.88 (37.62) per megawatt hour. The cost of reserves to safeguard the grid’s system security increased to EUR 56.7 (51.5) million due to an increase in the procurements for the frequency regulating reserve. Depreciation totalled EUR 99.7 (96.9) million. Grid maintenance costs decreased to EUR 21.2 (24.5) million due to access control system updates carried out in 2017. Personnel costs amounted to EUR 32.2 (29.4) million, and EUR 3.6 (2.6) million was used for R&D projects.

Turnover and other operating income, € million

[1] *eSett Oy is a company owned jointly by the Finnish, Swedish and Norwegian transmission system operators, responsible for imbalance settlement in Finland, Sweden and Norway. Imbalance settlement transferred to eSett Oy on 1 May 2017.

Turnover and other operating income, € million
  Jan-Dec/18 Jan-Dec/17 July-Dec/18 July-Dec/17
Grid service revenue 423.2 412.1 193.8 191.8
Sales of imbalance power 348.8 214.0 184.0 129.1
Cross-border transmission income 35.5 20.7 15.3 9.9
Peak load capacity income* 14.0 8.3 4.7 4.7
ITC income 13.1 8.6 7.8 4.8
Other turnover 18.2 8.2 10.4 5.6
Other operating income 10.8 2.9 10.4 5.6
Turnover and other income total 863.6 674.9 425.7 347.8
Costs, € million
  Jan-Dec/18 Jan-Dec/17 July-Dec/18 July-Dec/17
Purchase of imbalance power 320.0 185.7 170.6 116.1
Cost of loss energy 47.7 47.5 22.3 26.2
Depreciation 99.7 96.9 50.4 48.4
Cost of reserves 56.7 51.5 27.1 26.6
Personnel costs 32.2 29.4 15.6 14.7
Maintenance management costs 21.2 24.5 13.2 14.9
Cost of peak load capacity* 13.7 8.0 4.6 4.6
ITC charges 13.8 13.0 7.2 6.4
Other costs 54.0 42.6 30.9 21.2
Costs total 659.0 499.0 342.0 279.1
Operating profit excluding the change in the fair value of commodity derivatives 204.6 175.9 83.7 68.7
Operating profit of Group, IFRS 241.6 184.8 91.2 81.0
* Peak load capacity income and costs are related to the securing of sufficient electricity supply during peak consumption hours in compliance with the Finnish Peak Load Capacity Act.

The Group’s operating profit was EUR 241.6 (184.8) million. EUR 37.1 (8.9) of changes in the fair value of electricity derivatives and the currency derivatives related to capital expenditure and other operating expenses was recorded in operating profit. The Group’s profit before taxes was EUR 229.0 (163.7) million. The biggest differences from the previous year are explained by changes in the market value of derivatives (EUR +34.9 million), the increase in grid transmission income and in cross-border transmission income (EUR +25.9 million in total), and the growth in other operating income (EUR +7.9 million). Profit for the financial year was EUR 183.2 (130.8) million. The equity ratio was 36.6 (37.8) per cent at the end of the year.

The parent company’s turnover was EUR 844.6 (665.4) million, profit for the financial year EUR 194.6 (123.4) million and the distributable funds EUR 222.4 million.

By the company’s own calculations, the result according to the regulatory model that governs grid operations amounts to a surplus of around EUR 40 million for 2018.