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.

In preparing these consolidated financial statements, the Group has followed the same standards as in 2016.

The Group’s turnover was EUR 672.0 (586.1) million. Grid service income increased to EUR 412.1 (382.4) million, as a result of the change in grid pricing enacted at the start of the year and due to the growth in electricity consumption. Electricity consumption in Finland totalled 85.5 (85.1) terawatt hours during the year. Fingrid transmitted 66.2 (68.5) terawatt hours of electricity in its grid, which represents 75.5 (77.3) per cent of all electricity transmitted in Finland. Imbalance power sales amounted to EUR 213.9 (153.9) million. The increase in imbalance power sales resulted from the transfer of imbalance settlement to eSett Oy* , following which the imbalance power sold to cross-border imbalance responsible parties is reported as external turnover. Cross-border transmission income from the connection between Finland and Russia decreased to EUR 20.7 (24.0) million, as a result of Russia’s lower realised 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. Fingrid’s congestion income from connections between Finland and Sweden decreased to EUR 25.5 (37.5) million, which has been used for the Hirvisuo-Pyhänselkä grid investment. Other operating income totalled EUR 2.9 (12.7) million. The decline in other operating income resulted from the EUR 6.3 million in congestion income recognised in 2016 in compliance with the regulation concerning the costs from maintaining cross-border capacity and countertrade, and from a decline of EUR 3.5 million in capital gains on fixed assets.

The Group’s total costs amounted to EUR 499.0 (442.2) million. Imbalance power costs grew from the previous year’s level, to EUR 186.0 (121.7) million due to the above-mentioned transfer of imbalance settlement to eSett Oy. Loss power costs amounted to EUR 47.5 (57.6) million. The declining loss power costs have been affected by the lower price of loss power procurement and the lower volume of loss power. The realised average price of loss power procurement was EUR 37.62 (43.87) per megawatt hour. The costs of reserves to safeguard the grid’s system security amounted to EUR 51.5 (50.5) million. Depreciation totalled EUR 96.9 (99.2) million. Grid maintenance costs amounted to EUR 24.5 (24.1) million and personnel costs to EUR 29.4 (28.6) 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.

Turnover and other operating income, € million
  Jan-Dec/17 Jan-Dec/16 July-Dec/17 July-Dec/16
Grid service revenue 412.1 382.4 191.8 184.4
Sales of imbalance power 213.9 153.9 128.9 79.3
Cross-border transmission income 20.7 24.0 9.9 13.3
Peak load capacity income* 8.3 7.0 4.7 3.5
ITC income 8.6 13.2 4.8 5.3
Other turnover 8.4 5.6 5.8 3.0
Other operating income 2.9 12.7 1.9 4.4
Turnover and other income total 674.9 598.8 347.8 293.2
Costs, € million
  Jan-Dec/17 Jan-Dec/16 July-Dec/17 July-Dec/16
Purchase of imbalance power 186.0 121.7 116.3 63.6
Cost of loss energy 47.5 57.6 26.2 26.9
Depreciation 96.9 99.2 48.4 51.0
Cost of reserves 51.5 50.5 26.6 26.4
Personnel costs 29.4 28.6 14.7 14.3
Maintenance management costs 24.5 24.1 14.9 14.7
Cost of peak load capacity* 8.0 6.6 4.6 3.3
ITC charges 13.0 12.6 6.4 6.9
Other costs 42.4 41.1 21.0 19.6
Costs total 499.0 442.2 279.1 226.7
Operating profit excluding the change in the fair value of commodity derivatives 175.9 156.6 68.7 66.5
Operating profit of Group, IFRS 184.8 192.0 81.0 91.6
* 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 184.8 (192.0) million. To recognise changes in the fair value of electricity derivatives and the currency derivatives related to capital expenditure and other operating expenses, EUR 8.9 (35.4) million was recorded in operating profit. The Group’s profit before taxes was EUR 163.7 (173.9) million. The biggest differences from the previous year are explained by changes in the market value of derivatives (EUR -33.1 million), the decline in other operating income (EUR -9.8 million), and the growth in grid service income (EUR +29.7 million). Profit for the financial year was EUR 130.8 (138.7) million. The equity ratio was 37.8 (36.4) per cent at the end of the year.

The parent company’s turnover was EUR 665.4 (581.4) million, profit for the financial year EUR 123.4 (103.9) million and the distributable funds EUR 201.3 million.

By the company’s own calculations, the result according to the regulatory model that governs grid operations amounts to a deficit of around EUR 5 million for 2017. Towards the end of 2017, the company decided to maintain the grid service fees unchanged in 2018.