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Financial results: Oulun Energia’s successful year 2021

24.03.2022 / Last updated 00:00

The company's financial performance was good—large investments proved their effectiveness

2021 was successful for Oulun Energia in many ways. The company's financial performance was good and there was positive operations development. The investments totaling about 250 million euros—the Laanila biopower plant and the waste sorting plant in Rusko—were in use during the whole year for the first time and functioned in an outstanding manner.

Chief Executive Officer Juha Juntunen of Oulun Energia commends the company for its success not only in optimizing its production but also in developing its circular economy business, among other things. The company is building a new foothold for its operations from circular economy.

"External circumstances were also favorable to us. The cold weather in the winter raised energy demand, and then, especially during the latter part of the year, the price of electricity rose to record highs," he states.

Net sales and profits improved

Oulun Energia's net sales rose to 230 million euros in 2021. Net profits amounted to 37.4 million euros. The corresponding figures for the previous year were 228.4 million and 16.8 million euros.

The key figures for the consecutive years are not comparable due to the corporate transactions made during 2021. Oulun Energia Urakointi Oy, previously part of the Oulun Energia Group, was sold to Destia Oy in March. Laanilan Voima Oy, meanwhile, ceased production at the end of the same month.

Juha Juntunen is particularly satisfied with Oulun Energia's financial performance when taking into account the write-downs taken.

"We continued to take write-downs and make provisions related to peat reserves for more than 5 million euros. In the last two years, these have totaled more than 20 million euros," he calculates.

Responsibility is at the core of Oulun Energia's operations. Last year, the company clarified its themes of corporate responsibility. Such were global environmental challenges, regional vitality, and caring for people.

Towards carbon neutrality

A key part of Oulun Energia's responsibility—and in part, an answer to the global environmental challenges—is to implement solutions that make its wholly and partially owned energy production carbon-neutral.

"Our goal is still to achieve this by 2035, but we are currently researching solutions to achieve carbon neutrality several years earlier," states Juntunen.

Oulun Energia has decided to give up the use of peat during 2024. The increase in the price of emissions allowances and the tax changes concerning peat have made the utilization of peat economically unprofitable as well.

However, Russia's attack on Ukraine may affect the timetable for giving up peat, as the war has raised concerns about security of fuel supply.

Even more renewables

The decentralization of the production structure and the increasing utilization of renewable energy sources also propel Oulun Energia towards carbon neutrality. Last year, the company decided, among other things, to acquire a 25% stake in Finland's largest wind farm, which is scheduled to be completed in Lestijärvi by the end of 2024.

The wind farm's annual electricity generation is about 1,300 gigawatt hours, Oulun Energia's portion of which accounts for a quarter, or about 320 gigawatt hours.

Oulun Energia launched a carbon-neutral district heating product in late winter last year. By choosing to use this, customers can personally take part in combating climate change. The company also made progress in utilizing surplus heat from trade and industry in the district heating network.

Additional Information

Oulun Energia
Juha Juntunen
Chief Executive Officer
+358 40 7225135