January-April 2025

• Group Revenue: The total revenue of the group was €116.3 million (€130,1).
• Group Operating Profit: The total operating profit of the group was €31,4 million (€39,0).
• Weather Conditions and Electricity Markets: The mild and windy weather at the beginning of 2025 reduced the need for heating and kept electricity prices low, decreasing the group revenue. The price differences between windy and calm periods remained high.
• Electricity Transmission: Despite a milder winter than last year, the amount of electricity transmitted remained at the previous year's level in the first quarter, totalling 505 gigawatt hours (510).
• Electricity Production: Electricity production from own power plants and shares was 385 gigawatt hours (422) in the early part of the year, which was 13 percent lower than the previous year.
• Strategy Implementation: The strategy approved in autumn 2024 progressed decisively. New services and investments, such as the multi-energy optimisation service, a 20-megawatt battery storage, the construction of Finland's largest plastic recycling plant, and the Laanila hydrogen project, were advanced. The 60 percent share purchase of Kemin Energia ja Vesi Oy progressed with the approval of the Competition and Consumer Authority.
• Year and Sustainability 2024: The Year and Sustainability Report 2024 was published in April.

The weather in Oulu at the beginning of 2025 was milder than average and relatively windy. This reduced the need for heating and calmed fluctuations in the electricity market. The price differences between windy and calm periods remained high.

"The warmer weather at the beginning of the year directly resulted in reduced fuel costs and savings in other raw materials. On the other hand, the decline in revenue was influenced by reduced electricity sales. Overall, however, it was a successful start to the year," says Arto Sutinen, CEO of Oulun Energia Group.

"What makes the beginning of the year particularly successful are the well-progressed strategic projects. The Laanila hydrogen project has advanced to the environmental impact assessment (EIA), the Hyvinkää plastic recycling plant is already at the topping-out stage, and the share purchase of Kemin Energia ja Vesi Oy received approval from the Competition and Consumer Authority," Sutinen continues.

Strategy Implementation  

The strategy approved in autumn 2024 was advanced decisively and successfully. We launched a new multi-energy optimisation service for business operators, which provides the opportunity to efficiently utilise energy resources and gain new types of returns in the energy market. We joined the solar power company Suomen Aurinkovoima Oy. The investment in the Syklo’s plastic recycling plant is progressing as planned in Hyvinkää, and we made an investment decision to build a 20-megawatt electricity battery storage at the Toppila power plant area in Oulu. The 60 percent share purchase of Kemin Energia ja Vesi Oy progressed with the approval of the Competition and Consumer Authority. The preliminary design and environmental impact assessment (EIA) of the Laanila hydrogen project are underway.

Changes in Operating Environment

The market price of electricity in Finland was 27 percent lower in January-April than last year, at €48.85 per megawatt hour (€66.53). Finland's total electricity consumption was at last year's level. Electricity production from our own power plants and shares was 385 gigawatt hours (422) in the early part of the year, which was 13 percent lower than the previous year. Hydropower production was 133 gigawatt hours (158), which was 16 percent lower compared to last year. Combined heat and power (CHP) production volumes also decreased by 13 percent compared to the previous year, totalling 199 gigawatt hours (228). Similarly, wind power production decreased by 7 percent compared to the previous year.
In the circular economy business environment, the low amount of construction and demolition waste caused by the weak construction cycle was visible. Additionally, there was national discussion about the increase in imported waste due to the reduction of mixed waste. In our operations, imported waste has a small share, only 3 percent (5). According to our goals, we will invest in new recycling plants, which will provide recycling routes for fractions such as mixed plastics, for which it has previously been challenging to find profitable recycling destinations. 

Business Events

The sales of the multi-energy optimisation service started in January, and the first customer resources were offered to the reserve market in March. The resources of the Linnanmaa energy center, which started commercial use in April, were also connected to the service. EPV Heinineva solar power plant received temporary operating rights and is expected to be fully operational by the end of 2025. SolarPower Paarmala solar power plant will be connected to the grid in May-June 2025. The construction of the district heating network was at last year's level at the beginning of the year. Construction of district heating was quiet during the winter months, but building work will begin in May. At the beginning of the year, 21 new customers were connected to the district heating network, and mass replacement of meters is underway.

The year started with challenges in production. The disturbance at the Toppila power plant on Epiphany and in February tested the organisation's ability to cope with challenges. The operating environment of electricity production was characterised by strong fluctuations in electricity prices, which led to the use of the electric boiler more than anticipated. Due to the mild winter, there was less heat production, totaling 988.8 gigawatt hours. Electricity production was 385 gigawatt hours, of which 73.1 gigawatt hours were produced at Merikoski and 135.2 gigawatt hours at Toppila.

Syklo's early year went according to plan. Among other things, the investment in the electric wood crushing line and the advancement of the plastics recovery project were highlights of the early year. The waste reception amount at the Oulu sorting plant and Hyvinkää circular economy hub was a total of 20,103 tons. The reception amount of combustible waste at the eco-power plant was 48,908 tons. End products delivered totalled 37,187 tons, of which 29,990 tons went to energy recovery.

Oulun Energia Sähköverkko Oy investment program started as planned in the spring. In the first quarter, we invested €1.9 million in the network. The amount of electricity transmitted remained at the previous year's level at 505 gigawatt hours. The average interruption time caused by fault interruptions was 7.8 minutes. The number of electricity network customers grew moderately, totalling 120,084 connection points at the end of April.

Future Outlook

In the short term, the operating environment is affected by strong geopolitical tensions, such as US trade policy, which cause uncertainty and instability in general economic outlooks and may affect international production chains and commodity markets, despite the protection of electricity prices. Despite the decline in interest rates, geopolitical risks, increased uncertainty, and reduced visibility may pose challenges to new industrial investments using clean electricity.

Oulun Energia’s wholesale electricity production and share results are exposed to fluctuations in electricity prices. Economic downturn, commodity price declines, and weather or water conditions can lead to significant drops in electricity prices, negatively impacting Oulun Energia’s revenue and operating profit for 2025. We expect the revenue and operating profit for 2025 to be lower than in 2024.

Oulun Energia Group Interim Report 2/2025 will be published in September 2025.