Today, on 29 April, the audited consolidated financial results of Latvenergo Group and Latvenergo AS for 2025 are published. The consolidated annual report of Latvenergo Group and the annual report of Latvenergo AS for 2025 include the sustainability report and Latvenergo AS Corporate Governance Report for 2025*.
The core development principle of Latvenergo Group in 2025 was the strategic growth and energy independence for the benefit of Latvia.
The year marked a historic turning point: almost half of the Group's electricity sold was traded outside Latvia. The number of Elektrum electricity customers in the Baltic states exceeded 914 thousand.
The most modern and efficient technologies have been used in building a portfolio of electricity generation capacity in the Baltic states with record-high investments of EUR 792 million (an increase of almost 50%), whereof EUR 548 million was allocated to renewable energy source (RES) projects - wind and solar parks.
The Group is both the largest electricity producer and the largest producer of green energy in the Baltic states. This leadership will be further supported by large-scale wind power and solar power plant projects and Aizpute Solar solar park.
Although global and regional developments have affected the Group's financial performance, it remains strong. The Group's revenue is 8% lower, amounting to EUR 1,566.1 million, while profit is 27% lower than in 2024, amounting to EUR 198.8 million. There are plans to pay at least EUR 141 million in dividends to the Latvian state for the welfare and benefit of the society.
The prolonged war in Ukraine and the military conflict in Iran at the beginning of 2026 demonstrate the importance of energy independence as one of the foundations of a free, secure and prosperous state. Latvenergo as a state-owned Latvian energy group intensively develops new generation capacity across all the Baltic states thus benefiting Latvian society both economically and in terms of security of energy supply. By strengthening its position in neighbouring markets, the Group significantly contribute to the Latvian economy, through the income generated there.
- Export
The year was marked by stronger export positions in the Baltic electricity market - almost half of the electricity sold at retail, or 2.7 TWh, was traded outside Latvia. The Group holds strong export positions in the strategically important household and small business segments, continuing to expand its customer portfolio. The number of Elektrum electricity retail customers in the Baltics exceeds 914 thousand. Outside Latvia, this amounts to 306 thousand, which is 8% more than in 2024. Meanwhile, the number of natural gas customers in the Baltics reaches 76 thousand. The total volume of electricity and natural gas sold at retail to Elektrum customers in the Baltics has increased by 4%. The volume of electricity sold at retail amounted to 6.1 TWh, and that of natural gas - 1.6 TWh.
- Investments
The volume of investment increased significantly (by 49%) rising to EUR 792.2 million, the highest level in the Group's history. Most of the investments was directed to the development and construction of RES projects as well as the modernisation and security of the electricity distribution network. During the reporting year, construction of two large-scale wind farms in the Baltics - Laflora Energy and Pienava Wind - was launched, Akmenes WPP was commissioned, the reconstruction of Ainaži WPP was completed, as well as the construction of Aizpute Solar was finished, eight solar parks was commissioned and two BESS projects were completed. At the end of 2025, the installation of the wind turbines at Telšiai WPP (124 MW) in Lithuania was completed, and all wind turbines have started generating electricity. The wind farm will be commissioned in the first half of 2026.
In 2026, the Group will continue to purposefully pursue this strategy which envisages a significant increase in renewable electricity generation capacity in the Baltics and the strengthening of energy independence. The total approved new RES portfolio reaches 1,144 MW.
- Generation
Latvenergo is the largest producer of electricity, including renewable energy, in Baltic states, generating 4.7 TWh of electricity with 3.1 TWh as renewable energy. Latvenergo Group generation facilities accounted for 24% of total generation in Baltic states. As in Europe, where solar and wind power plants stood out in electricity generation in 2025, electricity generated by Latvenergo Group solar and wind power plants is also increasing, reaching 209 GWh or five times more than in 2024. Electricity production at the Daugava hydropower plants decreased by 8% to 2,875 GWh due to lower inflow. Meanwhile, 1,587 GWh of electricity were generated at Latvenergo combined heat and power plants (CHPPs), 3% less than in 2024. The operation of Latvenergo AS CHPPs is adapted to electricity market conditions and heat demand.
- Sustainability
In line with the approved Sustainability Strategy, the Group has set clear targets and is systematically implementing initiatives across all three sustainability areas - environmental, social and governance. In 2025, for the first time, the Group's calculations of greenhouse gas emissions in 2024 were independently verified across all scopes, significantly strengthening data quality, reliability and conformity to the international reporting standards. The assessment of the Group's operations impact on ecosystems as well as the related risks and opportunities has resulted in a biodiversity conservation plan, setting out specific measures for the protection and sustainable management of biodiversity. At the same time, sustainability data management was further improved during the reporting year with the launch of the development of a unified sustainability data system across the Group. In order to independently assess the Group's sustainability performance and alignment with international best practice as well as to identify further opportunities for improvement, a corporate sustainability assessment was carried out by Standard & Poor's Global, awarding 54 points, thus placing Latvenergo AS among the top 30% of internationally highest-rated companies in the electric utilities sector.
Latvenergo AS in cooperation with the foundation "Iespejama misija" has implemented the fourth competition for the provision of equipment for physics classrooms in 28 Latvian general education institutions to enhance the learning process. The total funding for the project amounts to 360,000 EUR.
Latvenergo AS has provided significant support to Ukraine from the very first day of the war, specifically in the field of energy - both at the Group level and through employee donations. At the end of 2025, a convoy of 65 vehicles was sent to Ukraine, in addition to the 93 previously donated vehicles; 120 computer monitors, 20 tonnes of transformer oil for Ukrainian energy system and solar panels for schools in Chernihiv were delivered; employees donated funds for 1,952 portable batteries and 15 FPV drones, demonstrating sustained personal commitment to supporting Ukraine.
This is the second reporting year in which the sustainability report has been prepared under the Sustainability Information Disclosure Law, including the requirements of the Taxonomy Regulation (EU) 2020/852 and the Delegated Regulation on the European Sustainability Reporting Standards (EU) 2023/2772 (ESRS). The sustainability report includes comprehensive and in-depth information on the impact of the company's operations as well as the risks and opportunities related to the environment, social matters and governance. This strengthens transparency and improves the comparability of data between companies, while also supporting informed decision-making and promoting the transition to a sustainable economy.
- Financial results
The financial results of the Group were affected both by the decrease in the output of the Daugava HPPs and by trading conditions, as the retail price of electricity declined. The Group's revenue is 8% lower and amounts to 1,566.1 million euro, EBITDA is 25% lower than in 2024 and amounts to 440.1 million euro, while profit has decreased by 27% and amounts to 198.8 million euro. In accordance with the regulatory enactments, the expected dividend payment of the Group in 2026 for the reporting year 2025 is 141 million euro.
In 2025, Latvenergo AS and Latvian State Radio and Television Centre signed a memorandum of understanding with Telia Company AB, providing opportunity to consider the acquisition of the shares in its subsidiaries Tet SIA and Latvijas Mobilais telefons SIA. In January 2026, agreements were concluded with acquisition transaction consultants, and the consultants have commenced the evaluation of the transaction.
In October 2025, the international credit rating agency Moody's confirmed the credit rating of Latvenergo AS at Baa2 with a stable outlook, remaining unchanged since 2015. Also, at the end of 2025, Latvenergo AS carried out its first European Green Bond issue in the amount of 400 million euro under the Medium-term Eurobond Programme. Total investor demand before the final price exceeded the target amount by 5.5 times, thus reaching 2.2 billion euro.
*The Corporate Governance Report has been prepared under the Corporate Governance Code published in December 2025 by the Corporate Governance Advisory Council established by the Ministry of Justice.
LATVENERGO GROUP KEY PERFORMANCE INDICATORS
Operational figures
| 2025 | 2024 | ||
| Electricity customers | thsd. | 914 | 896 |
| Total electricity sales | GWh | 8,186 | 8,552 |
| Retail* | GWh | 6,053 | 6,140 |
| Wholesale** | GWh | 2,133 | 2,412 |
| Natural gas customers | thsd. | 76 | 65 |
| Total natural gas sales | GWh | 3,283 | 2,559 |
| Retail | GWh | 1,605 | 1,190 |
| Wholesale | GWh | 1,678 | 1,369 |
| Electricity generation | GWh | 4,696 | 4,842 |
| Thermal energy generation | GWh | 1,554 | 1,665 |
| Number of employees | 3,383 | 3,436 | |
| Moody's credit rating | Baa2 (stable) | Baa2 (stable) | |
* Including operating consumption
** Including sale of energy purchased within the mandatory procurement on the Nord Pool
Financial figures*
million EUR
| 2025 | 2024 | ||
| Revenue | 1,566.1 | 1,703.6 | |
| EBITDA | 440.1 | 588.4 | |
| Profit for the year | 198.8 | 273.7 | |
| Assets | 4,967.5 | 4,438.1 | |
| Equity | 3,031.5 | 3,006.9 | |
| Net debt | 1,152.7 | 656.9 | |
| Adjusted funds from operations (FFO) | 353.7 | 509.1 | |
| Capital expenditure | 792.1 | 530.2 |
* Information about the financial indicators and coefficients used by the Latvenergo Group is available in the Latvenergo Group's consolidated and Latvenergo AS Financial Statements for 2025 - see the section "Key Figures".
Financial ratios*
| 2025 | 2024 | ||
| Return on equity (ROE) | 6.6% | 9.2% | |
| Adjusted FFO / net debt | 39% | 87% | |
| Net debt / EBITDA | 2.1 | 1.0 | |
| EBITDA margin | 28% | 35% | |
| Return on assets (ROA) | 4.2% | 6.4% | |
| Net debt / equity | 38% | 22% |
* Information about the financial indicators and coefficients used by the Latvenergo Group is available in the Latvenergo Group's consolidated and Latvenergo AS Financial Statements for 2025 - see the section "Key Figures".
Consolidated Statement of Profit or Loss*
EUR'000
| 01/01-31/12/2025 | 01/01-31/12/2024 | |
| Revenue | 1,566,107 | 1,703,588 |
| Other income | 32,158 | 31,413 |
| Raw materials and consumables | (930,039) | (921,528) |
| Personnel expenses | (155,719) | (154,874) |
| Other operating expenses | (72,448) | (70,231) |
| EBITDA | 440,059 | 588,368 |
| Depreciation, amortisation and impairment of intangible assets, property, plant and equipment (PPE) and right-of-use assets | (183,249) | (250,812) |
| Operating profit | 256,810 | 337,556 |
| Finance income | 6,362 | 13,993 |
| Finance costs | (15,013) | (22,020) |
| Profit before tax | 248,159 | 329,529 |
| Income tax | (49,350) | (55,878) |
| Profit for the year | 198,809 | 273,651 |
| Profit attributable to: | ||
| - Equity holder of the Parent Company | 197,544 | 272,081 |
| - Non-controlling interests | 1,265 | 1,570 |
* The Latvenergo Consolidated Financial Statements for 2025 are prepared in accordance with the IFRS Accounting Standards as adopted by the European Union
Consolidated Statement of Financial Position*
EUR'000
| 31/12/2025 | 31/12/2024 | |||
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 124,816 | 105,566 | ||
| Property, plant, and equipment | 4,106,391 | 3,523,090 | ||
| Right-of-use assets | 44,104 | 31,910 | ||
| Investment property | 2,332 | 2,098 | ||
| Non-current financial investments | 40 | 82 | ||
| Non-current loans to related parties | - | 22,244 | ||
| Other non-current receivables | 1,855 | 540 | ||
| Deferred income tax assets | 2,037 | 1,857 | ||
| Derivative financial instruments | 1,688 | 2,124 | ||
| Total non-current assets | 4,283,263 | 3,689,511 | ||
| Current assets | ||||
| Inventories | 163,960 | 169,562 | ||
| Current intangible assets | 51,668 | 54,616 | ||
| Receivables from contracts with customers | 169,877 | 190,108 | ||
| Other current receivables | 14,358 | 32,928 | ||
| Deferred expenses | 3,169 | 3,196 | ||
| Prepayment for income tax | 1,736 | 491 | ||
| Derivative financial instruments | 11,818 | 1,298 | ||
| Other current financial investments | 149,915 | 209,842 | ||
| Cash and cash equivalents | 117,755 | 86,554 | ||
| Total current assets | 684,256 | 748,595 | ||
| TOTAL ASSETS | 4,967,519 | 4,438,106 | ||
| EQUITY AND LIABILITIES | ||||
| EQUITY | ||||
| Share capital | 1,076,324 | 790,368 | ||
| Reserves | 1,664,563 | 1,660,068 | ||
| Retained earnings | 283,826 | 549,328 | ||
| Equity attributable to equity holder of the Parent Company | 3,024,713 | 2,999,764 | ||
| Non-controlling interests | 6,814 | 7,162 | ||
| Total equity | 3,031,527 | 3,006,926 | ||
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Borrowings | 1,179,715 | 615,280 | ||
| Lease liabilities | 43,514 | 29,828 | ||
| Deferred income tax liabilities | 10,168 | 8,003 | ||
| Provisions | 20,595 | 17,113 | ||
| Deferred income from contracts with customers and advances received | 156,640 | 150,842 | ||
| Other deferred income | 123,085 | 112,408 | ||
| Other non-current liabilities | 2,790 | 21,592 | ||
| Total non-current liabilities | 1,536,507 | 955,066 | ||
| Current liabilities | ||||
| Borrowings | 90,727 | 128,125 | ||
| Lease liabilities | 2,944 | 2,723 | ||
| Trade and other payables | 171,650 | 210,487 | ||
| Deferred income from contracts with customers and advances received | 47,274 | 48,700 | ||
| Other deferred income | 27,142 | 25,104 | ||
| Provisions | 51,281 | 48,010 | ||
| Derivative financial instruments | 8,467 | 12,965 | ||
| Total current liabilities | 399,485 | 476,114 | ||
| Total liabilities | 1,935,992 | 1,431,180 | ||
| TOTAL EQUITY AND LIABILITIES | 4,967,519 | 4,438,106 |
* The Latvenergo Consolidated Financial Statements for 2025 are prepared in accordance with the IFRS Accounting Standards as adopted by the European Union
Additional information:
Janis Irbe
Group Treasurer
Phone: +371 29 453 897
E-mail: investor.relations@latvenergo.lv
www.latvenergo.lv
About Latvenergo
Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tikls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas, development of solar and wind parks in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas, development of solar and wind parks in Lithuania), Elektrum Next LT UAB (development of solar and wind parks in Lithuania), Elektrum Next SIA (development of solar and wind parks), Laflora Energy SIA (development of wind park), DSE Aizpute Solar SIA (development of solar park), Pienava wind SIA (development of wind park), Latvijas veja parki SIA (development of wind parks), Telšiu vejo parkas, UAB (development of wind park in Lithiania), Energijas publiskais tirgotajs AS (administration of mandatory electricity procurement process) and Liepajas energija SIA (generation and trade of thermal energy, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.
