Latvenergo AS Group has announced a decrease in turnover and profit for the first half of 2025. According to “Nasdaq Riga”, the group’s turnover was EUR 847.068 million, an 11.3% decrease compared to the same period last year. The Group’s profit experienced a more important drop, falling by 46.4% to EUR 135.267 million.

The parent company also saw a decline, with turnover decreasing by 15.9% to EUR 521.104 million and profit falling by 41.9% to EUR 147.409 million.

The EBITDA for the Group in the first half of 2025 was EUR 271.7 million, a 31% decrease compared to the first half of 2024.

According to the financial statement, the decline in performance was primarily due to reduced water levels in the Daugava River, leading to lower electricity production at the Daugava hydropower plants (HPPs). Additionally, milder weather conditions contributed to a decrease in electricity and natural gas consumption across the Baltics, resulting in lower energy sales.

Latvenergo Group’s electricity production in the first half of 2025 totaled 2603 gigawatt-hours (gwh), a 26.3% decrease compared to the same period last year. this decline was attributed to reduced output from both the Daugava HPP and thermal power plants (TEC).

The Daugava HPP generated 1647 GWh in the first half of 2025,a 36% decrease compared to the first half of 2024.This reduction is attributed to the comparatively high water levels in the daugava during the first half of 2024,which facilitated the third-highest electricity production from the Daugava HPP in history. The lower water levels in the Daugava this year resulted in decreased electricity generation.

Latvenergo’s thermal power plants produced 887 gwh of electricity in the first six months of 2025, a 7% decrease compared to the same period last year.

The Group accounted for 24% of the total electricity generated in the Baltic States during the first half of the year, with 66% of its production coming from renewable energy resources (RES).

The financial statement highlights the growing contribution of new solar power plants (SES) and wind power plants (VES) to the RES portfolio. These plants generated 57 GWh of electricity in the first half of the year,nearly five times more than the previous year.

Warmer weather conditions led to a 12% decrease in heat production, totaling 916 GWh.

Latvenergo’s electricity sales to customers in the Baltics increased by 3% to 4071 GWh in the first six months of 2025. Natural gas sales saw a more significant increase of 44%, reaching 889 GWh. Overall electricity consumption in the Baltic States decreased by 2%, and natural gas consumption decreased by 7%. Elektrum,however,increased its number of electricity customers by 3% and natural gas customers by 20%.

Investments in the first half of 2025 totaled EUR 392 million, 2.2 times more than in the same period last year.

As of the end of June 2025, the Group’s newly built RES capacity in the Baltics was 179 megawatts (MW).Solar and wind parks with a total capacity of 965 MW are in the design or construction phase, bringing the total approved new RES project portfolio to 1144 MW.

Construction of the Laflor Energy wind park commenced in May 2025, with electricity generation expected to begin in the summer of 2026.In June, a foundation stone was laid in Lithuania for a project with a total capacity of 19.6 MW. Three-quarters of the total investment, or EUR 291 million, where invested in the first six months of this year.Major projects include the construction of Aizpute SES in Latvia (265 MW), “Milk Wind” in Ves in Latvia (147 MW), “Telšiai” in Lithuania (124 MW) and “Laflora Energy” in Latvia (109 MW). Latvenergo acquired the Milk Wind project, with a planned capacity of 147 MW, in June, with an estimated construction investment of approximately EUR 215 million and is expected to start generating electricity in 2027.

In July 2025, Latvenergo and SJSC “Latvian State Radio and Television Center” signed a Memorandum of Understanding with Telia Company to explore potential collaborations involving parts of SIA “TET” and SIA “Latvijas mobilais Telefons”.

Factors Affecting Latvenergo’s Performance

Several factors contributed to Latvenergo’s financial results in the first half of 2025. These include hydrological conditions impacting hydropower generation, broader economic trends affecting energy consumption, and strategic investments in renewable energy infrastructure.