Caruna Group 1 January – 30 June 2023: Caruna continued to invest in Finnish energy transition despite inflation and increasing costs in operating environment

Caruna is committed to investing and developing its electricity network to improve security of supply and enhance Finnish energy transition. However, due to cost increase in network construction and interest rates, Caruna had to monitor its investments more closely, which resulted in postponing some unprofitable investment projects.

Caruna Group's investments in January–June totalled EUR 63.5 (58.5) million, of which investments in the high-voltage distribution network accounted for 15 per cent. 

The energy transition drives the increase in electricity consumption in Finland, which is assumed to increase by over 50 per cent by 2040. The distribution networks create a crucial platform in enabling this. Smart electricity networks and optimising customers' energy consumption will help balance electricity supply and demand, thus contributing to the demand-side response needed as renewable energy production increases.  This requires investing in the capacity and security of supply of the electricity networks. 

“The role of electricity networks in implementing the clean transition is key to achieving Finland's carbon neutrality targets by 2035. Investments started today will be completed at the end of this decade, and promoting energy independence, security of supply and the clean transition in Finland is already urgent. The Energy Authority's new regulation model for 2024–2031 needs to enable the profitability of investments also in the future,” says Noora Neilimo-Kontio, Caruna's CFO and Deputy CEO. 

Despite the challenges in the operating environment, operational performance has improved in a positive direction. The System Average Interruption Duration Index (SAIDI), which measures the average customer-specific outage time for electricity distribution, decreased from 53 minutes to 27 minutes. The Net Promoter Score (NPS), representing customer satisfaction, increased to 32 (from 29), and the Accident Frequency Rate, which reflects improvements in workplace safety, developed positively, being 2.1 (compared to 5.7). Stable liquidity enables further development of operations in the future.  

Key figures, January–June 2023:  

EUR million or as indicated H1 2023 H1 2022 2022 
Net sales  246.1 253.6 484.6 
Operating profit  103.7 99.5 184.7 
Operating profit (% of net sales)  42.1 39.2 38.1 
Profit for the reporting period 37.7 33.4 50.8 
Investments 63.5 58.5 133.6 
Cash flow after investments 49.4 54.9 47.6 
Interest-bearing net debt (at the end of the period) 3,261.4 3,270.4 3,311.7 


Caruna Group Half Yearly Report

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