Report of Operations 1 January – 31 December 2024
Westenergy Ltd was entered in the Finnish Trade Register on 1 January 2008. The company’s trade register number is 2165379-9 and its domicile is Mustasaari. The company is owned by Oy Botniarosk Ab, Ab Ekorosk Oy, Lakeuden Etappi Oy, Loimi-Hämeen Jätehuolto Oy, Millespakka Oy, Ab Stormossen Oy and Vestia Oy. The past financial year was the 15th in the company’s history. Westenergy’s main line of business is operating a waste-to-energy plant. The company operates on a cost basis and does not pay dividends.
Westenergy has founded and owns 100 percent of Eccu Oy which is registered entered in the Finnish Trade Register on 14 March 2024. The company’s business activity is to construct and manage an industrial facility that captures and processes carbon dioxide generated during waste incineration, along with all related operations.
The company has constructed a facility specialising in the energy recovery and processing of non-recyclable municipal waste on its own property in Koivulahti, Mustasaari. It provides services to its shareholders on a cost-price basis. The facility was completed and commissioned in August 2012. The energy produced by the facility is processed into electricity and district heating in a system owned by a partner company Vaasan Sähkö Oy.
During 2024, the operational rate of Westenergy’s plant was excellent, which helped keep maintenance costs in line with the plan. The annual maintenance shutdown was carried out as scheduled, and since no major unexpected breakdowns or repair needs occurred during the year, the plant was able to operate at a high utilisation rate throughout the year. This resulted in maintenance costs being lower than forecasted. However, during the year, a significant write-down was made on old spare parts in the inventory, which in turn increased material costs in the income statement. Additionally, the consistency of the waste delivered to the plant contributed to achieving usability targets. A total of 193,906 tons of waste was processed at the plant, exceeding the target by 1.7 percent.
The year 2024 was also the first time we received waste from abroad. The logistics of waste deliveries were managed excellently. No waste needed to be baled during the year, which also resulted in lower costs compared to previous years. The total amount of waste deliveries during the year was 197,869 tons.
On the energy markets, fluctuations in electricity prices have increasingly influenced energy production decisions. For Westenergy, this meant that electricity production was significantly lower than in previous years, but the price of supplied electricity was better than expected. In the district heating sector, the delivered volumes were slightly below projections, mainly due to the warm summer and autumn. However, the average price of district heating was slightly higher than expected.
Westenergy Ltd’s turnover exceeded expectations and was slightly better than estimated. The following table presents the key financial figures from the past five years.
| KEY FINANCIAL FIGURES | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Turnover, MEUR | 18,9 | 14,4 | 16,6 | 19,7 | 16,5 |
| Amount of utilised waste, tonnes | 193 906 | 188 097 | 194 612 | 200 236 | 193675 |
| Utilisation rate, % | 95,5 | 94,5 | 96,0 | 98,8 | 94,1 |
The consistency of waste quality, as well as the stability of plant production and high availability, have also helped keep chemical consumption under control. Additionally, the average prices of chemicals throughout the year have remained moderate. As a result, chemical costs have significantly decreased compared to the previous year and were also lower than the targets set for the past year.
The generation and processing of bottom slag continued as in previous years. Development efforts in the further processing of bottom slag have yielded positive results over the years in collaboration with our partners, Lakeuden Etappi Oy and Suomen Erityisjäte Oy. The handling of bottom slag, as well as the related operating models and processes, have been stabilised, making them cost-effective and predictable. Suomen Erityisjäte Oy was responsible for the treatment of bottom slag during the financial period.
During the 2024 financial year, the company’s total investments amounted to EUR 983,690. The most significant investment was the design of Eccu Oy, a carbon dioxide capture plant. Other major investments included the renewal of LabLoop, which is part of the flue gas purification system, the replacement of rotary valves in the bag filter, and the development of a new maintenance management system. Otherwise, during the 2024 financial year, investments were primarily focused on projects strengthening IT and cybersecurity. Westenergy’s investments during the financial year have contributed to an increase in depreciation. However, overall, depreciation has decreased compared to the previous year. No changes have been made to the depreciation plan.
The company’s cash position has improved positively during the review period. This has been influenced by the decision not to repay certain loans, thereby accumulating funds in cash reserves for future investments. Westenergy’s financial position is strong, and the company has met all its financial obligations. Regarding financing costs, interest rates remained relatively stable, and the company has hedged a significant portion of its loans. The interest income for the past year was positive.
We have continued to refine our strategic work during the past financial year. The company’s long-term strategy is largely defined by the EU’s and Finland’s goals concerning climate and circular economy issues. Westenergy develops and seeks future solutions together with its owner companies and other potential partners. Westenergy is strongly committed to supporting studies and research projects based on circular economy thinking and climate-related issues. The company has closely collaborated with numerous partners in these areas. Based on our strategic work, we have advanced development projects during the financial year, focusing on carbon dioxide capture and utilisation, as well as improving waste identification and recycling.
In 2023, we signed an agreement with CPC Finland Oy and Prime Capital AG for the development, construction, and operation of a carbon dioxide recovery plant to be located at our plant. This work has been systematically advanced throughout 2024. The plant will recover carbon dioxide from the flue gases of Westenergy’s plant. The recovered carbon dioxide will be liquefied, and a significant part of it will be sent to Kristiinankaupunki for use in the power-to-x plant of Prime Capital and CPC.
The FEED (Front-End Engineering Design) phase of the facility was launched in 2024 in collaboration with selected partners. Andritz AG was chosen as the contract partner for the FEED design, while Ramboll Danmark A/S is participating in the project as the Owner’s Engineer. The design work is expected to be completed during the first half of 2025, allowing the final investment decision to be made after mid-2025.
For this carbon dioxide recovery plant, Westenergy has established and currently fully owns Eccu Oy. Westenergy will be responsible for operating the carbon dioxide recovery process. The total investment in the plant amounts to approximately EUR 140 million, and the Finnish Ministry of Economic Affairs and Employment has decided to grant an energy investment subsidy of EUR 20 million to the project. The project promotes decoupling from fossil fuels and is part of the carbon-neutral district heating solution for the Vaasa region. The project is a truly significant phase in Westenergy’s strategy towards carbon neutrality.
Another significant project that commenced in 2024 is the Ekoälyä project. The aim of this initiative is to collect and refine data on waste by utilising sensor fusion and artificial intelligence. The data obtained from the logistical chain will enable better and more efficient waste management in accordance with circular economy objectives. For Westenergy one of the key goals is to reduce harmful emissions at the plant, as non-combustible materials can be identified already during the collection phase and directed to the appropriate processing route. The project is funded by the European Regional Development Fund (ERDF) and is part of the Renewing and Competent Finland 2021–2027 EU regional and structural policy program. The project will run until the end of 2026.
Westenergy is committed to following the quality, environmental and occupational health and safety policies that the company has defined. Through certified systems, Westenergy aims to continuously improve the overall quality and cost–efficiency of its operations. An occupational health and safety system is used to manage known risks, maintain the health and working ability of employees and improve occupational health and safety. Westenergy aims to manage environmental risks with actions and programmes defined in the environmental system. Westenergy reports new developments concerning quality, the environment and occupational health and safety to stakeholders, primarily in the form of an annual report. The systems were re-certified through an assessment by an independent external evaluator during 2024. The systems were re-certified through an assessment by an independent external evaluator during 2024. During 2024, IT and cyber security were also systematically and purposefully developed with partners. Also, employees were trained and drilled in IT and cyber security. In 2024, Westenergy assessed the standard and management system needs regarding IT and cyber security. At the beginning of 2025, Westenergy started the implementation of the information security management system (ISO 27001).
The company employed 37 people at the beginning of the financial period and 40 people at the end of the financial period. The average number of employees during the year was 39. The salaries and remuneration paid in 2024 totalled EUR 2,93. The following table includes some key figures related to the personnel.
There was a slight increase in sick leave during the review period, primarily due to a few individual long-term absences. One accident occurred during the period.
| KEY FIGURES RELATED TO THE PERSONNEL | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Number of employees, 1 Jan | 37 | 36 | 34 | 33 | 33 |
| Number of employees, 31 Dec | 40 | 37 | 37 | 34 | 33 |
| Average number of employees | 39 | 40 | 39 | 36 | 37 |
| Salaries and remuneration, MEUR | 2,93 | 2,83 | 2,61 | 2,33 | 2,37 |
| Absences due to illness, % of total working time (* | 3,71 | 3,37 | 3,23 | 2,63 | 2,43 |
| Number of accidents at work | 1 | 0 | 0 | 0 | 1 |
| *) Including sick leave, absences due to the illness of a child and absences due to accidents during work and leisure time |
The company’s Annual General Meeting was held on 23 May 2024. During the meeting, the company’s financial statements for the financial year 1 January 2023 – 31 December 2023, were approved, and discharge from liability was granted to the members of the Board of Directors and the CEO.
In the past financial period, the Board of Directors consisted of Paavo Eloniemi (Chair), Teuvo Suominen (Vice-Chair), Ragnvald Blomfeldt Paavo Hankonen, Jouko Huumarkangas, Stefan Storholm and Harri Virtanen. The Board of Directors convened a total of 11 times during the past financial year. Olli Alhoniemi acted as the Managing Director of the company. The company’s regular auditor was the audit firm Ernst & Young Oy with Kristian Berg, Authorised Public Accountant (KHT), as the principal auditor.
The following table presents the company’s shareholders, the number of shares they hold, and their ownership percentage at the end of the financial year.
| SHARES AND OWNERSHIP STRUCTURE | Shares | Ownership, % |
|---|---|---|
| Oy Botniarosk Ab | 1 050 000 | 6,19 % |
| Millespakka Oy | 600 000 | 3,54 % |
| Vestia Oy | 3 100 000 | 18,27 % |
| Lakeuden Etappi Oy | 4 200 000 | 24,75 % |
| Ab Stormossen Oy | 3 953 873 | 23,30 % |
| Loimi-Hämeen Jätehuolto Oy | 3 000 000 | 17,68 % |
| Ab Ekorosk Oy | 1 062 819 | 6,26 % |
| Subscribed capital, EUR | 16 966 692 | 100,00 % |
There have been no other significant events after the end of the financial period.
The company’s registered share capital was EUR 16.966.692 and there were 16.966.692 shares in the company at the end of the financial period. The shares are subject to a redemption clause set in the Articles of Association, according to which other shareholders have the primary right to redeem shares, and the company itself has the secondary right if the shares are to be transferred to a third party.
Due to the cost basis, it is not appropriate to compare the key figures to profit-making companies when analysing Westenergy’s operations, financial position and results.
In accordance with Section 3 of the Articles of Association, the company does not distribute dividends. The Board of Directors proposes that the result for the period, EUR -1205,02 be transferred to the profit and loss account under the company’s equity.
Vaasa, 27 February 2025
Board of Directors of Westenergy Ltd
Profit and loss statement
| Currency EUR | 1.1.2024 - 31.12.2024 | 1.1.2023 - 31.12.2023 | ||
|---|---|---|---|---|
| TURNOVER | 18 863 595,54 | 14 419 915,27 | ||
| Other income from operating activities | 186 721,02 | 24 878,60 | ||
| Raw materials and services | ||||
| Raw materials, supplies and consumables | ||||
| Purchases during the financial period | -2 660 129,80 | -3 182 862,60 | ||
| Increase/decrease in inventories | -981 688,88 | 181 636,32 | ||
| External services | -2 438 187,77 | -2 818 042,92 | ||
| Raw materials and services total | -6 080 006,45 | -5 819 269,20 | ||
| Personnel costs | ||||
| Wages and salaries | -2 951 836,59 | -2 783 630,11 | ||
| Social security expenses | ||||
| Pension expenses | -533 999,81 | -483 367,56 | ||
| Other social security expenses | -60 340,54 | -98 534,17 | ||
| Personnel costs, total | -3 546 176,94 | -3 365 531,84 | ||
| Amortisation, depreciation and impairment | ||||
| Depreciation according to the plan | -5 405 947,70 | -5 597 685,49 | ||
| Amortisation, depreciation and impairment total | -5 405 947,70 | -5 597 685,49 | ||
| Other operating expenses | -2 211 650,42 | -2 070 063,79 | ||
| OPERATING PROFIT (LOSS) | 1 806 535,05 | -2 407 756,45 | ||
| Financial income and expenses | ||||
| Other interest and financial income | 121 326,17 | 87,54 | ||
| Interest and other financial expenses | -948 162,18 | -908 171,30 | ||
| Financial income and expenses total | -826 836,01 | -908 083,76 | ||
| PROFIT (LOSS) BEFORE EXTRAORDINARY | 979 699,04 | -3 315 840,21 | ||
| APPROPRIATIONS AND TAXES | ||||
| Appropriations | ||||
| Increase (-) or decrease (+) in depreciation difference | -983 922,00 | 3 308 004,03 | ||
| Income taxes | 3 017,94 | 2 307,84 | ||
| PROFIT/LOSS FOR THE FINANCIAL PERIOD | -1 205,02 | -5 528,34 | ||
Balance sheet
| Currency EUR | 31.12.2024 | 31.12.2023 | |||
|---|---|---|---|---|---|
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Intangible rights | 149 388,11 | 99 164,04 | |||
| Intangible assets total | 149 388,11 | 99 164,04 | |||
| Tangible assets | |||||
| Land and waters | 1 297 460,86 | 1 297 460,86 | |||
| Buildings and structures | 20 694 922,78 | 22 512 499,88 | |||
| Machinery and equipment | 23 503 438,52 | 26 356 313,10 | |||
| Other tangible assets | 1 448 603,83 | 1 641 591,01 | |||
| Advance payments and construction in progress | 123 437,20 | 252 706,48 | |||
| Tangible assets total | 47 067 863,19 | 52 060 571,33 | |||
| Investments | |||||
| Participating interests | 520 226,12 | 0,00 | |||
| NON-CURRENT ASSETS TOTAL | 47 737 477,42 | 52 159 735,37 | |||
| CURRENT ASSETS | |||||
| Inventories | |||||
| Raw materials and consumables | 873 772,02 | 1 855 460,90 | |||
| Inventories total | 873 772,02 | 1 855 460,90 | |||
| Receivables | |||||
| Current | |||||
| Trade receivables | 1 226 844,92 | 1 361 883,21 | |||
| Other receivables | 40 924,82 | 6 326,75 | |||
| Accrued income | 218 558,93 | 309 469,54 | |||
| Receivables, current total | 1 486 328,67 | 1 677 679,50 | |||
| Cash in hand and at banks | 7 935 785,16 | 2 005 948,72 | |||
| CURRENT ASSETS TOTAL | 10 295 885,85 | 5 539 089,12 | |||
| ASSETS TOTAL | 58 033 363,27 | 57 698 824,49 | |||
| LIABILITIES | |||||
| EQUITY | |||||
| Subscribed capital | |||||
| Subscribed capital | 16 966 692,00 | 16 966 692,00 | |||
| Other reserves | |||||
| Reserve for invested non-restricted equity | 5 485 072,00 | 5 485 072,00 | |||
| Fair value reserve | 65 526,35 | 202 100,00 | |||
| Retained earnings (losses) | -35 815,22 | -30 286,88 | |||
| Profit/loss for the financial period | -1 205,02 | -5 528,34 | |||
| EQUITY, TOTAL | 22 480 270,11 | 22 618 048,78 | |||
| ACCUMULATED APPROPRIATIONS | |||||
| Depreciation difference | 2 073 049,06 | 1 089 127,06 | |||
| Appropriations total | 2 073 049,06 | 1 089 127,06 | |||
| LIABILITIES | |||||
| Long-term | |||||
| Loans from credit institutions | 16 900 000,00 | 17 600 000,00 | |||
| Long-term, total | 16 900 000,00 | 17 600 000,00 | |||
| Long-term, total | |||||
| Loans from credit institutions | 13 700 000,00 | 13 700 000,00 | |||
| Deferred income | 549 988,79 | 384 088,65 | |||
| Accounts payable | 874 437,42 | 851 729,04 | |||
| Other liabilities | 782 267,30 | 798 800,60 | |||
| Accrued liabilities | 673 350,59 | 657 030,36 | |||
| Current, total | 16 580 044,10 | 16 391 648,65 | |||
| LIABILITIES TOTAL | 33 480 044,10 | 33 991 648,65 | |||
| LIABILITIES TOTAL | 58 033 363,27 | 57 698 824,49 | |||
Financial statement
| Currency EUR | 31.12.2024 | 31.12.2023 | ||
|---|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Profit (loss) before appropriations and taxes | 979 699,04 | -3 315 840,21 | ||
| Adjustments: | ||||
| Depreciation according to the plan | 5 405 947,70 | 5 597 685,49 | ||
| Financial income and expenses | 826 836,01 | 908 083,76 | ||
| Capital gains from fixed assets | 0,00 | 0,00 | ||
| Cash flow before change in working capital | 7 212 482,75 | 3 189 929,04 | ||
| Change in working capital: | ||||
| Increase(-)/decrease(+) in short-term interest-free receivables | 23 651,71 | -54 949,32 | ||
| Increase(-)/decrease(+) in inventories | 981 688,88 | -181 636,32 | ||
| Increase(+)/decrease(-) in short-term interest-free liabilities | 222 538,86 | 675 547,17 | ||
| Cash flow from operations before financial items and taxes | 8 440 362,20 | 3 628 890,57 | ||
| Interest paid and payments for financial expenses from operations | -948 162,18 | -908 171,30 | ||
| Financial income received from operations | 121 326,17 | 87,54 | ||
| Cash flow before extraordinary items | 7 613 526,19 | 2 720 806,81 | ||
| CASH FLOW FROM OPERATING ACTIVITIES (A) | 7 613 526,19 | 2 720 806,81 | ||
| CASH FLOW FROM INVESTMENTS: | ||||
| Investments in tangible and intangible assets | -463 463,63 | -678 846,06 | ||
| Investments in other financial assets | -520 226,12 | 0,00 | ||
| CASH FLOW FROM INVESTMENTS (B) | -983 689,75 | -678 846,06 | ||
| CASH FLOW FROM FINANCING: | ||||
| Paid up equity increase | - | 1 062 819,00 | ||
| Change in reserve for invested unrestricted capital | - | 1 581 199,00 | ||
| Repayment of long-term loans | -700 000,00 | -3 700 000,00 | ||
| CASH FLOW FROM FINANCING (C) | -700 000,00 | -1 055 982,00 | ||
| CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) INCREASE(+)/DECREASE(-) | 5 929 836,44 | 985 978,75 | ||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD | 2 005 948,72 | 1 019 969,97 | ||
| CASH AND CASH EQUIVALENTS AT THE END OF PERIOD | 7 935 785,16 | 2 005 948,72 | ||
Accounting principles
Applied provisions
The financial statements are prepared in accordance with the valid Accounting Act.
Derivates
The company has signed a derivate contract in order to manage the volatility of interest rates. Hedge accounting is applied to the derivates. Hedge instruments’ impact on profit is recognised together with the hedged item. Unrealised changes in value are recognised in the fair value reserve of equity. The fair value is calculated taking into account the deferred tax receivables.
Valuation and matching principles and methodology
Tangible and intangible assets recorded in the fixed assets of the company are valued at the historical cost of acquisition.
The acquisition costs of reproducible assets are written off in accordance with the established plan. The depreciation plan is determined on the basis of economic life.
The estimated basis of planned depreciation and the changes thereof:
| CLASS OF ASSETS | Assumed life, years / residue of initial outlay, % | depreciation method | ||
|---|---|---|---|---|
| Intangible rights | 5 years | straight-line depreciation | ||
| Building | 7% | declining-balance depreciation | ||
| Administrative building’s share | 4% | declining-balance depreciation | ||
| Machinery and equipment, production machines and tools | 5 – 20 years | straight-line depreciation | ||
| Long-term expenditure | 10 years | straight-line depreciation | ||
Valuation of inventories
Inventories are valued at the historical cost of acquisition in accordance with the FIFO principle.
Pensions
The pension cover of the company’s employees is managed by an external pension insurance company. Pension costs are recognised as expenses in the year of accrual.
Comparability of the result
The results for this and the previous period are comparable.
Group companies
The consolidated financial statements are not prepared in accordance with section KPL6:3.1, as the ownership in the subsidiary is intended to be temporary and the majority of the shares are to be divested.
Information on the subsidiary excluded from consolidation.
Eccu Oy, domiciled in Mustasaari, share of ownership 100 %, according to the financial statements at 31 December 2024, share capital was EUR 520 331,32 and the result EUR 105,20.
Notes to the profit and loss statement
| WAGES AND SALARIES | 2024 | 2023 | |
|---|---|---|---|
| In the financial period, the company employed an average of | 39 pers. | 40 pers. | |
| Remuneration for the member of Board and the Managing Director | 230 972,97 | 232 591,80 | |
| DEPRECIATION AND AMORTISATION | 2024 | 2023 | |
| Depreciation according to the plan | |||
| Intangible rights depreciation | 62 899,43 | 67 069,99 | |
| Depreciation of other long-term expenses | 192 987,18 | 192 987,18 | |
| Depreciation of buildings and structures | 1 817 577,10 | 2 029 624,28 | |
| Depreciation of machinery and equipment | 3 332 483,99 | 3 308 004,04 | |
| Total | 5 405 947,70 | 5 597 685,49 | |
| OTHER OPERATING EXPENSES | 2024 | 2023 | |
| Voluntary social security expenses | 239 082,95 | 237 663,83 | |
| Property and premises expenses | 793 376,48 | 629 608,64 | |
| Other expenses | 1 179 190,99 | 1 202 791,32 | |
| Total | 2 211 650,42 | 2 070 063,79 | |
| Auditors’ fees | 19 000,00 | 19 200,00 | |
| OTHER OPERATING EXPENSES | 2024 | 2023 | |
| Interest income | 121 326,17 | 87,54 | |
| Korkotulot | -948 162,18 | -908 171,30 | |
| Financial income and expenses, total | -826 836,01 | -908 083,76 | |
Notes to the balance sheet
| INTANGIBLE ASSETS | 2024 | 2023 | |
|---|---|---|---|
| Intangible rights | |||
| Historical cost, 1 Jan | 389 377,70 | 389 377,70 | |
| Increase | 113 123,50 | 0,00 | |
| Historical cost, 31 Dec | 502 501,20 | 389 377,70 | |
| Accumulated amortisation, depreciation and impairment, 1 Jan | 290 213,66 | 223 143,67 | |
| Amortisation in the financial period | 62 899,43 | 67 069,99 | |
| Accumulated amortisation | 353 113,09 | 290 213,66 | |
| Carrying amount | 149 388,11 | 99 164,04 | |
| TANGIBLE ASSETS | 2024 | 2023 | |
|---|---|---|---|
| Land areas | |||
| Historical cost, 1 Jan | 1 297 460,86 | 1 297 460,86 | |
| Increase | 0,00 | 0,00 | |
| Historical cost, 31 Dec | 1 297 460,86 | 1 297 460,86 | |
| Buildings and structures | |||
| Historical cost, 1 Jan | 37 374 481,15 | 37 352 120,15 | |
| Increase | 0,00 | 22 361,00 | |
| Depreciations | |||
| Historical cost, 31 Dec | 37 374 481,15 | 37 374 481,15 | |
| Accumulated amortisation, depreciation and impairment, 1 Jan | 14 861 981,27 | 12 832 356,99 | |
| Amortisation in the financial period | 1 817 577,10 | 2 029 624,28 | |
| Accumulated amortisation | 16 679 558,37 | 14 861 981,27 | |
| Carrying amount | 20 694 922,78 | 22 512 499,88 | |
| Machinery and equipment | |||
| Historical cost, 1 Jan | 68 701 819,44 | 68 270 441,46 | |
| Increase | 479 609,41 | 431 377,98 | |
| Depreciations | |||
| Historical cost, 31 Dec | 69 181 428,85 | 68 701 819,44 | |
| Accumulated amortisation, depreciation and impairment, 1 Jan | 42 345 506,34 | 39 037 502,30 | |
| Amortisation in the financial period | 3 332 483,99 | 3 308 004,04 | |
| Accumulated amortisation | 45 677 990,33 | 42 345 506,34 | |
| Carrying amount | 23 503 438,52 | 26 356 313,10 | |
| Other tangible assets | |||
| Historical cost, 1 Jan | 1 931 071,78 | 1 931 071,78 | |
| Increase | 0,00 | 0,00 | |
| Depreciations | 0,00 | 0,00 | |
| Accumulated amortisation, depreciation and impairment, 1 Jan | 1 931 071,78 | 1 931 071,78 | |
| Accumulated amortisation, depreciation and impairment, 1 Jan | 289 480,77 | 96 493,59 | |
| Amortisation in the financial period | 192 987,18 | 192 987,18 | |
| Accumulated amortisation | 482 467,95 | 289 480,77 | |
| Carrying amount | 1 448 603,83 | 1 641 591,01 | |
| RECEIVABLES | 2024 | 2023 | |
|---|---|---|---|
| Current | |||
| Trade receivables | 1 226 844,92 | 1 361 883,21 | |
| Other receivables | 33 575,25 | 1 995,12 | |
| Deferred tax assets | 7 349,57 | 4 331,63 | |
| Accrued income | 136 650,99 | 56 844,54 | |
| Derivates | 81 907,94 | 252 625,00 | |
| Current receivables, total | 1 486 328,67 | 1 677 679,50 | |
| EQUITY | 31.12.2024 | 31.12.2023 | |
|---|---|---|---|
| Committed | |||
| Share capital 1 Jan | 16 966 692,00 | 15 903 873,00 | |
| Change in the financial period | 0 | 1 062 819,00 | |
| Share capital 31 Dec | 16 966 692,00 | 16 966 692,00 | |
| Fair value reserve | 65 526,35 | 202 100,00 | |
| Committed capital, total, 31 Dec | 17 032 218,35 | 17 168 792,00 | |
| Free | |||
| Reserve for invested non-restricted equity at the beginning of the period | 5 485 072,00 | 3 903 873,00 | |
| Change in the financial period | 0 | 1 581 199,00 | |
| Reserve for invested non-restricted equity at the end of the period | 5 485 072,00 | 5 485 072,00 | |
| Retained earnings | -35 815,22 | -30 286,88 | |
| Distribution of dividends | 0 | 0 | |
| Profit/loss for the financial period +/- | -1 205,02 | -5 528,34 | |
| Unrestricted equity, total | 5 448 051,76 | 5 449 256,78 | |
| EQUITY, TOTAL | |||
| Distributable equity | 5 448 051,76 | 5 449 256,78 | |
| Number of shares | 16 966 692 | 16 966 692 | |
| SPECIFICATION OF LIABILITIES | 2024 | 2023 | |
|---|---|---|---|
| Non-current | |||
| Loans from credit institutions | 16 900 000,00 | 17 600 000,00 | |
| Current | |||
| Loans from credit institutions | 13 700 000,00 | 13 700 000,00 | |
| Accounts payable | 874 437,42 | 851 729,04 | |
| Accrued liabilities | 673 350,59 | 657 030,36 | |
| Other liabilities | 765 885,71 | 748 275,60 | |
| Deferred tax liabilities | 16 381,59 | 50 525,00 | |
| Deferred income | 549 988,79 | 384 088,65 | |
| TOTAL | 33 480 044,10 | 33 991 648,65 | |
| CONTINGENT LIABILITIES AND OTHER COMMITMENTS | 2024 | 2023 | |
|---|---|---|---|
| Debt guaranteed by a mortgage on the real estate or company | |||
| Financial loans | 30 600 000,00 | 31 300 000,00 | |
| Business mortgage | 110 000 000,00 | 110 000 000,00 | |
| Real estate mortgage | 110 000 000,00 | 110 000 000,00 | |
| The terms of the loan contain special conditions | |||
| Bank account limits | 200 000,00 | 200 000,00 | |
| of which used | 0 | 0 | |
| Other collateral | |||
| Bank guarantee | 3 100 000,00 | 3 100 000,00 | |
| OTHER LIABILITIES/ | 2024 | 2023 | |
| Leasing | 59 222,42 | 76 658,96 | |
| of which maturing in 2024 | 42 628,36 | 48 864,63 | |
| Liability to refund VAT for real estate investments | 1 551 682,14 | 1 807 854,49 | |
Details on the derivative contracts that hedge against the interest rate risk
The notional amount of the interest rate swap contract is EUR 9 000 000, from 8 December 2017 to 8 December 2027, with the interest rate being 3-month Euribor. The company receives 3-month Euribor and pays fixed interest.
This interest rate swap contract hedges Westenergy Ltd’s loan of MEUR 12
The interest rate swap cash flows are recognized in profit or loss for the same periods as the interest flows of the hedged loan until 8 December 2027.
| INTEREST RATE SWAP CONTRACT | 2024 | 2023 |
|---|---|---|
| The fair value of the contract at the date of closure of the accounts: | 81 907,94 | 252 625,00 |
| LIABILITIES DUE IN MORE THEN FIVE YEARS | 2024 | 2023 |
|---|---|---|
| Financial institution loans | 5 100 000,00 | 5 800 000,00 |
The Board of Directors’ proposal on the use of the non-restricted equity
The Board proposes that no dividends will be paid.
ACCOUNTING BOOKS USED IN THE FINANCIAL PERIOD
Financial statements Digital in the archive for documents
Balance sheet specifications Digital in the archive for documents
Chart of accounts and
balance list Digital in the archive for documents
General journal Digital in the archive for documents
General ledger Digital in the archive for documents
VOUCHER TYPES AND STORING METHODS
ACC – Matching Digital in the Fennoa system
BA1 – Bank account 1 Digital in the Fennoa system
GL – Memo Digital in the Fennoa system
IN – Sales invoice Digital in the Fennoa system
OLD – Import Digital in the Fennoa system
PU – Purchase invoice Digital in the Fennoa system
TI – Travel expense report Digital in the Fennoa system
VAT – Value added tax Digital in the Fennoa system
Signing of the financial statements
(signed electronically)
Paavo Eloniemi
Chair of the Board
Olli Alhoniemi
Managing Director
Ragnvald Blomfeldt
Board member
Paavo Hankonen
Board member
Jouko Huumarkangas
Board member
Stefan Storholm
Board member
Teuvo Suominen
Board member
Harri Virtanen
Board member
AUDITOR’S NOTE
Based on the audit I performed, I have issued an audit report today.
Ernst & Young Oy
Audit firm
Kristian Berg, CPA
AUDITOR’S REPORT
To the Annual General Meeting of Westenergy Oy
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Westenergy Oy (business identity code 2165379-9) for the year ended 31 December 2024. The financial statements comprise the balance sheet, income statement, cash flow statement and notes.
In our opinion, the financial statements give a true and fair view of the company’s financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in
Finland and comply with statutory requirements.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the company’s ability to continue as going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the company or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other reporting requirements
Other information
The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report but does not include the financial statements and our auditor’s report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor’s report and the Annual Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Our responsibility also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions.
If, based on the work we have performed, we conclude that there is a material misstatement of the report of the Board of Directors, we are required to report that fact. We have nothing to report in this regard.
Vaasa 29.3.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Kristian Berg
Authorized Public Accountant
