Near-term risks

The Russian attack on Ukraine, which began in February 2022, continues and maintains geopolitical tensions and uncertainty about the development of the global economy. The prices of electricity, fuels and certain raw materials, which increased significantly as a result of the war, have showed signs of stabilisation, but inflation continues to be high in markets relevant to Enersense. This is particularly evident in the Baltic countries, where high wage inflation is increasing costs. Geopolitical uncertainty may also be reflected in labour availability, especially in the Baltic countries and elsewhere in Eastern Europe. In addition, any interruptions in energy supply that may occur because of availability issues caused by the war may have an adverse impact on Enersense’s business operations.

Increased uncertainty about economic development and the increase in interest rates caused by high inflation have had a negative impact on customers’ investment environment. This may lead to a deterioration in the financial position of Enersense and its customers, through factors such as the availability of financing, and further to a decrease in demand for Enersense’s services, slower-than-expected sales development and a decrease in the prices of the company’s services.

The business impacts of Covid-19 cases were minor in 2022. However, it is possible that the coronavirus pandemic will be prolonged further, new waves will emerge and restrictions will be tightened again.

(Financial Statement Bulletin 27 Feb 2023)