Near-term risks

The on-going international conflicts maintain geopolitical tensions and uncertainty about the development of the global economy. Inflation in the markets relevant to Enersense continues to be high, which is reflected especially in the Baltic countries, where wage inflation is causing costs to increase. The prices of materials are also higher than usual, and there is a risk that old contracts in particular cannot be renegotiated.

Increased uncertainty about economic development and the increase in operating and financial costs caused by high inflation have had a negative impact on investment environment. This may lead to a deterioration in the financial position of customers and further to a decrease in demand for Enersense’s services and slower-than-expected sales development. Changes in the investment environment may have a negative impact on Enersense’s financial position, through factors such as the availability of financing, as well as value measurement of certain items in the balance sheet.

The tight competitive situation in many of Enersense’s business areas and the offerings of any new competitors may cause pressure in terms of project sales prices and profitability. Challenges in availability of skilled workforce may impact Enersense’s operation, if realised.

(Financial statement bulletin, 29 February 2024)