Operating environment

Despite the on-going international conflicts that maintain geopolitical tensions and uncertainty about the development of the global economy, the market situation in Enersense’s business areas remained favourable during the first quarter of the year 2024. Political strikes that were arranged in Finland in the beginning of the year were visible in the operating environment but they did not have any meaningful impact on Enersense’s operations. Although the prices of raw materials, other materials and energy, which rose as a result of Russia’s attack on Ukraine, have stabilised and partly returned to pre-war levels, overall inflation in some of the markets relevant to Enersense remained high.

Increased uncertainty about economic development and higher operational and financial costs arising from high inflation have had a negative impact on the investment environment of certain customers. On the other hand, given the changed geopolitical situation, energy solutions are becoming more self-sufficient in Europe, and this is expected to speed up the implementation of projects related to the energy transition. This trend is also supported by EU-level and national energy and climate policy.

(Q1 2024 Business Review, 26 April 2024)