Operating environment

The ongoing energy transition is a global phenomenon that will change the energy system towards low-emission and renewable energy solutions. The impacts of the energy transition will be reflected in changes in energy production methods, and the transition will also shape society in many ways in the future, with various sectors becoming more closely intertwined. In 2022, long-term business drivers that support Enersense’s business remained unchanged despite uncertainties related to the macroeconomy and business in general.

The Russian attack on Ukraine in February 2022 caused global geopolitical tensions and uncertainty to increase, and had a negative impact on global economic development. This was also reflected in Enersense’s operating environment during 2022. The availability of certain materials decreased, especially during the first half of the year, and the lack of supply caused prices to fluctuate considerably, which is why some customers postponed project starts. As a result of the war, electricity and fuel prices, in particular, increased significantly. Although prices began to decrease markedly towards the end of the year and some raw material prices are back at their pre-war levels, inflation continues to be elevated in the markets that are relevant to Enersense. This is particularly evident in the Baltic countries, where high wage inflation has increased costs.

Increased uncertainty about economic development and the increase in interest rates caused by high inflation have had a negative impact on customers’ investment environment. On the other hand, self-sufficiency in zero-emission energy solutions is being increased in Europe, which may cause significant projects to start earlier than planned. Overall, the general market situation in Enersense’s business areas remained good in 2022, despite the impacts of the Russian attack on Ukraine. After a calmer summer, coronavirus infections began to increase towards the end of the year, but their impacts on business operations have been limited.

(Financial Statement Bulletin 27 Feb 2023)