Operating environment

Despite the impacts of the Russian attack on Ukraine, increased inflation and general economic uncertainty, the market situation in Enersense’s  business areas remained favourable during the first quarter of the year. Although the prices of raw materials, other materials and energy, which have  risen as a result of the war, have stabilised and partly returned to pre-war levels, overall inflation in the markets relevant to Enersense remains high,  with a particular impact on material and salary costs and thus on the profitability of projects.

Increased uncertainty about economic development and higher operational and financial costs arising from high inflation had a negative impact on  the investment environment of certain customers in some respects. 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.

The coronavirus pandemic continues to cause infections, but it is treated as a normal virus disease and no longer involves exceptional restriction  measures.

(Business Review Q1 2023, 8 May2023)