Category: Uncategorized

Eco Baltia Group’s turnover reaches EUR 192.12 million in the first nine months of the year

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The Eco Baltia Group, the leading environmental resource management and recycling group in the Baltics, continued its steady growth in the first nine months of the year. For the reporting period the group reported a net turnover of EUR 192.12 million, representing a 19.2% increase compared to the same period last year. This growth was mainly driven by acquisitions made in recent years, a strong performance in the environmental management sector and focused efforts to increase automation and productivity across the Group’s companies.

The Group’s profit before tax for the reporting period was EUR 9.6 million, compared to EUR 0.24 million in the same period last year. Meanwhile, consolidated EBITDA reached EUR 36.07 million in the first nine months, an increase of 87.6% compared to the same period last year.

Māris Simanovičs, Chairman of the Management Board of AS Eco Baltia, commented:
“This year, the environmental resource management and recycling sector faced both growth opportunities and challenges. However, the results achieved confirm the sustainability of our business model and our ability to adapt to these challenges. One of Eco Baltia’s priorities has been to expand its business and service portfolio. Furthermore, this year, we have emphasized long-term development through investments in the establishment of new, modern facilities, the ‘greening’ of our transport fleet, and the digitization and automation of processes. These investments will not only help maintain our leading position in the Baltics but also drive the group’s sustainable growth in international markets.”

Sectoral developments and strategic investments

In the first quarter of this year, Eco Baltia Group continued its development in both the waste management and recycling sectors. At the beginning of the year, the group acquired a 40.4% stake in DAUGAVPILS SPECIALIZĒTAIS AUTOTRANSPORTA UZŅĒMUMS (Daugavpils Spec. ATU), expanding its service coverage in Latvia. In addition, the Group’s subsidiary Eco Baltia vide, as part of an association of persons, was awarded a contract to provide road maintenance services in the Latgale suburb and Central district of Riga for the next seven years, with a total contract value of EUR 77.4 million (excluding VAT). During the reporting period, work began on the acquisition of Eko Osta, which was finalized in October this year. The activities continue on the acquisition of the major stake of shares of Daugavpils Spec. ATU, with a merger notification submitted to the Competition Council in December.

Eco Baltia Group has also carried out significant infrastructure development projects this year, including investments of EUR 2.3 million in construction of waste sorting and recycling facilities in Rumbula and Liepāja. In the third quarter, Eco Baltia vide completed a new state-of-the-art waste sorting facility, the Resource Management Centre, with an investment of over EUR 11.7 million. The plant was inaugurated in October. Shortly afterwards, ITERUM (former name PET Baltija) opened its new PET bottle recycling plant, one of the largest in Northern Europe. The total investment amounts to more than €35 million, of which more than €10 million is contributed by “ITERUM”.

In Lithuania, the group investing EUR 18 million in the reconstruction of a waste sorting center in Vilnius, strengthening the implementation of circular economy principles in the Baltic States.

Focus on sustainability and employee well-being

“This year we have placed a strong emphasis on implementing and integrating sustainability strategies across Eco Baltia companies and on employee wellbeing. We invest approximately EUR 1 million a year annually in employee well-being, which includes skills development, training, insurance in order to increase Eco Baltia employers brand awareness. At the same time, given the labour shortage, we are taking steps towards automation and digitalisation to increase the efficiency and competitiveness of daily operations,” said M. Simanovičs.

As Eco Baltia’s operations are aligned with the principles of the circular economy and incorporate various sustainable business practices, efforts continued during the reporting period to implement a consolidated ESG (Environmental, Social and Governance) strategy across the Group’s main subsidiaries. The company also focused on improving workplace safety and internal culture by strengthening LEAN practices, promoting employee well-being, encouraging personal growth and developing new skills.

Latvia’s leading hazardous and environmentally harmful waste collection and recycling company, Ltd. (SIA) Eko Osta, which was fully acquired this year by JSC (AS) Eco Baltia, has been merged with Oil Recovery as of December 28 following a reorganization and will continue operations under its new name.

The acquisition of Eko Osta in October of this year was carried out through Eco Baltia group’s subsidiary Latvijas Zaļais punkts and its affiliated company, Oil Recovery. In December, a reorganization was completed, merging Eko Osta and Oil Recovery into a single entity that will continue operations under the “Oil Recovery” brand. The newly unified company will maintain its existing services in hazardous and environmentally harmful waste management. No changes are planned for the existing cooperation agreements and commitments with clients and partners.

Jānis Aizbalts, Head of the Environmental Sector at Eco Baltia Group, stated:
“Environmental sustainability is a continuously evolving process. We strive to offer a broader and more diversified portfolio of waste management and recycling services. Integrating a hazardous and harmful waste management company into the Eco Baltia group has allowed us to significantly expand our service offering, particularly in areas that have previously been challenging to address on a national scale.”

Oil Recovery (formerly Eko Osta) specializes in hazardous and environmentally harmful waste management and recycling, including the collection, transportation, treatment, and recycling of oil-contaminated wastewater, as well as environmental remediation and quality monitoring. The company also manages ship-generated waste in key Latvian ports, including Riga, Skulte, Salacgrīva, Engure, Lielupe, Mērsrags, and Roja, specifically focusing on the treatment of oil-related waste. Additionally, Oil Recovery collaborates with producer responsibility systems in Latvia, ensuring compliance with national regulations for the collection and recycling of hazardous and environmentally harmful waste.

Nauris Bertmanis, Chief Executive Officer of Oil Recovery, states: “Our goal is to establish this company as a stable and sustainable leader in the industry. The first steps include rebranding to align the company’s identity more closely with the international market – a key focus of our long-term strategy. Building on the services previously provided by Eko Osta, we plan to significantly expand our activities in the management of polluted water and the recycling of used oils under the Oil Recovery brand. To achieve these goals, we expect to invest approximately €1 million over the next year.”

About Oil Recovery (formerly Eko Osta)

Oil Recovery (formerly Eko Osta) is a leading hazardous and environmentally harmful waste management and recycling company. Originally established as Eko Osta in 1999, the company was reorganized and renamed Oil Recovery in 2024 following its acquisition by Eco Baltia. The company employs over 50 professionals, and its 2023 revenue reached €7.8 million.

Eco Baltia Group’s Lithuanian company Ecoservice’s total claim against Compensa reaches €13.6 million

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The Lithuanian environmental services company Ecoservice, part of the largest environmental resource management and recycling group in the Baltics, Eco Baltia, has clarified its civil claim against the Latvian branch of “Compensa Vienna Insurance Group” in court. Following the submission of additional calculations and evidence related to the damages of business interruption, the total amount of the claim reaches EUR 13.6 million.

As reported previously, the insurance claim relates to the losses suffered by Ecoservice when, on 5 August 2023, a fire at Ecoservice’s waste sorting centre caused widespread damage, destroying the building, the waste sorting equipment, part of the inventory and forcing a partial shutdown of its operations.

Despite the fact that the Department of Environmental Protection and the Department of Fire Protection and Rescue carried out investigations and established the essential circumstances of the fire, the insurer has failed to fulfill its obligations and has not paid insurance compensation in accordance with the terms of the insurance contract.

“We hope that Compensa will start fulfilling its contractual obligations and will compensate Ecoservice for the damages suffered by the company without delaying the process,” says Jurgita Nacevičienė, Manager of Ecoservice.

The claim was filed with the Riga City Court at the beginning of October of this year, and it contained calculations and evidence for a part of the insurance claim in the amount of EUR 7.4 million. Now, additional evidence and calculations related to the business interruption costs were added, bringing the total claim amount to EUR 13.6 million. The losses were calculated by international financial experts based on the company’s operational data and collected evidence. This was necessary as the insurance contract did not provide clear instructions for these calculations, and the insurer, during the damage administration process, not only refrained from offering any methodology for assessing the business interruption losses but also repeatedly rejected the calculations submitted by Ecoservice.

The document submitted to the court shows that the Latvian branch of Compensa is unreasonably delaying the decision on the insurance claim. Almost one and a half years after the accident, the insurance company has neither decided whether the accident should be declared insured nor whether to pay the full or partial indemnity.

After the fire, Ecoservice is rebuilding its capacity using its own and borrowed funds. It is estimated that the ongoing reconstruction of the sorting centre will require a total of EUR 18 million.

23.12.2024.