Business Lines

Alexela continues to purchase liquid fuels from European suppliers.

Domestic consumption remained at the previous year's level. The 2.7 per cent growth in the retail market was driven by an increase in refuelling by transit customers, which was caused by a sharp rise in excise duty in Lithuania. The wholesale market, however, remained at the same level.

The rise in excise duties on diesel and petrol had an impact on fuel prices.

The minimal market growth intensified competition in the local market, which was reflected in the fierce price competition that started in the autumn, altering market dynamics and resulting in regional price differences and constant weekly price fluctuations. Market participants reviewed their existing customer offers and updated their loyalty programmes. Alexela focused on providing its customers with complete energy solutions, combining fuel and electricity offers.

For private customers, 2025 was a landmark year, as Alexela launched four new electricity packages to meet the needs of consumers: Flexible Fix, Choose Yourself, Virtual Battery and the Fixed Plan. Similar to 2024, customers continued to prefer fixed-price solutions over electricity at market rates. The alexela.ee website has also been updated, and customers can now easily find the right electricity package for them by answering just three questions.

As an energy company with a broad product portfolio, Alexela offers a range of permanent discounts and limited-time offers, providing added value to customers who use several services at once. The loyalty programme, under which Alexela offers a discount of -3c/l on all fuels exclusively to electricity and natural gas customers, was updated in autumn.

Alexela has entered into a number of long-term electricity purchase agreements with renewable energy producers in order to bring renewable electricity to the market, which it can then offer to customers at fixed prices.

The increase in the number of electric vehicles will lead to an increased demand for filling stations offering additional services. The business processes in our café-shops are constantly developing to meet our customers' needs and achieve our financial objectives.

We continuously invest in product development and service skills to increase the number of new customers and make them loyal. The fast food category continued to grow in 2025 and in 2026, we will introduce new products to the menu to ensure that the growth trend continues.

Environmental protection is an important priority for us. We'll continue to promote reusable coffee cups, whose share in the hot drinks category grew to 18%, a 4% increase compared to 2024. The hot drinks category is very important and we're constantly working to improve the quality of coffee.

My Alexela loyalty programme

The My Alexela loyalty programme offers loyal customers convenience, discounts and new opportunities, combining everyday energy products (electricity, natural gas and vehicle fuels) with the product range of our café-shops to create a comprehensive customer experience. Customers can enjoy a range of benefits and personalised offers across all products and services.

In 2025, we took a significant step towards personalising the customer experience by adding digital special offers – or vouchers – to the Minu Alexela app. The new solution allows us to offer customers more tailored and personalised offers than before, taking into account their consumption habits and preferences. This creates an opportunity to move away from universal campaigns towards data-driven, targeted offers, and to increase the value exchange between the customer and Alexela.

The updated terms and conditions of the loyalty programme entered into force in October 2025. The objective of the changes was to ensure that pricing remained clear and transparent for customers and to respond to rapid price fluctuations in the fuel market. We have brought retail fuel prices down to a more competitive level directly at the filling station, as a result of which the general fixed discount no longer applies to all customers – the lower price is now factored into the retail price.

At the same time, we continue valuing the customers who use several services. Private customers with an Alexela electricity and/or natural gas contract get a permanent fuel discount of -3 c/l. In addition, we offer private customers who have joined our loyalty programme a birthday discount of 5 c/l on their birthday and on the five days immediately before and after it. As part of the loyalty programme, it is also possible to share benefits with one's family, thereby strengthening family- and relationship-based customer relationships.

The My Alexela programme continues to evolve, focusing on personalisation, competitive pricing and strengthening long-term customer relationships to increase both customer satisfaction and loyalty.

Investments in technology were realised through a number of major projects. We developed innovative electricity products (virtual power plant, fixed plan, flexible fix), implemented a new energy portfolio risk management solution (ETRM) and rolled out a new automatic ordering system in our shops. We continued to develop e-mobility and to further develop digital solutions for cylinder gas.

As an important step towards enhancing the customer experience and our marketing capabilities, we selected a new CRM and marketing automation platform for Alexela and began implementing it. This lays the foundation for more targeted and timely customer communication, more consistent customer journey management, and more data-driven sales and service processes.

Training courses on artificial intelligence (AI) also played a significant role. Over the course of the year, the use of AI became commonplace across all business sectors, primarily for automating routine tasks and speeding up work. We also prepared the 'Alexela Guide to Generative AI', which helps people use AI safely and responsibly. AI tools are increasingly being used in almost all of Alexela's IT solutions.

In the context of Smart Electricity, we continued to develop the functionalities of the virtual power plant designed for business customers and established the capability to participate in the newly opened frequency markets.

In addition, we launched preparations to apply for ISO 27001 certification and continued with the programme to upgrade Alexela's IT systems to take our technological capabilities to a new level. This paves the way for the provision of more flexible services and the development of more efficient internal work processes. Digitalisation provides a solid foundation for further innovation and helps to keep Alexela competitive in the rapidly evolving energy sector.

We will continue to develop our technology in order to remain at the forefront of innovation, create long-term value, save time and work with our customers to shape a more sustainable future.

In light of the changes to Alexela's liquefied natural gas supply chain, the biggest challenge in 2025 was ensuring the smooth organisation of liquefied natural gas supplies from the terminal in Latvia. During the financial year, a total of 14,642 tons of liquefied gas were supplied from the terminal, ensuring a consistent and high-quality service for Alexela's customers.

Hydrogen transport was added as a new service in 2025. Alexela Motors carries out container transport to the Alexela hydrogen refuelling station on Peterburi Road, thereby supporting the company's development of alternative fuels and their availability on the market.

In 2025, the company's lorries covered a total of 2.69 million kilometres, which is 340,000 kilometres more than in 2024 and 640,000 kilometres more than in 2023.

As at the end of the reporting year, there were 16 road tractors, 8 lorries and 2 vans in the company's fleet for carrying out transport operations.

As at the end of 2025, Alexela Motors employed 48 people, the majority of whom were lorry drivers. The professionalism, experience and dedication of our employees form the basis for the company's provision of high-quality and reliable services. In late 2025, AS Alexela decided to merge Alexela Motors with its parent company.

The main focus in 2025 was on increasing LNG volumes, which was supported by new bunkering contracts.

In 2024, a bio-LNG offer was launched, which makes it possible to withdraw the output of biomethane producers connected to the gas network as bio-LNG, helps valorise biomethane as bio-LNG and gives industrial companies and the transport sector the option to make progress towards meeting their sustainability targets, supporting the transition towards more environmentally friendly energy production options.

In 2025, the first contracts were signed with clients in the transport and maritime sectors for the supply of bio-LNG.

The Hamina LNG terminal operates on the principle of third party open-access, with its operations and tariffs being supervised by the Finnish Energy Authority.

2025 was the third year of operation for Hamina LNG. During 2025, the terminal received LNG from 11 vessels, with all supplies originating from outside Russia. A total of 600 GWh of LNG passed through the terminal. A total of 238 GWh of regasified gas was fed from the terminal into the Finnish transmission network and the distribution network in the Hamina region, whilst LNG was loaded in the tank trailers of 1,463 lorries and then delivered to customers in Estonia and Finland as a cleaner fuel alternative.

In 2025, the projects launched the previous year in cooperation with Rohe Solutions OY gained momentum. A total of 109 GWh of bio-LNG storage and handling capacity, which makes it possible to take the output of biogas stations connected to the gas network from the terminal as bio-LNG, was used during the year. A total of 19 vessels were bunkered, with the majority of these bunkering operations carried out with bio-LNG.

AS Alexela is the largest customer and user of Hamina LNG.

In 2025, the company presented to the public a socio-economic analysis prepared by the international audit firm KPMG. According to the analysis, the project is expected to enable consumers to save an estimated €131 million a year on electricity costs, increase tax revenue by approximately €80 million, and add an average of €253 million in value added to the economy each year.

In 2025, the focus was on developing a model for cooperation with the state. The activities included technical preparations, the development of partnerships and the design of a funding structure. The goal is to establish a clear framework for balancing the risks associated with long-term investments and to increase investment confidence.

The pumped hydro storage facility project Zero Terrain in Paldiski is a Project of Common Interest (PCI) of the European Union. As a strategic infrastructure project, the preparatory work has been supported by the European Union's Connecting Europe Facility.