State-owned companies posted combined profit of 184 million euros last year

TALLINN - The Ministry of Finance has submitted to the government an overview of the management of state holdings in companies, foundations, and non-profit organizations for 2024.

The profitability of state-owned companies recovered after a previous year of decline, while several companies ceased operations or are changing their activities, and some state holdings are being prepared for divestment, the Ministry of Finance announced.

As of the end of 2024, the state held shares in 26 companies, 21 of which were fully state-owned and four in which the state held a majority stake. During the year, three companies ceased active operations: Nordic Aviation Group (Nordica), which was declared bankrupt in early 2025; Transpordi Varahaldus, which is liquidating its operational assets; and Operail, which sold its entire business operations and has since been renamed AS Raudtee Varad.

The total turnover of state-owned companies decreased by 4.5 percent in 2024, mainly due to a drop in energy market prices. At the same time, the consolidated net profit turned positive again, reaching 184 million euros, compared to a loss of 339 million euros in 2023. Eighteen companies turned a profit, two more than in the previous year.

Based on the consolidated report, the government will also discuss further steps to streamline state holdings. Drawing on assessments by holding administrators about their respective companies, the Minister of Finance will submit proposals to the government, outlining potential divestment opportunities and timelines in the 2024 holdings review.

According to the proposals, the state's share in AS Tallinna Sadam (Port of Tallinn) will be reduced to 51 percent; the 2021 decision to privatize AS Teede Tehnokeskus will be implemented; a reduction of the stake in AS Eesti Post will be analyzed after the Postal Act is updated and its service funding model is changed; and the state's holding in AS Eesti Põllumajandusloomade Jõudluskontroll will be reviewed, including an assessment of the divestment method, as the holding administrator deems it no longer necessary to retain the stake.

"The state does not need to be an owner where the private sector can provide services just as well or better. In the case of Port of Tallinn, Teede Tehnokeskus, and Eesti Post, the next step is to find a balance between public interest and market functionality," said Kaur Kajak, Deputy Secretary General for Governance Policy at the Ministry of Finance.

Meanwhile, the consolidated report shows that the state's role remains central in areas such as medicine, business support, and culture. At the end of 2024, the state was involved in 64 foundations, two more than in 2023. The total assets of these foundations grew by 4.1 percent to 2.05 billion euros. Their own revenues increased by 12 percent, indicating growing independence from state subsidies. However, the net result decreased by 23 percent as the growth in fixed costs outpaced revenue growth.

The state is also a member of 15 non-profit organizations, including nine regional public transport centers. The Ministry of Finance deems it necessary for all ministries to review their memberships to ensure they remain relevant and to avoid overlapping roles.