Vilnius, Lithuania, 2015-02-27 15:12 CET (GLOBE NEWSWIRE) -- Compared to 2013, sales revenues of the natural gas distribution activity continued by the Lithuanian natural gas distribution system operator AB Lietuvos Dujos increased by 16 percent during 12 months of 2014 and amounted to LTL 188.2 million (EUR 54.5 million) (in 2013: LTL 161.9 million (EUR 46.9 million)). The increase in revenue was determined by increased distribution service prices set upon the start of the new 2014-2018 regulatory period.
Expenses of the Company’s, which is operated by the state owned energy company group Lietuvos Energija, continued gas distribution activity decreased by 53 percent, or LTL 193.6 million (EUR 56.1 million), compared to 2013 and accounted for LTL 172.1 million (EUR 49.8 million). After the elimination of the impairment expenses of non-current assets, expenses totalled LTL 150.4 million (EUR 43.6 million) in 2014 and were 10 percent lower than expenses in 2013 (LTL 166.4 million (EUR 48.2 million)). Due to the impairment of non-current assets accounted for as at 31 December 2013 in retrospect, depreciation expenses decreased by 30 percent in 2014. Cost of natural gas also decreased significantly due to a lower natural gas import price.
Earnings before interest, taxes, depreciation and amortization (EBITDA) of the continued gas distribution activity increased by LTL 32 million (EUR 9.3 million), or 84 percent, in 2014 and amounted to LTL 70.1 million (EUR 20.3 million) compared to LTL 38.1 million (EUR 11 million) in 2013 (EBITDA calculations do not evaluate the impairment of non-current assets). This change was caused by better distribution activity results determined by decreased expenses and increased revenue.
In 2014, net profit of the Company totalled LTL 146.2 million (EUR 42.3 million) (in 2013, the Company incurred net loss of LTL 106.2 million (EUR 30.8 million), including net profit of the continued activity accounting for LTL 20.3 million (EUR 5.9 million) (compared to net loss of LTL 166.9 (EUR 48.3) in the same period last year)). Net loss of the continued activity incurred in 2013 was determined by the above-specified impairment of non-current tangible assets. Having eliminated the impact of the impairment of non-current assets, net profit of the continued gas distribution activity in 2013 and 2014 would amount to LTL 2.6 million (EUR 0.8 million) and LTL 38.7 million (EUR 11.2 million), respectively.
Net profit of the discontinued gas supply activity conducted for 10 months of 2014, including the result of the sale of gas supply activity, totalled LTL 126 million (EUR 36.5 million) (last year, net profit of the discontinued gas supply activity was LTL 50.7 million (EUR 14.7 million), and net profit of gas transmission activity totalled LTL 10 million (EUR 2.9 million)).
Upon the change of the accounting policy in accordance with the policy applied in Lietuvos Energija, UAB Group on 31 December 2014, a part of the Company’s non-current tangible assets was accounted for in application of the revaluation method. A part of asset revaluation results was reflected under other comprehensive income, which totalled LTL 17 million (EUR 4.9 million) in 2014.
“Upon the change of gas business environment occurred in recent time in Lithuania, Lietuvos Dujos, having cleared up its activities as the gas distribution system operator, took a natural step into the reorganization stage of the company. The aim of the changes in the company is to create and establish a long-term partnership with customers, create an appealing service package, enhance customer confidence in natural gas, which has once again become a competitive fuel due to its decreasing price”, - said Liudas Liutkevičius, Chairman of the Board and CEO of AB Lietuvos Dujos.
Having unbundled the natural gas supply and distribution activities at the end of 2014, household customers and a major part of non-household customers have been paying for gas to gas supply companies, which in turn have paid the distribution system operator Lietuvos Dujos for the provided gas distribution service. Major non-household customers - gas system users continue paying for the gas distribution service to Lietuvos Dujos.
In 2014, AB Lietuvos Dujos transported via its distribution system 747.8 MCM of natural gas, which is 12.7 percent less than in 2013. AB Lietuvos Dujos operates 8.5 thousand km of distribution gas pipelines supplying gas to more than 560 thousand customers. Gas distribution volumes decreased last year due to a warm winter season and the development of biofuel used for the production of district heat. “Since the volume of the distributed natural gas has decreased over the past few years, distribution system maintenance costs have been distributed over a lower volume of distributed gas, which led to significantly increasing gas distribution tariff. In order to be able to increase the consumption of natural gas at the lowest possible cost, we will seek to exploit the already developed infrastructure and give due attention to the customers, whose connection to the existing infrastructure would be simple and cost-effective”, - said Liudas Liutkevičius.
In 2014, investments of the continued gas distribution activity of the Company amounted to LTL 40.1 million (EUR 11.6 million), which is 18 percent less than in 2013. Lower investments into the reconstruction of the gas network and modernization were made last year, however, investments related to the construction of new gas systems connecting new customers increased significantly, i.e. by 31 percent. In 2014, 49 percent of funds were invested into the construction objects of new gas systems, 50 percent was allocated for investments into the reconstruction of gas systems, modernization and reliability projects, while the remaining part comprised investments into financial assets.
“We are moving forward step by step - during 2014, we connected to the gas distribution system 15 percent more new gas customers, however, this is just a start. This year we have set specific goals related to the attraction of new customers and densification of our network. The more gas is consumed, the less infrastructure maintenance will cost for customers”, - said Liudas Liutkevičius. Gas prices is calculated to have decreased by one-third to household customers over the period of two years, while a fee for connecting to the distribution system decreased by half in the past four years.
The shares of Lietuvos Dujos are quoted on the Main List of the stock exchange NASDAQ OMX Vilnius. Lietuvos Energija, UAB owns 96.6% of shares of the company and minority shareholders have acquired the remaining part of shares (3.4%) thereof.
Laura Šebekienė Head of Communications Ph. +370 633 99940 Email: l.sebekiene@lietuvosdujos.lt
