Elektrėnai, Lithuania, 2016-11-15 16:08 CET (GLOBE NEWSWIRE) -- Lietuvos Energijos Gamyba, AB (legal entity code 302648707, registered at Elektrinės g. 21, Elektrėnai, hereinafter – the Company) announces its preliminary unaudited financial indicators for the period of January–September 2016:
- According to preliminary unaudited data, in January–September 2016 the Company’s sales revenue was EUR 100.88 million, which is 40.0% smaller than in January–September 2015 (EUR 168.06 million).
- Preliminary unaudited profit before interest, tax, depreciation and amortisation (EBITDA) of the Company for January–September 2016 was EUR 31.60 million (the one-off effect of sale of a part of business activities is not evaluated), which is 19.4% less than for the period of January–September 2015 (EUR 39.19 million). According to preliminary data, EBITDA margin for the period of January–September 2016 is 31%, which is 8.2 p. p. higher than for the period of January–September 2015.
- Preliminary unaudited net profit of the Company earned in January–September 2016 was EUR 22.01 million, which is 16.8% less than for the period of January–September 2015. Net profit in January–September 2015 was EUR 26.46 million.
Electrical energy production capacity operated by the Company in Elektrėnai this year operates without the quotas of the electrical energy production. Under these circumstances, in January-September 2016 in Elektrėnai there was produced three times less electrical energy than in January-September 2015 (respectively 0.308 TWh and 0.953 TWh), the Company received less regulated operating income, but the combined cycle unit played a crucial role in the whole system – it was activated when the market price of electricity was the highest, the Unite was able to contribute to ensuring the stability of the electricity prices. Therefore, in contrast to 2015, when the Unit was operating almost continuously from the middle of April until October, in 2016 this facility was often turned on in the morning and turned off in the evening. During January-September 2016, the Unit was turned on even 45 times (in 2015, throughout the year - only 14 times). Despite such frequent turning on, the Unit operated reliably, and during January-September 2016, the Company was able to quite significantly reduce the electrical energy production costs.
Kruonis Pumped Storage Hydroelectric Plant produced 0.411 TWh of electrical energy in January-September 2016 – this is 15.5 percent less than in January-September 2015, when this power plant produced 0.487 TWh of electrical energy, but it operated more profitable. At that time, Kaunas Algirdas Brazauskas' Hydroelectric Power Plant produced one-fifth (21.6 percent) more electrical energy in January-September 2016 than in January-September 2015 (respectively 0.257 TWh and 0.212 TWh) due to the higher freshwater discharge by Nemunas than last year.
In total 0.977 TWh of the electrical energy was produced by the power plants operated by the Company during January-September 2016. In January-September 2015, in all power plants of the Company the total electrical energy amounted to 1.652 TWh.
In January-September 2016, the Company was able to significantly reduce operating costs: optimizing operations and eliminating the old inefficient equipment reduce repair and maintenance costs. Also in January-September 2016, the relatively bigger part of dismantling work on the old electrical energy production equipment was carried out by the Company’s employees who were specifically brought together into the clearing-up work group. In 2015, the contractors were often invoked for this purpose.
The Company's preliminary profit variables show a significant influence which still is made by the decisions of the National Commission for Energy Control and Prices (NCC). On 17 October 2016, the Supreme Administrative Court of Lithuania, by the order not subject to appeal, overturned the NCC‘s decision by which the Company was recognised as having a significant impact on the Company in the electrical energy production market, but the court decision has not yet started. In the results of January-September 2016 the influence of the NCC decision is still significantly reflected. By this decision, Kruonis PSHP and Kaunas HPP commercial activity profit share (according to preliminary estimates in January-September 2016 it was EUR 10.2 million) was directed to covering the Company's fixed costs incurred by carrying out the regulated activities in providing the services that meet the public interests. In total, excluding the verification of the impact of this and other decision made by the NCC regarding the Company‘s activity in 2010-2012, the Company's EBITDA in January-September 2016, according to the preliminary estimates, would be EUR 13.0 million higher (the influence of these factors in January-September 2015 amounted to EUR 10.7 million).
The factor that had a favorable impact on the Company‘s net result in January-September 2016 – the sale of the part of the wholesale electricity trading business, for which, if all the conditions provided in the contract are implemented, the Company may receive EUR 21.1 million until 2019. In addition, as a result of a significant decrease in the market price of greenhouse gas emission allowances during January–September 2016, the Company recognised the loss amounting EUR 6.8 million incurred due to the change in the value of emission allowances and the right to receive emission allowances as accounted for.
The Company’s interim consolidated financial statements and interim report for January–September 2016 will be published on 30 November 2016.
Valentas Neviera, Head of Corporate Communication Division of Lietuvos Energijos Gamyba, AB, phone +370 670 25997, email: valentas.neviera@le.lt
