Vilnius, Lithuania, 2017-03-07 11:30 CET (GLOBE NEWSWIRE) -- On Tuesday, EPSO-G group, which controls the country’s energy transmission and exchange infrastructure, presented its five-year strategy, which outlines the key activities for a period until 2022. The strategy includes the Group’s financial targets and goals.
The strategy comprises four key directions of the activities of the Group – the sustainable growth and the long-term benefit for shareholders, the development of regional activity and the implementation of strategic projects efficient operations as well as the formation of a creative and progressive organisation.
The Group’s average return on equity in the next five years is expected to average 6.4%, with EBITDA to make up at least EUR 70 million at the end of the period. These targets were set taking into account the regulatory environment which provides for allocating an amount, that exceeds the set limit of return, to reduce the energy transmission price for consumers the next year and obligation to pay its liability for the ownership right of the electricity transmission system operator Litgrid, which is owned by the Group.
The strategy identifies EPSO-G group’s strategic projects, which will be given a special priority. The key objective in the electric energy area is to properly prepare for synchronisation with the networks of continental Europe. The preparatory works of this project are outlined in the five-year strategy.
To efficiently utilize the country’s well-developed gas infrastructure and take the advantage of the LNG terminal in cooperation with other Baltic countries, EPSO-G group is going to develop the regional gas market by the end of 2019 and expand the operations of the natural gas exchange GET Baltic. It is planned that the project of the Gas Interconnection Poland–Lithuania (GIPL) to be implemented with Polish partners will be completed by the end of 2021. Once the project is completed, the Baltic countries and, likely, Finland will become part of the EU single gas market.
The energy exchange operator BALTPOOL is responsible for ensuring the transparent and convenient trade in biofuel, so EPSO-G will seek that the expertise and its developed products were available for the countries of the region. The target set for BALTPOOL is to ensure that in three years its operating income generated outside the Lithuanian market following the expansion made up at least 10%.
The country’s major energy projects will be implemented with a focus on efficiency – not only an economic cost-benefit analysis of the implemented projects will be carried out but also risks factors will be estimated and efforts will be made to ensure the soundness and transparency of procurement.
The strategy also emphasizes the importance of the Group’s business culture. The goal is to create an efficient and competent organisation which operates in accordance with the principles of good governance.
Additional information
The state-owned group EPSO-G group was founded on 4 July 2012. The sole shareholder of the parent company is the Ministry of Energy of the Republic of Lithuania. EPSO-G group is comprised of seven companies: parent company, three daughter companies and three lower-tier daughter companies. EPSO-G has a 97.5% shareholding in the electricity transmission system operator Litgrid and a 96.6% shareholding in the natural gas transmission system operator AB Amber Grid. Following the acquisition of a 67% shareholding in BALTPOOL UAB from LITGRID in January 2016, EPSO-G became the direct operator of the energy exchange. EPSO-G also has a non-controlling shareholding interest in another four companies.
Vilija Railaitė Head of Communications mob. ph. +370 613 19977 e-mail vilija.railaite@litgrid.eu
