AB Klaipedos nafta Annual information for the year

2AB Klaipėdos nafta, legal code 110648893, registered at Burių str. 19, Klaipėda (hereinafter, the “Company”), Annual General Meeting of Shareholders held on 21 April 2017 in between the other questions approved the audited financial statements for the year ended 31 December 2016.

• AB Klaipėdos nafta revenues for the year 2016 comprise EUR 103,839 thousand, 5.3% less compared to the year 2015 (EUR 109,702 thousand);
• Net profit of the Company comprise EUR 13,794 thousand, 37.4% less compared to year 2015 (EUR 22,036 thousand), net profit margin – 13.3 per cent (in 2015 – 20.1 per cent).
• Company’s EBITDA for the year 2016 comprise EUR 28,446 thousand, 23.4% less compared to the same period of the year 2015 (EUR 37,136 thousand), EBITDA margin – 27.4 per cent (in 2015 – 33.9 per cent).

Management comment:

The previous year definitely could be named as year of growth. Activities volumes in 2016 significantly increased: oil and LNG terminals’ activity volumes were record high. Total in Klaipėda port 8.2 million tons of cargos were handled through the KN operating terminals that is approximately 20% of total handling turnover of the port of Klaipėda.

Total during 2016 the Company reloaded 7.3 million tons of petroleum products in the oil terminals of Klaipėda and Subačius that is more by 13.6% comparing to 2015 when 6.5 million tons were reloaded. Significantly increased petroleum product cargo identified that KN terminal provides transhipment services professionally and effectively. The main reason for volume increase is related with the transhipment results of AB ORLEN Lietuva, which are the best since 2005. In previous year transit cargos from Byelorussian refineries also increased despite the slowdown in the second half of the year.

LNG terminal regasification volume in 2016 was 14.6 million MWh or by 3.2 times more comparing to the same period of 2015 when 4.6 million MWh have been regasified. That is the largest activity volume throughout the history of FSRU INDEPENDENCE. We may state that LNG terminal results of 2016 represent in full the market needs and ensure the benefits of the LNG terminal as energy source. It should be noted that in previous year during certain periods almost 100% of total gas usage In Lithuania were imported through LNG terminal.

Next to the successful activities of oil products and LNG handling we have been implementing several investment projects foreseen in the Strategy of the Company for the years 2016 - 2020. These projects will ensure the optimal operations of our managed infrastructure, effectiveness of activities and development.

AB Klaipėdos nafta financial results for the year 2016 prove intensive and effective performance of KN. Despite the increased volumes of activity and implementation of the projects, the Company professionally managed its costs and ensured high return for the shareholders. For the analysed period the return on equity was 7.1%, EBITDA margin – 27.4%.

KN Oil terminal revenues in 2016 comprise Eur 34.1 million that comparing to 2015 (Eur 37.3 million) decreased by 8.5%. Change of situation in the oil products transhipment market has modified the pricing of the services and structure of the service contracts that caused decrease in revenues.

Sales revenues of the KN LNG Terminal in 2016 comprise Eur 67.0 million when for the same period in 2015 – Eur 69.9 million. Decrease in revenues is related with the lower natural gas consumption capacities. It must be taken into account that LNG terminal profit level is set by the legal regulation as to the laws of the Republic of Lithuania so it is going to be compensated through the other periods.

Enclosed:

1. Approved Financial Statements of AB Klaipėdos nafta for the year 2016, prepared according to the International Financial Reporting Standards approved for application within the European Union, provided together with the Independent Auditor’s Report hereto, as well as the Annual Report of AB Klaipėdos nafta;

      2.  Financial results presentation for the financial year ending on 31 December 2016.

         Marius Pulkauninkas, Director of Finance and Administration Department, tel. 8 46 391763