Litgrid results for the first half of 2018 were affected by growing energy prices and changes in balancing energy market
As the economy of Lithuania experiences growth, the consumption of electricity is in the record high since 1992. In the first half of 2018, Litgrid volumes of electricity transmission via high-voltage networks for national needs amounted to 5 153 million kilowatt-hours (kWh), which is 4.3 % more than in the same period of 2017. The volumes of transmission to customers of the electricity distribution operator amounted to 4 695 million kWh (+5% compared to the same period of 2017), and to other customers 458 million kWh (less -2.3 % compared to the same period of 2017).
The average price of Nord Pool Spot Lithuanian zone for the first half year of 2018 was 27% higher (43,69 vs 34,47 EUR/MWh) comparing to the same period in 2017 (biggest impact was made by unfavourable meteorological conditions, extremely high prices for CO2 emission, increased oil price, decreased wind generation).
Costs and expenses
Revenue earned by the Litgrid group in the first 6 months of 2018 amounted EUR 91.1 million, a 17% increase compared to the same period of 2017. Biggest impact on increased revenue was made by increased revenue from system services.
Revenue from electricity transmission decreased by 2.7 % (down to EUR 33 million) compared to the same period in 2017. Revenue from electricity transmission accounted for 36 % of the Group’s total revenue. The decrease in revenue has resulted from a 6.8 % lower price cap for the transmission services, but the loss of revenue was compensated by increased demand of electricity.
The Group’s operating expenses totalled EUR 87 million in the first half of 2018, which is 23 % more comparing to the same period of 2017. These costs increased due to the increase of system service costs, balancing (regulating) electricity costs and costs of compensating technological losses (due to the increased energy prices) in the transmission grid.
Profit
The EBITDA for the first half year of 2018 amounted to EUR 17.3 million. Compared to the same period of 2017, the EBITDA decreased by EUR 3.1 million, or 15%; the EBITDA margin decreased to 19 % (2017 H1: 26.1%).The Group’s net profit for the first half of 2018 was EUR 3.2 million (2017, first half: EUR 5.2 million). The change in profit compared to the last year same period was influenced by higher costs for compensating technological losses (due to higher electricity prices) and due to the new pricing methodology decreased profit of balancing segment (starting from 1st January 2018 the new Baltic balancing market started to operate and since then the balancing income of Litgrid is equal to the balancing costs). Due to that change, the price for wholesale market participants has decreased.
Investment
In the first half of 2018 investments of Litgrid amounted to EUR 9.1 million, of which 38 % were earmarked for the implementation of strategic electric energy projects of high economic importance to the State, and 62% for the reconstruction and development of the electricity transmission grid.
Reliability of links
In the first half of 2018 the asynchronous connections operated reliably. Litpol Link was available to the market 96% (100% in the same period in 2017), and NordBalt was available to the market 96%, too (87% in the first half of 2017).
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