Referring to the information on Latvenergo financial data published by Dienas Business on 17 July, Latvenergo AS would like to point out that according to the audited annual report 2012, the borrowings of the Latvenergo Group was LVL 595,2 million, the equity was LVL 1 410,5 million and total assets were LVL 2 472,3 million. Thus the equity of the Latvenergo Groups significantly exceeds its borrowings, ensuring the capital ratio at the level of 57%, and the debt to equity ratio - 0.4, which is in line with the industry averages and indicates to the adequate level of the borrowings and the stable capital structure.
According to the International Financial Reporting Standards (IFRS), the assets on the balance sheet should are recognised at the fair value, thus the regular revaluations of the assets should be done. To ensure that the carrying amount of the assets does not differ materially from that which would be determined using fair value, Latvenergo Group revaluates the assets with sufficient regularity, but not less frequently than once every 5 years. Valuations have been done by independent certified valuators.
According to annual audited financial results of 2012, the turnover of the Latvenergo Group was LVL 751.0 million, EBITDA – LVL 171.8 million, the annual profit – LVL 35.7 million, In 2012, the turnover of Latvenergo Group exceeded EUR 1 billion and increased by 10% compared to the turnover in 2011.
The international credit rating agency Moody's Investors Service in the beginning of year left unchanged Latvenergo AS Baa3, stable credit rating. This approves the ability of Latvenergo Group to maintain secure credit risk position. Moody’s also highlights the moderate level of debt in the Group’s balance sheet.
Additional information: J?nis Irbe Group Treasurer Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv
www.latvenergo.lv/investors/eng
About Latvenergo:
The Latvenergo Group is the largest power supply merchant in the Baltics, engaging in electricity generation and trade as well as providing electricity distribution and management of transmission system assets. Latvenergo holds one-third of the entire Baltic electricity market. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa3/stable.
The Latvenergo Group includes the parent company Latvenergo AS (electricity generation and trade, thermal energy generation) and its subsidiaries Latvijas elektriskie t?kli AS (management of transmission system assets), Sadales t?kls AS (electricity distribution), Elektrum Eesti OÜ (electricity trade in Estonia), Elektrum Lietuva UAB (electricity trade in Lithuania) and Liep?jas ener?ija SIA (thermal energy generation and trade, electricity generation), as well as Elektrum Latvija SIA, a subsidiary of Elektrum Eesti OÜ.
* EBITDA is calculated as earnings before the interest, income tax, depreciation and amortisation.
