Riga, 2013-11-29 08:57 CET (GLOBE NEWSWIRE) -- Latvenergo Group is the largest electricity supplier in the Baltics with a 33% market share – over nine months of 2013 the Group has supplied 6,026 gigawatt hours (GWh) of electricity to retail customers (nine months of 2012: 6,147 GWh).
The amount of electricity supplied in neighbouring countries increased by 35%, while the total electricity supply volume decreased by 2%, mainly due to a decline in industrial electricity consumption in Latvia. Since the beginning of the year, the number of customers in Lithuania and Estonia has grown by more than 10 times, and, during nine months of this year, the amount of electricity supplied in these countries reached 1,609 GWh, comprising approximately 27% of the total electricity supply in the Baltics.
Overall, in nine months of 2013, electricity generation reached 3,775 GWh (+3%) while thermal energy generation – 1,806 GWh (+1%). The increase of electricity generation volume was ensured by increased generation (+26%) at Riga combined heat and power plants (+279 GWh) thus reducing the electricity price increase during the periods of cross-border transmission capacity limitations. Besides, the amount of electricity procured from local generators within the mandatory procurement has increased, reaching 913 GWh (+27%).
In nine months of 2013, Latvenergo Group revenue and EBITDA grew by 6%, reaching LVL 576.7 million (EUR 820.6 million) and LVL 142.6 million (EUR 203.0 million) respectively, while net profit – LVL 23.1 million (EUR 32.9 million). The financial results were positively impacted by an increase in mandatory procurement revenues, while the negative effect is due to an increase in the electricity purchase price for electricity supply to retail customers, lower generation at Daugava HPPs, a decrease in industrial electricity consumption in Latvia and losses from electricity supply at regulated tariff in Latvia. In nine months of 2013, the overall losses from electricity supply at regulated tariff are estimated at LVL 22.5 million (EUR 32.1 million).
The total amount of investments made over nine months of 2013 is LVL 112.9 million (EUR 160.7 million), 68% of which were invested in network assets, where the investment amount has been increased by 41% compared to 2012. In the third quarter of 2013, the second power unit of Riga TEC-2 was commissioned (installed electrical capacity – 420 MWel, thermal capacity – 270 MWth), replacing more than 30-year serviced power units and thereby increasing the security of electricity supply, improving electricity generation efficiency and meeting the environmental requirements.
We have diversified the borrowing sources by issuing bonds – the total amount of bonds issued exceeds 10% of total borrowings.
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Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. 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.
Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania) and Liepājas enerģija SIA (thermal energy generation and supply, electricity generation), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.