Riga, 2014-02-21 15:32 CET (GLOBE NEWSWIRE) -- Latvenergo Group is the largest electricity supplier in the Baltics, supplying 7,954 gigawatt hours (GWh) of electricity to retail customers in 2013. A decrease of 4% compared to the previous year was determined by lower electricity consumption in the industrial sector in Latvia. In 2013, as a result of focused electricity trade activities, electricity supply volume in Lithuania and Estonia increased by 32% and exceeds 1/4 of retail electricity supply, while the number of customers in neighbouring countries exceeds 20 thousands.
In 2013, 4,854 GWh of electricity (2012: 5 077 GWh) and 2,566 GWh of thermal energy (2012: 2 712 GWh) were generated by the power plants of Latvenergo Group. Compared to 2012, the electricity output at Riga combined heat and power plants increased by 548 GWh, while lower water inflow in the Daugava River resulted in a decrease of the Daugava HPPs output by 775 GWh. The electricity output at Riga combined heat and power plants allowed reducing the electricity market price during the periods of cross-border capacity limitations. The volume of electricity procured from other generators under the mandatory procurement reached 1,286 GWh (+22%). Along with the increase in the amount of mandatory procurement from other generators, the proportion of Latvenergo AS in the eligible costs of mandatory procurement decreased from 42% in 2012 to 38% in 2013.
The revenue of Latvenergo Group grew by 3%, reaching EUR 1.1 billion in 2013, while EBITDA increased by 2%, reaching EUR 248.9 million. The net profit of the Group was EUR 42.3 million. The results of the Group were positively impacted by increase of mandatory procurement revenues due to a change of the mandatory procurement public service obligation fee and by recognition of mandatory procurement revenues, while factors such as losses due to electricity supply at regulated tariff in Latvia, lower water inflow in the Daugava River, increase of electricity purchase costs and decline of electricity consumption in the industrial sector in Latvia had a negative impact.
In 2013, the total amount of investments was EUR 225.5 million. In autumn 2013, the second power unit of Riga TEC-2 (installed electrical capacity: 420 MWel, thermal capacity: 270 MWth) was commissioned, thereby completing the reconstruction project of Riga TEC-2, the most efficient and up-to-date combined cycle power plant in the Baltics. With the aim of improving the quality and technical parameters of network services, investments in network assets were significantly increased, totaling nearly EUR 160 million, which represents 70% of the total investments. In 2013, investments in the transmission network project Kurzeme Ring amounted to EUR 50.9 million.
We have diversified our borrowing sources by issuing bonds – the total amount of bonds issued reaches EUR 105 million. In 2013, we have issued bonds in the amount of EUR 50 million with 5-year maturity and of EUR 35 million with 7-year maturity.
The 2013 annual audited results of Latvenergo Group and the Corporate Governance Report 2013 will be published on April 16, 2014; the interim reports of 2014 will be released on May 30, August 29 and November 28.
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv
About Latvenergo
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.
