Due to preliminary unaudited operating results of LESTO AB company group for three months of 2014

| Source: LESTO

During the three months of this year LESTO group‘s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) amounted to 139.7 million LTL – that is the increase of 12.4 % compared with the same period of last year. EBITDA margin increased by 3.64 per cent points and amounted to 22.85 %.

LESTO group‘s revenue of January-March of 2014 amounted to 611.4 million LTL and, compared with the same period of 2013, declined by 5.5 %. Revenues shrank due to the decrease of electricity prices to consumers. The main source of revenue is income from network service that made up 68 % of all Company‘s income.

The consolidated LESTO group‘s net profit of the first quarter of 2014 amounted to 40.2 million LTL – this is almost three times more than in January-March of 2013 when it was equal to 14.4 million LTL. The significant improvement was determined by 13.5 % decrease in purchase costs of electricity and more efficient activities. Electricity purchase costs declined because some share of electricity was purchased in market seeking for the best purchase price.

„The results of the first quarter show that LESTO has chosen the right direction. The consistent increase of efficiency and decrease of electricity purchase costs succeeded to achieve such optimistic results. The recovery of national economy will also affect the results of LESTO – we hope that the volume of distribution and network services will increase this year“, states Aidas Ignatavičius, CEO of LESTO AB.

The volume of network service during the reported period decreased by 0.2 % and amounted to 2.2 billion kWh. During the first quarter of the year 31 % of electricity network service volume was allocated to residents. Industrial and service institutions consumed 27 % and 12 % respectively, other objects – 30 %.

During the first quarter LESTO has connected 3,951 objects of new customers, 23.7 % more than in the same period of 2013. The allowable power for new customers was equal to 55,420 kW.

In the three months of 2014, LESTO investments in electricity network expansion and modernization reached 41.5 million LTL – this is 9.1 % more compared to the same period of 2013 when the investment made up 38.1 million LTL.

„LESTO pays a lot of attention to the expansion and modernization of the electricity network. It is useful for both economic and social terms, in addition, this directly affects the reliability and quality of electricity supply, promotes rational use of electricity, as well as contributes to the company‘s desire to improve the environment“, says A. Ignatavičius.

In January-March of 2014, with the influence of natural disasters (“force majeure”) the system average interruption duration index (SAIDI) per customer amounted to 51.07 minutes, while during the same period last year it was equal to 15.11 minutes. This index has increased due to unfavorable weather conditions in spring - 78.6 percent electricity distribution system consists of overhead power lines, so the electricity supply is still very dependent on the weather. In order to reduce the vulnerability of the distribution system, greater investment is needed changing overhead to underground power lines. Natural phenomena omitted, SAIDI index did not change significantly during the first quarter of 2014 and amounted to 15.77 min. (2013. IQ. – 12.12 min.).

During the reported period of 2014 the system average interruption frequency index (SAIFI) per customer reached 0.33, while last year it was equal to 0.19 times.

LESTO company group consists of subsidiaries ELEKTROS TINKLO PASLAUGOS UAB, NT Valdos UAB and associated company Technologijų ir inovacijų centras UAB.

LESTO is one of the biggest companies by market capitalization in OMX Baltic securities exchange market. 
LESTO is part of “Lietuvos energija”, UAB, group.

         Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516.