Riga, 2014-05-30 13:14 CEST (GLOBE NEWSWIRE) -- Most of the retail electricity supply volume – 82% – was supplied on the open electricity market, while 18% – at a regulated electricity tariff in Latvia. Latvenergo Group electricity supply volume in Latvia was 1,558 GWh, in Lithuania – 559 GWh and in Estonia – 372 GWh. The total electricity supply volume in Lithuania and Estonia reached 931 GWh, exceeding the amount supplied by the competing electricity suppliers in Latvia by 556 GWh.

Uldis Bariss, Latvenergo AS Chief Commercial Officer: “Although the total electricity consumption in the Baltics has decreased, we are pleased that the volume of electricity supplied in the first three months of this year has significantly increased – compared to Q1 2013, the increase is 116 GWh in Estonia and 215 GWh in Lithuania. Accordingly the market share of Latvenergo AS subsidiary Elektrum Eesti OÜ in Estonia has increased to 17%, while the market share of Elektrum Lietuva UAB in Lithuania has increased to 22%. Competition is intensifying, and the open market is successfully functioning in all three Baltic countries, as proven by the results. Also, the market characteristics are becoming more intense, as the opportunity to select a suitable service is being used by both business clients and, increasingly, households in Estonia, where the electricity market for the segment has been opened already last year. Along with the active trade activities in Estonia also in the household sector, and while preparing for the opening of the household market in Latvia, we have seen that the opening of the market is a significant driving force for future development, in which the customers with their demands are one of the key players.”

In Q1 2014, the total amount of electricity generated by the power plants of Latvenergo Group was 1,192 GWh. Compared to Q1 2013, generation at Daugava HPPs increased by 10% or 63 GWh, while generation at Riga combined heat and power plants (Riga CHPPs) decreased by 35% or 258 GWh. The decrease was due to both unfavourable electricity market conditions (relatively low electricity price on the exchange and relatively high natural gas price) and warmer weather conditions that imply lower thermal energy demand. In Q1 2014, the total amount of thermal energy generated by Latvenergo Group was 1,094 GWh, which is 12% lower than in the respective period last year.

Māris Kuņickis, Latvenergo AS Chief Operating Officer: “When working in intense market conditions, the operational flexibility of each power plant is very important to any generator; it allows maintaining generation efficiency in changing market conditions, and our Riga CHPPs and Daugava HPPs provide us with that opportunity. Some of the existing hydropower units of the Daugava HPPs cascade are approaching the end of their lifespan, and it is important to plan investments in order to replace the aging units in a timely manner and fully use the hydropower potential of the Daugava HPPs.”

In Q1 2014, Latvenergo Group revenue has increased by 4% reaching EUR 324.5 million. The net profit of the Group has increased to EUR 30.8 million. The Group results were positively influenced by one-off recognition of balanced mandatory procurement revenues and costs, improving the results of Q1 2014 by EUR 21.0 million compared to Q1 2013. Whereas the results were negatively affected by lost revenues due to electricity supply at the regulated tariff in Latvia.

In the first three months of 2014, the total amount of investments was EUR 27.5 million. To increase the network service quality and technical parameters, Latvenergo Group continues to increase the amount of investments in network assets. In Q1 2014, the amount invested in the network assets represented more than 70% of the total investments.

In the beginning of 2014, the international rating agency Moody’s Investors Service has reconfirmed Latvenergo AS credit rating Baa3 with a stable outlook.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv

www.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), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.