Lithuanian electricity distribution company LESTO, which is a part of the state-controlled energy group Lietuvos Energija, during the first six months of 2014 has continued to increase operational effectiveness and investments in upgrading distribution network. Due to the country's economic growth LESTO has connected 11,801 objects of new customers, 37 % more than in the same period of 2013.
In January-June LESTO group‘s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) amounted to 250 million LTL – that is an increase of 4.2 % compared to the same period of 2013. EBITDA margin increased by 2.22 per cent points and amounted to 21.87 %.
The consolidated net profit of LESTO group for the first half of 2014 amounted to 53.4 million LTL – 2.3 times more than in January-June of 2013 when it was equal to 22.8 million LTL. The significant improvement was influenced by the decrease in purchase costs of electricity and other related services. These costs amounted to 740.1 million LTL, or 12.3 % less compared to the same period of 2013.
"Consistent increase of operational effectiveness and focused execution of strategic decisions continued to improve company’s performance. Assuring an increase of the value added for our customers we aim for ambitious financial results. We increase investments in improving distribution network, shortening and simplifying the process of the new customer connection and developing remote customer service channels. The first half of this year is significant for us, because we have confirmed LESTO long-term strategy for 2014-2020, where we outlined specific long-term targets, including enhancement of the company’s value,” said Aidas Ignatavičius, LESTO CEO and Chairman of the Board.
LESTO group‘s revenue of January-June of 2014 amounted to 1.143 billion LTL and, compared with the same period of 2013, declined by 6.3 %. Revenues shrank due to the decrease of electricity prices to consumers. The volume of network service during the reported period increased by 0.5 % and amounted to 4.2 billion kWh.
During the first half of the year 32 % of electricity network service volume was allocated to residents. Industrial and service institutions consumed 28 % and 11 % respectively, other objects – 29 %. In the first six months of 2014, LESTO investments in electricity network expansion and modernization reached 120 million LTL – this is 6 % more compared to the same period of 2013. In order to increase network reliability and security, compared to the same period of 2013 investments increased by 36.9 % in reconstruction of low voltage 0,4-10 kV network.
In January-June of 2014, with the influence of natural disasters (“force majeure”) the system average interruption duration index (SAIDI) per customer amounted to 76.57 minutes, while during the same period last year it was equal to 50.41 minutes. This index has increased due to unfavorable weather conditions in spring - 78.4 % of electricity distribution system consists of overhead power lines, so the electricity supply is still very dependent on the weather conditions. SAIDI index excluding “force majeure” did not change significantly during the first half of 2014 and amounted to 32.16 min. (2013 January-June – 32.58 min.).
During the reported period of 2014, with the influence of natural disasters (“force majeure”), the system average interruption frequency index (SAIFI) per customer reached frequency of 0.63, while last year it was equal to 0.58. SAIFI index excluding “force majeure” reached 0.42 times and, compared with the same period of 2013, has decreased slightly.
LESTO group consists of subsidiaries Elektros tinklo paslaugos, NT Valdos and associated companies Technologijų ir inovacijų centras and Verslo aptarnavimo centras.
LESTO is one of the biggest companies by market capitalization in OMX Baltic securities exchange market.
Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516.
