Vilnius, Lithuania, 2014-11-28 08:45 CET (GLOBE NEWSWIRE) -- On 1 November, 2014, in the implementation of the provisions of the EU’s Third Energy Package, which require to unbundle the activities in the natural gas sector, the unbundling of gas distribution and supply activities was completed. Since 1 November, Lietuvos Dujos AB has been functioning as the operator of gas distribution network and is responsible for the gas distribution infrastructure, its maintenance and development; the Company has been putting effort to attract new gas customers and to connect them to the gas network and, if needed, it has to ensure guarantee gas supply to consumers. AB Lietuvos Dujos is operated by the largest state owned energy company group Lietuvos Energija.
‘Having completed the reorganisation of gas industry, we are now turning over a new leaf in the operation of the state-owned Lietuvos Dujos. We have been taking coherent steps to start a new phase the focus whereof will be looking for more effective ways to increase the number of natural gas customers and trying to use the existing gas distribution system better,’ says Liudas Liutkevičius, Chairman of the Board of Directors and Chief Executive Officer of Lietuvos Dujos.
The Company’s revenues from the continuing operations of natural gas distribution over the nine months of 2014 have increased by 6% compared to the same period last year and amount to LTL 125.8 million (the revenues received over the nine months of 2013 amounted to LTL 118.4 million accordingly). This growth was determined by the increased prices for distribution services which were established when the new price regulation period started (2014–2018).
In the January–September 2014 period, the Company’s distribution activity expenses increased and amounted to LTL 312.7 million (the amount of the expenses in the same period last year was LTL 120.3 million). The increase was determined by the one-time impairment of property, plant and equipment used in the distribution activities amounting to LTL 196 million which was formed on 30 June 2014. The costs of natural gas of distribution activity decreased due to the reduced price of imported natural gas, after the Company retrospectively applied the corrected formula used to calculate the price of imported gas.
Net loss of Lietuvos Dujos AB of nine months of 2014 from the continuing gas distribution operations and the discontinued gas supply operations amounted to LTL 110.2 million in total. Net profit of the same period last year amounted to LTL 42.3 million. In the January-September period, loss from the distribution activities amounted to LTL 157.4 million which was determined by the aforementioned one-time impairment of property, plant and equipment. Net profit of the previous year received from distribution activities amounted to LTL 1.6 million. Net profit of nine months of 2014 from distribution activities would amount to LTL 9.2 million, impairment of property, plant and equipment excluded.
EBITDA of nine months of 2014 of distribution activities amounted to LTL 37.6 million. In the calculations of EBITDA the impact of impairment of property, plant and equipment is excluded. EBITDA of the same period last year amounted to LTL 27.8 million.
Revenues from the discontinued gas supply operations decreased over the nine months of 2014 due to the reduced price of gas import and smaller sales volumes, and amounted to LTL 727.7 million (the amount of the previous year being LTL 990.4 million). As a result of the reduced expenses of natural gas, the expenses of the discontinued supply operations reduced to LTL 670.2 million (last year they amounted to LTL 954.9 million). Net profit from the discontinued supply operations amounted to LTL 47.3 million (last year, net profit of gas supply activities was LTL 30.7 million).
The decrease in the price of imported natural gas positively affected the results of the January-September 2014 period, after the Company retrospectively applied the corrected formula for the calculation of the gas import price.
Over the nine months of 2014, customers of Lietuvos Dujos were supplied 595.2 MCM of natural gas, or 19.3% less than over nine months of 2013, when 737.5 MCM of gas was supplied. Over the January-September 2014 period, the Company transported 498.9 MCM of natural gas via gas distribution pipelines, which is 19.9% less than during the same period last year. AB Lietuvos Dujos exploit 84,000 km of gas distribution pipelines distributing natural gas to more than 560,000 customers.
‘The fact that the volume of natural gas distributed to customers over the nine months of this year has decreased by one fifth was largely determined by warm winter and, naturally, the smaller demand and use of gas needed to generate heat’, says Liudas Liutkevičius.
In recent years, after the economy of the country revived, the growth in the number of new natural gas customers has been observed. Over nine months of this year, about 3,600 requests to connect new customers to the distribution systems operated by AB Lietuvos Dujos were received. During the same period last year, 3,200 of such requests were received. In total about 3,700 of new customers are planned to be connected to the system and about 95 kilometres of gas distribution pipelines are planned to be built in 2014.
Over nine months of 2014, investments of continuing operations of Lietuvos Dujos AB amounted to LTL 24.4 million, which is 33% less than in the same period of 2013, when investments amounted to LTL 36.4 million. The Company invested most of its money in the construction of new gas systems. Another share of investments was allocated to ensure reliability of gas supply and security of gas distribution system.
The shares of AB Lietuvos Dujos are quoted on the Main List of the Stock Exchange NASDAQ OMX Vilnius. Lietuvos Energija, UAB controls 96.6% of shares of AB Lietuvos Dujos, the rest – 3.4 % – of the Company’s shares are owned by minority shareholders.
Laura Šebekienė
Head of Communications
Ph. +370 633 99940
Email: l.sebekiene@lietuvosdujos.lt
