Riga, 2014-11-28 12:05 CET (GLOBE NEWSWIRE) -- Latvenergo Group market share exceeds one-third of the Baltic electricity consumption - retail electricity supply has been increased by 7% compared to the respective period last year and is 6,477 GWh. The major part or 80% of its electricity retail has been supplied on the open electricity market and 20% has been supplied on the regulated electricity tariff. Latvenergo Group electricity supply volume in Latvia was 4,109 GWh, in Lithuania – 1,393 GWh and in Estonia – 975 GWh. Most significantly electricity supply increased outside Latvia – in 9 months of 2014, the electricity supply volume in Lithuania and Estonia has been increased by 47% and comprises more than one‑third of retail electricity supply.
Uldis Bariss, Latvenergo AS Chief Commercial Officer: “We have been working in the Baltic market purposefully, therefore more and more legal clients, as well as households in neighboring countries have chosen Elektrum as most beneficial offer. Our clients in Estonia and Lithuania have acknowledged the accessibility and quality of customer service as well as stability and predictability of the company in the future. As a result the volume of electricity supplied and number of clients has been increased in the neighboring countries. This year the number of households to which Elektrum supplies electricity is approximately 28 thousands, therefore electricity supplied to households in 9 months of this year was more than twice as much as in the previous year. Whereas number of legal Elektrum clients in September 2014 exceeds 6 thousands, which through the year comprises an increase for more than half.”
Since mid-2014 Latvenergo Group trades all of its generated electricity on Nord Pool Spot exchange, thus multiple times increasing electricity supply in the Latvian bidding area and ensuring greater liquidity. Overall in 9 months of the year, the total amount of electricity generated by the power plants of Latvenergo Group was 2,688 GWh, which is 29% lower than last year. The year 2014 is a year with the lowest water inflow recorded in the Daugava River during the last 10 years. As a result, generation at Daugava HPPs decreased by 1,597 GWh and was 33% lower than in the respective period last year.
In August 2014, new 330 kV electricity transmission line connection Grobiņa‑Ventspils of the Kurzeme Ring project was commissioned. The Kurzeme Ring investment project is part of the international energy infrastructure development project NordBalt that providesstrengthening of the transmission network in the western region of Latvia with new 330kV transmission lines. Advanced and environmentally friendly technology selection is a constant priority of the Group. One of the targets of the EU Energy and Climate Policy, that is also stipulated in the policy planning documents of Latvia, is to foster usage of renewable energy sources, to conserve nature and environment and decrease CO2 emissions. Taking into consideration that western part of Latvia has the largest wind potential in the country, the commissioning of Kurzeme Ring section will allow to preform larger capacity connections form wind and other renewable resources, fostering integration of renewable resources into the energy market. Besides, development of energy transmission network will provide an opportunity to diversify electricity supply sources and use generation equipment more efficiently. Kurzeme Ring is a project of national significance, enabling future opportunity to use the Lithuania-Sweden marine cable NordBalt to import cheaper electricity from Nordic countries. The total construction costs of the Kurzeme Ring project are estimated at EUR 220 million and it is scheduled for completion in 2019. Total investments reached EUR 94.8 million as at 30 September 2014.
In 9 months of 2014, Latvenergo Group revenue is EUR 748.9 million and net profit was EUR 30.0 million (In 9 months of 2013 – EUR 819.1 million and EUR 32.9 million respectively). The results of the Group were negatively affected by lower output at Daugava hydropower plants, whereas lost revenues due to electricity supply at the regulated tariff in Latvia composed EUR 37.6 million in 9 months of 2014 (in 2013: EUR 44.2 million).
In 9 months of 2014, the total amount of investments was EUR 114.6 million. To improve the quality of network services and technical parameters, the Group continuously invests in network assets. In 9 months of 2014, the amount invested in the network represents 75% of the total investments. Significant amount of investment comprises investments in environmentally friendly and environmental development projects – in 9 months of 2014, almost EUR 10 million were invested in Daugava HPPs hydropower unit reconstruction, taking care about sustainable business practices and effective usage of water resources.
The Unaudited Interim Condensed Consolidated Financial Statements for 2014 will be published on 27 February 2015.
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), 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.
