LESTO AB, identification code 302577612, registered office placed at Aguonų str. 26, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 603 944 593; ISIN code LT0000128449.
Lithuanian electricity distribution company LESTO, which is a part of the state-controlled energy group Lietuvos Energija, in the first quarter of 2015 boosted investments in network upgrade, increased operations efficiency and offered more convenient services for customers.
During the three months of 2015 LESTO investments reached EUR 17.3 million – this is 44.2% more compared to the same period of 2014. Since the company's inception this is the biggest investments during the first quarter.
Aidas Ignatavičius, CEO of LESTO, says that increasing investments in network upgrade will ensure better reliability and quality of services, will reduce costs for equipment maintenance and repair. Investment in network upgrading and reconstruction increased at most – by 3.8 times to EUR 8.8 million.
"The current state of the electricity distribution network requires significant investments. We seek to ensure that the network is not only reliable, but also safe and fits the needs of our customers. It is also important to invest in advanced and smart technologies, because it reduces operating costs and increases operational efficiency,” – says Aidas Ignatavičius.
He added that in the first quarter of 2015, the company has streamlined power connection process for new customers. From now on, all documents required to establish a power connection can be issued in one visit. During the first quarter of 2015 LESTO have connected more than 5.3 thousand new customers – 36% more than in the same period of 2014. New users connected capacity allowance amounted to 84 thousand kW and increased 52%.
During January-March of 2015 LESTO group‘s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) amounted to EUR 42.3 million – that is an increase of 4.6% compared to the same period of 2014. EBITDA margin increased by 3.72% points and amounted to 26.59%.
The operating expenses totalled to EUR 21.64 million - 1.2% less than in the same period of 2014. Due to better management of premises rent utility costs have reduced almost by a quarter.
The consolidated net profit of LESTO group for the three months of 2015 amounted to EUR 27.9 million – 2.4 times more than in January-March of 2014 when it was equal to EUR 11.6 million. This was resulted due to significantly lower depreciation and amortization expenses. They are calculated on the basis of a new assessment of the Company’s tangible assets.
Purchase costs of electricity and other related services decreased by 17% to EUR 95.2 million. The volume of network service during three months of 2015 increased by 1.1% and amounted to 2.2 billion kWh.
During the first quarter of this year LESTO purchased 575 million. kWh in the Nord Pool Spot power market, where the average kWh price was around 4 euro cents. From the top three Lithuania electricity producers, which operated at that time, LESTO purchased 293 million. kWh of electricity with twice higher average selling price - 8.7 euro cents per kWh. While purchasing less electricity from combined heat and power plants LESTO saves costs of to the public service obligations cost.
LESTO group revenues in the first quarter of 2015 amounted to EUR 159.2 million – 10.1% down compared to same period in 2014. Revenues shrank due to the decrease of electricity prices to consumers.
“Since January 1st, electricity prices decreased more than 6 percent on average. We are delighted that the lower prices were partly determined by our increasing efficiency. We endeavour to save both: the company‘s and electricity consumers finances. Due to lower electricity prices statistical household in Lithuania will save EUR 14 per year compared with last year”, - says CEO of LESTO.
During the first quarter of 2015, with the influence of natural disasters (“force majeure”) the system average interruption duration index (SAIDI) per customer amounted to 37.65 minutes, while in 2014 January-March it was equal to 51.07 minutes. With the influence of natural disasters the system average interruption frequency index (SAIFI) per customer decreased from 0.33 to 0.32.
At the end of February this year, the Board of Lietuvos Energija approved the concept of activity chain purifying programme for Lietuvos Energija group, foreseeing the merger of LESTO and Lietuvos Dujos AB to the joint venture distribution network company.
LESTO shares are quoted on the “Nasdaq OMX”. The state-owned energy company Lietuvos Energija, UAB owns 94.39% LESTO shares, remaining shares are traded on the stock exchange.
In 2014 LESTO investor relations practices were among the best Nasdaq Baltic listed companies.
Information is not confidential.
Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516.
