Vilnius, Lithuania, 2015-05-29 15:14 CEST (GLOBE NEWSWIRE) -- AB Lietuvos Dujos, which is owned by the state-owned energy group Lietuvos Energija, in Q1 of 2015 generated EUR 12 million in earnings before interest, taxes, depreciation and amortization (EBITDA), or 10.5 percent more than in January - March 2014, when its EBITDA was EUR 10.8 million. This change was determined by lower costs of purchase of natural gas for technologic needs.
Sales revenue generated by the Company during January-March increased by 2 percent compared to the same period last year and totalled EUR 20.5 million (compared to EUR 20.2 in 2014).
Net profit of Lietuvos Dujos for the 3 months of this year earned from the natural gas distribution activity was 21.5 percent greater than during the same period last year and amounted to EUR 8.2 million (in 3 months of 2014, total net profit of the Company was EUR 9.6 million, out of it profit of EUR 6.8 million from the continued gas distribution activity and EUR 2.8 million - from discontinued supply activity).
In 3 months of 2015, the Company’s expenses decreased by 11.6 percent and totalled EUR 11.1 million (compared to expenses of EUR 12.5 million in Q1 of 2014).
“The first quarter of this year was successful: we smoothly engaged in the stage of significant operational changes and experienced improving financial results. Operating expenses were lower than planned, we managed to maintain a stable level of revenue; net profit and EBITDA of the Company increased. Our minority shareholders also appreciate positive changes occurring in Lietuvos Dujos - during the first quarter of this year, the price of the Company’s shares increased by 20 percent”, said Liudas Liutkevičius, Chairman of the Board and CEO of Lietuvos Dujos.
During the first quarter of this year, Lietuvos Dujos connected 736 new customers to its gas distribution network, which was 49 percent more than during the same period last year. The Company’s investments in 3 months of 2015 totalled 1 529 thousand EUR, of which investments into the construction of new gas systems were EUR 869 thousand, while investments into the reconstruction and modernization of gas systems amounted to EUR 652 thousand.
In January - March, Lietuvos Dujos transported 2.6 terawatt-hours (TWh) of natural gas via its gas distribution pipes, which was about 16 percent less that during the same period last year. Gas distribution volumes mainly decreased due to unusually warm winter, decreased electricity production in companies producing heat and electricity as well as the replacement of natural gas with biofuel. “Being well aware of the fact of decreasing natural gas consumption, we are undertaking actions allowing the Company to adapt to realities of today and to improve our performance results in the future”- said Liudas Liutkevičius.
In the beginning of 2015, Lietuvos Dujos engaged in internal reforms facilitating the management of the Company. Starting from 1 June, regional divisions of the Company will become more integrated and start operating as regional gas network departments, thus seeking to create a more flexible company, make the Company’s structure flatter and thus accelerate the decision-making process, speed up the service of gas consumers and make operations of the entire company more efficient.
Projects for the centralization of functions serving core business were implemented during the first quarter of 2015. Administration functions of public procurement and labour relations of Lietuvos Dujos were successfully transferred to the Lietuvos Energija group company UAB Verslo Aptarnavimo Centras, whereto the accounting function will also be transferred in the nearest future. Also, the plan is to transfer the ITT function to the Group company UAB Technologiju Inovaciju Centras. Seeking for a better operating efficiency, some activities were centralized within the Company itself.
The review of activities and processes in Lietuvos Dujos contributed to an even greater change - the merger of gas and electricity distribution network operators into a joint company was announced in March. The benefit of merging the companies is reasoned by the reduction of costs, more convenient customer service and the development of new services. “The aim of all these changes is to create maximum convenience through cleared-up operations, increased efficiency and reduction of operating costs to allow him to refer to one organization for both electricity and gas-related issues and to create preconditions for the reduction of electricity and gas distribution tariffs”, - said Liudas Liutkevičius.
One of the more significant innovations implemented for customer convenience is the provision of services to customers in joint customer service centres of Lietuvos Dujos, Lietuvos Duju Tiekimas and LESTO started on March 30. Customers now are able to receive all gas and electricity-related services at one point, they are served by competent specialists advising them on payment, installation of gas and electricity and other related issues, thus allowing users to save their time and to receive the services in a quality and fast manner.
Laura Šebekienė
Head of Communications
Ph. +370 633 99940
Email: l.sebekiene@lietuvosdujos.lt
