Vilnius, Lithuania, 2015-08-31 08:00 CEST (GLOBE NEWSWIRE) -- In Half 1 of 2015, AB Lietuvos Dujos owned by the state-owned energy group Lietuvos Energija increased its sales revenues by 5 percent to EUR 29.9 (in 2014: EUR 28.5 million). During the reporting period, the Company earned EUR 13.4 million in profit before interest, taxes, depreciation and amortization (EBITDA), or 12 percent more than in January - June of 2014 when its EBITDA was EUR 12 million. This change was conditioned by better operating results determined by increased revenues and decreased costs.
Net profit of Lietuvos Dujos earned from natural gas distribution activity was 28 percent greater compared to the same period last year and totalled EUR 7.7 million (net profit from natural gas distribution activity totalled EUR 6 million in Half 1 of 2014). Costs of the Company decreased by 1 percent in Half 1 of 2015 and totalled EUR 21.8 million (compared to EUR 22 million in Half 1 of 2014).
According to Liudas Liutkevičius, CEO of Lietuvos Dujos, increasing confidence of customers in natural gas has contributed to positive operating results of the Company, which allows assuming that the captured growth in the number of new gas customers creates a positive prospect for greater gas consumption in the future.
“We plan on building about one hundred kilometres of gas distribution pipeline and connecting more than 3 000 new customers this year. The number of those interested in the possibility of using natural gas for heating houses has increased. We have observed that builders of real estate objects constructing blocks of residential houses in suburbs of major cities have been choosing natural gas for the heating of houses more and more often. Also, the number of individual home owners connecting to the gas network has increased. Such a shift in consumer choice is likely to have been determined by an emerged possibility to choose the source of natural gas supply by themselves, and, of course, by a competitive price of gas” - said Liudas Liutkevičius, Chairman of the Board and CEO of Lietuvos Dujos.
In Half 1 of this year, Lietuvos Dujos connected 1.5 thousand new customers to the gas distribution network, which is 40 percent more than during the same period of last year. During the half-year, the Company‘s investments totalled EUR 3.8 million, i.e. EUR 1 million, or 37 percent more compared to the investments in the gas distribution activity made in Half 1 of 2014. Major investments, namely EUR 2.2 million, were made into the construction of new gas systems, while investments in the reconstruction of gas systems and projects of the ensurance of gas distribution reliability and safety were EUR 1.6 million, which is 78 percent more than in Half 1 of last year, when the investments amounted to EUR 0.9 million.
In January - June, AB Lietuvos Dujos transported 3.8 terawatt-hours (TWh) of natural gas via its distribution networks, which is about 12 percent less than during the same period last year. Gas distribution volumes decreased mainly due to unusually warm winter weather, reduced electricity production in heat and electricity production companies and the replacement of natural gas with biofuel; however, this year the volume of transported gas decreased at a slower rate compared to the Half 1 of 2014, when the volume of gas transmitted via distribution pipelines fell more than 20 percent.
On 1 June 2015, upon the implementation of internal reforms, Lietuvos Dujos started a new phase: it reorganized its branches in the major cities of the country into regional gas network departments and merged the branches of Šiauliai and Panevėžys into the joint Northern region gas network department. In addition to the said division, another three natural gas departments, namely those of Vilnius, Kaunas and Klaipėda, are operating. This reform allowed creating a more flexible company, facilitating the company’s structure and speeding up the decision-making process, thus accelerating gas customer service and making the company’s activities more efficient.
Laura Šebekienė
Head of Communications
Ph. +370 633 99940
Email: l.sebekiene@lietuvosdujos.lt
