Riga, 2015-11-30 13:07 CET (GLOBE NEWSWIRE) -- In the first nine months of 2015, Latvenergo Group is the largest retail electricity supplier in the Baltics with market share of approximately 1/3 of the total electricity retail market. The number of customers in Lithuania and Estonia has increased by 5% compared to the respective period last year. In total, retail electricity supply in the Baltics reached 5,801 GWh. The amount of electricity supplied in Lithuania and Estonia constitutes 1,875 GWh, which is by 40% more than the competing electricity traders have supplied in Latvia.
In the first nine months of 2015, Latvenergo Group power plants have generated 2,676 GWh of electricity and 1,584 GWh of thermal energy. Compared to the respective period last year, the amount of generated electricity has not changed significantly – Daugava hydropower plants (HPPs) have generated 1,590 GWh, whereas Riga combined heat and power plants (CHPPs) have generated 1,048 GWh. Similarly to 2014, also in 2015 the operation of Daugava HPPs was influenced by uncommonly low water flow in Daugava. Such a low annual average water flow has previously only been observed in 1976. Whereas Riga CHPPs ensured an opportunity to stabilize the electricity price in the Latvian and Lithuanian bidding area and limited the risk of increase in the electricity price.
In the first nine months of 2015, Latvenergo Group revenue constituted 685.9 million euros and profit – 68.6 million euros (2014: 784.9 million euros and 30.0 million euros respectively). The decrease of Latvenergo Group revenue was determined by changes in financial results accounting principles starting from the entrance into operation of Enerģijas publiskais tirgotājs AS as of 1 April 2014, thereby, mandatory procurement payments are not recognized in the statement of profit or loss. In turn, the improvement in the profitability was mainly determined by the opening of electricity market to households in Latvia as of 1 January 2015. Until then, Latvenergo AS supplied electricity to households at regulated tariffs, which were below the market price.
The total amount of investments in the first nine months of 2015 constitutes 136.7 million euros, which is by 19% more than in the respective period of the last year. We have invested a significant amount for the modernization of networks to ensure high quality, technical indicators and safety of operation of network services. In the first nine months of 2015, investments in network assets constitute 63% of the total amount. Latvenergo Group continues to carry out its most significant investment projects: the program for reconstruction of hydropower units of Daugava HPPs, the project Kurzeme Ring and the Latvian-Estonian third power transmission network interconnection. The investment in the reconstruction program of hydropower units of Daugava HPPs constitutes 26.9 million euros in the 9 months of 2015.
The unaudited interim condensed financial statements of Latvenergo Group for 2015 will be published on 29 February 2016.
* EBITDA – earnings before interest, corporate income tax, share of profit or loss of associated companies, depreciation and amortisation, and impairment of intangible and fixed assets.
Key Performance Indicators
Performance indicators
| 9 months 2015 | 9 months 2014 | ||
| Retail electricity supply | GWh | 5,801 | 6,485 |
| Electricity generation | GWh | 2,676 | 2,688 |
| Thermal energy supply | GWh | 1,525 | 1,575 |
| Number of employees | 4,180 | 4,560 | |
| Moody's credit rating | Baa2 (stable) | Baa3 (stable) |
Financial indicators
| 9 months 2015 | 9 months 2014 | ||
| Revenue | million EUR | 685.9 | 748.9 |
| EBITDA 1) | million EUR | 236.2 | 178.6 |
| Net profit | million EUR | 68.6 | 30.0 |
| Assets | million EUR | 3,530.5 | 3,522.3 |
| Equity | million EUR | 2,060.3 | 2,020.2 |
| Net debt 2) | million EUR | 682.5 | 713.7 |
| Investments | million EUR | 136.7 | 114.6 |
Financial coefficients
| 9 months 2015 | 9 months 2014 | ||
| Net debt / EBITDA 3) | 2.3 | 3.2 | |
| EBITDA margin 4) | 31% | 22% | |
| Capital ratio 5) | 58% | 57% |
1) EBITDA: earnings before interest, corporate income tax, share of profit or loss of associates, depreciation and amortisation, and impairment of intangible and fixed assets
2) Net debt: borrowings at the end of the period minus cash and cash equivalents at the end of the period
3) Net debt / EBITDA: net debt to EBITDA ratio (12-month rolling)
4) EBITDA margin: EBITDA / revenue (12-month rolling)
5) Capital ratio: total equity/ total assets
Consolidated statement of profit or loss*
for a period of 9 months, which ends on 30 September 2015
| 01/01–30/09/2015 | 01/01–30/09/2014 | ||
| EUR'000 | EUR'000 | ||
| Income | 685,945 | 748,885 | |
| Other income | 3,630 | 2,155 | |
| Used raw materials and consumables | (336,343) | (454,364) | |
| Staff costs | (71,151) | (73,323) | |
| Depreciation, amortisation, and impairment of fixed assets | (149,040) | (131,843) | |
| Other costs of economic activity | (45,873) | (44,712) | |
| Profit of economic activity | 87,168 | 46,798 | |
| Financial income | 2,192 | 2,227 | |
| Financial costs | (14,557) | (15,206) | |
| Share of profit / (loss) of associated companies | – | (493) | |
| Profit before taxes | 74,803 | 33,326 | |
| Corporate income tax | (6,208) | (3,308) | |
| Profit in the reporting period | 68,595 | 30,018 |
Consolidated report on the financial condition*
| 30.09.2015 | 31.12.2014 | ||
| EUR'000 | EUR'000 | ||
| ASSETS | |||
| Long-term assets | |||
| Intangible investments and fixed assets | 3,063,833 | 3,079,327 | |
| Investment properties | 751 | 1,343 | |
| Long-term financial investments | 41 | 41 | |
| Financial assets retained until the end of the term | 20,623 | 28,528 | |
| Other long-term debtors | 7 | 14 | |
| Total long-term assets | 3,085,255 | 3,109,253 | |
| Current assets | |||
| Stocks | 26,783 | 22,560 | |
| Debts of buyers and customers, and other debtors | 241,244 | 233,752 | |
| Financial assets retained until the end of the term | 7,860 | – | |
| Cash and cash equivalents | 169,407 | 121,011 | |
| Total current assets | 445,294 | 377,323 | |
| TOTAL ASSETS | 3,530,549 | 3,486,576 | |
| EQUITY CAPITAL | |||
| Share capital | 1,288,446 | 1,288,446 | |
| Reserves | 649,320 | 645,829 | |
| Undistributed profit | 116,269 | 79,995 | |
| TOTAL share of participation in the capital by shareholders of the parent company | 2,054,035 | 2,014,270 | |
| Share of participation in the capital by minority shareholders | 6,245 | 6,531 | |
| Total equity capital | 2,060,280 | 2,020,801 | |
| CREDITORS | |||
| Long-term creditors | |||
| Loans | 747,986 | 688,297 | |
| Liabilities of deferred corporate income tax | 269,788 | 268,026 | |
| Savings | 14,971 | 15,588 | |
| Financial derivatives | 10,391 | 11,698 | |
| Other creditors and income in the next periods | 195,001 | 194,474 | |
| Total long-term creditors | 1,238,137 | 1,178,083 | |
| Short-term creditors | |||
| Debts to suppliers and other creditors | 120,011 | 139,912 | |
| Loans | 103,955 | 138,925 | |
| Financial derivatives | 8,166 | 8,855 | |
| Total short-term creditors | 232,132 | 287,692 | |
| Total creditors | 1,470,269 | 1,465,775 | |
| TOTAL LIABILITIES | 3,530,549 | 3,486,576 |
* - unaudited condensed consolidated financial reports. Prepared in accordance with the International Financial Reporting Standards approved by the European Union.
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 Baa2/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.
