Lietuvos Energijos Gamyba, AB, interim financial information for the first three months of 2017


Elektrėnai, Lithuania, 2017-05-15 15:00 CEST (GLOBE NEWSWIRE) -- Lietuvos Energijos Gamyba, AB, legal entity code 302648707, the registered office address is Elektrinės st. 21, Elektrėnai (hereinafter – the Company). Overall number of ordinary registered shares is 635 083 615, ISIN code – LT0000128571.

The Company announces the unaudited financial results for the first three month period ended 31 March 2017.

  • The Company’s sales revenue of the January-March period of 2017 are EUR 31.79 million and are 5 percent smaller than the revenue of the January-March period of 2016 (EUR 33.46 million).
  • The Company’s profit of the January-March period of 2017, excluding interest, taxes, depreciation and amortization (EBITDA) reaches EUR 14.50 million and is 52 percent bigger than the profit of January-March period of 2016 (EUR 9.56 million).
  • The Company’s net profit of the January-March period of 2017 reaches EUR 3.97 million and is 72 percent smaller than the net profit of January-March period of 2016 (EUR 13.96 million).


The main reason for the loss of sales revenue is a huge decrease of electricity production in Elektrėnai Complex, which produced only 6 GWh of electricity during the first three months of 2017. The electricity production units in Elektrėnai were not generating electricity due to fairly smaller prices of electricity in exchange, which were smaller than the prices at the beginning of 2016. As a result, the combined cycle gas turbine unit in Elektrėnai Complex could not operate competitively, hence, it was activated only once. Last year in the same period it was activated nine times and produced nearly nine times more electricity (34 GWh).

The generation of Kruonis pumped storage power plant produced was by third smaller during the January-March period of 2017 compared to the same period of 2016 (104 GWh and 153 GWh respectively).

One of the major reasons for the increase in EBITDA earnings is the flood, which made the Kaunas Algirdas Brazauskas Hydroelectric Power Plant generate a greater amount of energy. During the January-March period of 2017 this power plant produced 132 GWh of electricity, i. e. 12 percent more than in the same period in 2016 (118 GWh). Overall, the power plants of the Company produced 242 GWh of electricity during the January-March period of 2017 – 21 percent less than during the same period in 2016 (305 GWh).

The increase in EBITDA is also stimulated by the fact that in 2017 Company’s revenue from regulated activities was not reduced due to the regulation of commercial production and inspection of the Company’s activity in 2010-2012. As a result of the decisions of The National Commission for Energy Control and Prices, financial reports of the Company in 2016 January-March did not acknowledge a part of regulated activity income and this had a negative impact of EUR 5.8 million on the EBITDA indicator of the Company.

The change in the Company’s net profit (compared to the results of January-March period of 2017 and January-March period of 2016) emerged due to the effect of one-off factors – the selling result of the business part, which was calculated in early 2016 (EUR 19,5 million). If the sale of the part of the business was excluded, the Company would be experiencing an increase in net profit.

“The changing market conditions imply that our power plants face a greater rivalry. We take this challenge seriously, therefore, we effectively manage our costs. In addition, we support the availability of operating facilities in order to be able to start producing electricity in time and contribute to a proper supply of electricity to customers and to the stabilization of electricity prices on the market. We are also actively implementing the Company’s strategy which is aimed at making our employees dedicate their competency and time to delivering new services – in March we provided the first maintenance services to external customers”, – chairwoman of the Company’s board and CEO of the Company Eglė Čiužaitė points out the most important activity issues for 2017.

         Valentas Neviera, Head of Communication Division, tel. +370 670 25997, e-mail. valentas.neviera@le.lt


Attachments

January-March 2017_interim financial statements and interim report.pdf