Riga, 2017-05-31 15:00 CEST (GLOBE NEWSWIRE) -- Compared to the respective period in the previous year, the amount of electricity generated by Latvenergo Group in Q1 2017 has increased significantly – by 50%, reaching 1,855 GWh. This increase was mainly facilitated by the increase in power generation at Daugava HPPs by 91%, reaching 1,148 GWh in Q1 2017, because the spring flood period in the Daugava River in this year was constant and relatively lasting after several years. Whereas power generation at Riga CHPPs has increased by 12% in Q1 2017, reaching 692 GWh. Latvenergo Group has successfully used advantages offered by the diversified generation portfolio, adapting operation of the Riga CHPPs and the Daugava HPPs to the market situation and generating electricity, which is competitive not only on the scale of Baltic states, but also on the scale of Nordic countries.
In the reporting period, the Group supplied 1,882 GWh of electricity to Baltic retail customers – 1,263 GWh in Latvia, 360 GWh in Lithuania and 260 GWh in Estonia. The total number of customers outside Latvia exceeds 34.6 thousand. The overall amount of retail electricity trade outside Latvia accounts for 1/3 of the total.
Compared to the respective period in the previous year, Latvenergo Group’s revenue did not change significantly in Q1 2017, and amounts to 265.8 million euros. During the reporting period, Latvenergo Group’s EBITDA increased by 14% reaching EUR 113.8 million, while the Group’s profit in Q1 2017 was EUR 55.1 million. The Group’s results were positively impacted by the 91% greater electricity output at the Daugava HPPs.
In Q1 2017, the total amount of investment has not changed significantly compared to the respective period last year; it amounts to EUR 32.1 million. Approximately 80% of overall investments were made in network assets. Key investment projects of Latvenergo Group are: reconstruction of hydropower units of Daugava HPPs, which will ensure their operation for next 40 years; the Kurzeme Ring project, which significantly increases power supply safety in the Kurzeme region and Latvia as a whole, allowing further integration of the Baltics into the Nordic electricity market; as well as the Third Estonia-Latvia power transmission network interconnection - the project that bears major significance for the future electricity transmission infrastructure of the whole Baltic region.
On 26 January 2017, Latvenergo AS was the first enterprise in the Baltics to receive the award “Best Investor Relations in Baltics among Bond Issuers”, acknowledging reliable, transparent and best practice investor relations in 2016.
On 16 February 2017, Moody’s reconfirmed the credit rating for Latvenergo AS: Baa2 with a stable outlook.
On 3 March 2017, changes were made in the composition of the Audit Committee of Latvenergo AS, increasing the number of Members. According to the decision of the Shareholders’ Meeting of Latvenergo AS, three former members of the Committee will continue their work in the Committee, and two representatives of the Supervisory Board of Latvenergo AS – Andris Ozoliņš and Andris Liepiņš – will join them. The term of office of the Audit Committee is three years.
The next interim financial statements of Latvenergo Group for 2017 will be published on 31 August and 30 November.
* EBITDA – earnings before interest, corporate income tax, share of profit or loss of associates, depreciation and amortization, and impairment of intangible and fixed assets.
Latvenergo Group Key Performance Indicators
Operational Figures
| Q1 2017 | Q1 2016 | ||
| Retail electricity supply | GWh | 1,882 | 2,174 |
| Electricity generation | GWh | 1,855 | 1,236 |
| Thermal energy generation | GWh | 1,137 | 1,173 |
| Number of employees | 4,133 | 4,181 | |
| Moody's credit rating | Baa2 (stable) | Baa2 (stable) |
Financial Figures
| Q1 2017 | Q1 2016 | ||
| Revenue | MEUR | 265.8 | 263.5 |
| EBITDA1) | MEUR | 113.8 | 100.1 |
| Profit | MEUR | 55.1 | 38.6 |
| Assets | MEUR | 3,956.2 | 3,607.5 |
| Equity | MEUR | 2,471.6 | 2,133.4 |
| Net debt2) | MEUR | 530.6 | 657.7 |
| Investments | MEUR | 32.1 | 34.7 |
Financial Ratios
| Q1 2017 | Q1 2016 | ||
| Net debt / EBITDA3) | 1.5 | 2.2 | |
| EBITDA margin4) | 44% | 33% | |
| Return on equity5) | 6.4% | 4.0% | |
| Return on assets6) | 3.9% | 2.4% | |
| Return on capital employed7) | 5.8% | 3.6% | |
| Net debt / equity8) | 21% | 31% |
1) EBITDA – earnings before interest, corporate income tax, share of profit or loss of associates, depreciation and amortization, and impairment of intangible and fixed assets
2) Net debt – borrowings at the end of the period – cash and cash equivalents at the end of the period
3) Net debt / EBITDA – average value of net debt / EBITDA (12-month rolling)
4) EBITDA margin – EBITDA (12-month rolling) / revenue (12-month rolling)
5) Return on equity – profit (12-month rolling) / average value of equity
6) Return on assets – profit (12-month rolling) / average value of assets
7) Return on capital employed – operating profit (12-month rolling) / average value of equity + average value of borrowings
8) Net debt / equity – net debt / equity
Consolidated Statement of Profit or Loss*
for the 3-month period ending 31 March 2017
| 01/01–31/03/2017 | 01/01–31/03/2016 | |
| EUR'000 | EUR'000 | |
| Revenue | 265,816 | 263,533 |
| Other income | 1,638 | 1,470 |
| Raw materials and consumables used | (109,680) | (125,182) |
| Personnel expenses | (25,926) | (24,456) |
| Depreciation, amortisation and impairment of intangible assets and property, plant and equipment | (47,012) | (52,459) |
| Other operating expenses | (18,061) | (15,219) |
| Operating profit | 66,775 | 47,687 |
| Finance income | 310 | 654 |
| Finance costs | (3,058) | (3,756) |
| Profit before tax | 64,027 | 44,585 |
| Income tax | (8,940) | (5,996) |
| Profit for the period | 55,087 | 38,589 |
Consolidated Statement of Financial Position*
| 31/03/2017 | 31/12/2016 | |
| EUR'000 | EUR'000 | |
| ASSETS | ||
| Non–current assets | ||
| Intangible assets and property, plant and equipment | 3,354,762 | 3,370,331 |
| Investment property | 579 | 563 |
| Non–current financial investments | 41 | 41 |
| Investments in held–to–maturity financial assets | 17,022 | 17,034 |
| Other non–current receivables | 986 | 986 |
| TOTAL non–current assets | 3,373,390 | 3,388,955 |
| Current assets | ||
| Inventories | 44,238 | 41,458 |
| Trade receivables and other receivables | 276,878 | 277,184 |
| Derivative financial instruments | 1,700 | 6,134 |
| Investments in held–to–maturity financial assets | – | 3,520 |
| Cash and cash equivalents | 260,020 | 183,980 |
| TOTAL current assets | 582,836 | 512,276 |
| TOTAL ASSETS | 3,956,226 | 3,901,231 |
| EQUITY | ||
| Share capital | 1,288,715 | 1,288,715 |
| Reserves | 934,684 | 937,074 |
| Retained earnings | 240,047 | 185,840 |
| Equity attributable to equity holder of the Parent Company | 2,463,446 | 2,411,629 |
| Non–controlling interests | 8,192 | 7,084 |
| TOTAL equity | 2,471,638 | 2,418,713 |
| LIABILITIES | ||
| Non–current liabilities | ||
| Borrowings | 639,969 | 635,620 |
| Deferred income tax liabilities | 314,227 | 315,759 |
| Provisions | 18,901 | 18,643 |
| Derivative financial instruments | 7,838 | 7,946 |
| Other liabilities and deferred income | 194,076 | 195,407 |
| Total non–current liabilities | 1,175,011 | 1,173,375 |
| Current liabilities | ||
| Trade and other payables | 155,051 | 149,557 |
| Borrowings | 150,613 | 155,946 |
| Derivative financial instruments | 3,913 | 3,640 |
| TOTAL current liabilities | 309,577 | 309,143 |
| TOTAL liabilities | 1,484,588 | 1,482,518 |
| TOTAL EQUITY AND LIABILITIES | 3,956,226 | 3,901,231 |
* - Unaudited Condensed Consolidated Interim Financial Statements. Prepared in accordance with the IFRS as adopted 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 (lease 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).
