Elektrėnai, Lithuania, 2018-02-28 08:55 CET (GLOBE NEWSWIRE) -- Lietuvos Energijos Gamyba, AB, legal entity code 302648707, registered head office address Elektrinės Str. 21, Elektrėnai (hereinafter referred to as the Company). The total number of registered ordinary shares issued by the Company is 635 083 615, ISIN code – LT0000128571.
RESULTS OF LIETUVOS ENERGIJOS GAMYBA OF 2017: MORE ELECTRICITY FROM WATER AND SUSTAINABLE PROFITABILITY INDICATORS
Financial indicators of Lietuvos Energijos Gamyba of 2017 reflect successful efforts of the electricity producer, which is a part of Lietuvos Energija Group, to adapt to the changing market and to efficiently manage operating expenses. The Company managed achieving sustainable profitability indicators: the adjusted EBITDA of 2017 reached EUR 53.7 million, and adjusted EBITDA margin was 35.9 percent (36.8 percent in 2016)
“The results of 2017 were significantly affected by the volume of electric power generated and sold in Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant, which increased by more than a quarter - last year was record both in terms of the amount of water and the generated electricity. Effectively exploiting market opportunities and being more actively engaged in intraday trading on the market, we also produced somewhat more electricity in the Kruonis Pumped Storage Power Plant compared to 2016. Changed market conditions resulted in lower electricity production in Elektrėnai Complex only. In 2017, we have ensured high availability and reliable operation of all power plants, responding to the needs of the market and the transmission system operator. Reliable contribution to stable operation of the energy system and its security is one of our most important goals”, Eglė Čiužaitė, Chair of the Board and Chief Executive Officer of Lietuvos Energijos Gamyba commented the performance and the results of the power plants of the Company.
A total of 1.147 TWh of electricity was generated in the power plants owned by the Company in 2017, which is 16 percent less than in 2016 (1.371 TWh). Elektrėnai Complex generated 0.139 TWh of electricity, or 71.8 percent less than in 2016 (0.491 TWh in 2016), Kruonis PSP - 0.549 TWh or 6 percent more than in 2016 (0.517 TWh in 2016), Kaunas A. Brazauskas’ HPP - 0.459 TWh or 26 percent more electricity than in 2016 (0.363 TWh in 2016).
Key indicators of Lietuvos Energijos Gamyba of 2017:
- Despite the decreased electricity generation in Elektrėnai complex, the Company’s sales revenue remained fairly stable - in 2017, it totalled EUR 147.2 million and was only 3 percent lower than in 2016 (EUR 151.8 million). The Company’s revenue totalled EUR 149.8 million in 2017 and was 13 percent lower than in 2016 (EUR 172.9 million). The main factor having determined the decline was the positive result of the sales of a part of business accounted for in 2016.
- Operating expenses of the Company decreased by 14 percent and were EUR 20.0 million in 2017 (compared to EUR 23.1 million in 2016). Excluding impairment of an amount receivable reflected in expenses for 2016 in relation to the shares of Kauno Energetikos Remontas UAB and NT Valdos UAB, operating expenses would be slightly higher than in 2016 due to higher expenses of dismantling project.
- The adjusted (comparative) EBITDA* of the Company totalled EUR 53.7 million in 2017 and were 16 percent lower than in 2016 (EUR 63.7 million). This indicator mainly changed due to increased costs of works of dismantling of Units 5 and 6 of Elektrėnai Complex started in 2017 and decreased sales of activated secondary power reserve of Kruonis PSP in 2017 compared to 2016, also due to lower EBITDA of regulated activity of Elektrėnai Complex.
- Net profit of the Company was EUR 20.5 million in 2017, i.e. 44 percent lower than in 2016 (EUR 40.0 million). The Company’s profit decreased as a result of the impact of one-time factors in 2017: the positive result of the sales of a part of business (EUR 15.4 million) was accounted for in 2016, and the decline in the value of assets of Units 7 and 8 of Elektrėnai complex was accounted for in 2017 (negative effect of EUR 31.4 million on profit before tax).
- The Company’s investment in non-current tangible and intangible assets totalled EUR 1.9 million in 2017 and EUR 3.3 million in 2016.
*The Company’s EBITDA results are reported after the adjustments made by management by eliminating the impact of one-off factors. These adjustments are made aiming to disclose the results of the Company’s operating activities after the elimination of the impact of non-typical, one-off factors or factors that are not directly related to the current reporting period. All adjustments made by management are disclosed in the Company’s interim and annual reports.
28 February, 2018 at 4:00 pm the Chief Executive Officer of Lietuvos Energijos Gamyba will introduce the Company’s financial results for the year 2017 and will answer the participant questions in the Investor Conference Webinar. To join the webinar, please follow the link.
Valentas Neviera, Head of Communication Division, tel. +370 670 25997, e-mail. valentas.neviera@le.lt
