Lietuvos Energijos Gamyba, AB identification code 302648707, registered office placed at Elektrinės str. 21, LT-26108 Elektrėnai, Republic of Lithuania (hereinafter referred to as the Company). The total number of registered ordinary shares issued by the Company is 648 002 629; ISIN code LT0000128571.
On 12 April 2019, the Ordinary General Meeting of Shareholders of the Company approved the Annual Report of the Company for the year 2018 and the Annual Financial Statements of the Company for the year 2018, audited by PricewaterhouseCoopers, UAB, the Company‘s auditor.
Information on the operational results of the Company for the year 2018:
LIETUVOS ENERGIJOS GAMYBA FINISHED 2018 WITH GOOD FINANCIAL RESULTS AND A NEW STRATEGY
Despite the unfavourable natural conditions and market unpredictability, last year Lietuvos Energijos Gamyba, a part of Lietuvos Energija group, managed to maintain decent financial performance indicators and provide reliable power regulation and reserve services.
The sales income of Lietuvos Energijos Gamyba decreased by 14.5% and amounted to EUR 125.9 million due to the lower production volume and income from the regulated activity of Elektrėnai Complex. If compared to 2017, the adjusted EBITDA margin remained stable (34.4%) while profitability ratios, such as the margin of the operating profit, gross profit margin, net profit margin, and the return on equity have been significantly better due to higher sales revenue in Kaunas A. Brazauskas‘ HPP, improved commercial results in Kruonis PSHP, and effective management of the repair and maintenance expenses in Elektrėnai Complex. Lower amortization and depreciation costs as well as positive revaluation of the emission allowances also added up to the increased profitability. The net profit of the Company reached EUR 29.6 million – 44.5% more if compared to 2017.
„Last year, our performance was significantly affected by natural conditions and planned maintenance works. Compared to 2017, electricity production in Kaunas HPP has shrunk by one-fourth due to and arid summer. One of the units in Kruonis PSHP has been unavailable for half a year because of heavy maintenance works. In total, the amount of electricity produced in our plants decreased by one-fifth if compared to the previous year. However, due to favourable wholesale electricity prices in the power exchange market, our financial performance results remained positive“, explains Rimgaudas Kalvaitis, CEO at Lietuvos Energijos Gamyba.
According to him, 2018 has also been marked by an increasing scope of the ancillary services – the demand for power regulation services nearly doubled, requests for the secondary reserve have intensified. The company also successfully provided tertiary and strategic reserve services. “Providing effective and reliable ancillary services remains among our top priorities for the upcoming year as well”, comments R. Kalvaitis.
In 2018, a total of 0.88 TWh of electricity has been generated and sold in the power plants owned by Lietuvos Energijos Gamyba – 23% less if compared to 2017 (1,15 TWh).
At the end of 2018, Lietuvos Energijos Gamyba updated its strategy, adopting a document that reflects the ambitious strategy of Lietuvos Energija group LE 2030, announced last spring. „Our mission and vision remain the same, with strategic generation laid down as the main priority of Lietuvos Energijos Gamyba. Maintaining, modernising and developing sufficient and reliable local power generation capabilities, we primarily aim to contribute to successful synchronization of the Baltic countries with the continental European network by 2025. Group‘s investments in both existing and new power generation facilities should reach EUR 600 million in the next 12 years“, – says R. Kalvaitis.
The updated Company‘s strategy foresees that Lietuvos Energijos Gamyba will also significantly contribute to the implementation of the overall Group‘s vision by developing innovative technologies and green energy generation capabilities. This is to be done by exploiting the Company’s owned hydropower capabilities in Kaunas and Kruonis, providing maintenance services for the RES power plants, and developing innovative solutions such as pilot projects of solar energy plants and energy storage systems within the available infrastructure. The Company continues preparation for the Kruonis PSHP modernisation project, considering possibilities to install a fifth hydro-unit. Last year, the project received partial funding from the European Commission for further infrastructure research and feasibility study.
Key interim Lietuvos Energijos Gamyba performance indicators for 2018:
Berta Jasiukėnaitė, Public relations project manager, +370 694 60771, berta.jasiukenaite@le.lt
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