Better performance results – lower prices for customers of Lietuvos energija
Lietuvos energija, a state-managed group of energy companies that demonstrated record performance results last year, this year is raising the bar even higher – an even higher profit earned in Q1, 2016, increase in revenues, in addition to enhancing efficiency and decreasing costs. This year has brought for the customers even lower natural gas and electric energy prices.
“We met the year 2016 having improved our operations, with an efficient structure of the Group; such material changes added an impetus to the Company’s performance results. Some additional revenues to our portfolio were generated from the wind farms acquired in Estonia and Lithuania. And we are happy to see that as soon as from 1 July our clients will start realising the benefit of the successful performance of Lietuvos energija: the price of natural gas will drop by 8-15 %, and that of electric energy – by about 5 %”, Dr. Dalius Misiūnas, Chairman of the Board and the Director General of Lietuvos energija, says.
According to the preliminary unaudited data in Q1, 2016 the Company earned EUR 78.1 m in consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), i.e. a 10.6 % increase y-o-y, when the profit was recorded at EUR 70.6 m. In the course of the period, being compared the EBITDA margin increased by 1.4 percentage points up to 23.3 %.
“This year, having accomplished our structural changes and improved the value chain we manage to ensure quality services to our customers at lower costs. Our customers can already feel the changes in the servicing and the provision of services – shorter terms of procedures, we have offered to our customers convenient servicing and payment methods, where they can benefit from a one-stop facility, or at the servicing centre, or electronically or by phone”, Dalius Misiūnas states.
As compared to Q1, 2015, the operating costs of Lietuvos energija Group in the same period this year decreased by 8.4 %, to EUR 34.1 m.
In view of growing national economy, the electricity consumption during Q1 2016 was increasing. During Q1, the revenues of Lietuvos energija Group were reported at EUR 335.1 m (EUR 321.8 m a year ago). The consolidated net profit in the quarter came to EUR 35.5 m, i.e. an increase by 13.8 % from Q1, 2015, when net profit was recorded at EUR 31 m. The net yield during the reporting period reached EUR 38.3 m (EUR 40.4 a year ago).
“When looking prospectively the value created for the customer remains our key priority. We will be further improving the quality of the services we provide, and the Operational Excellence programme launched this year will guide the companies in their commitment to the implementation of improvements in their daily operations, and that will in the long run simplify the processes and enhance our efficiency. We continue trying to spot opportunities to invest into sustainable energy projects, including the renewable energy resources”, Dalius Misiūnas says.
Investment brings about higher efficiency of the capital structure
As of Q1, 2016 the overall investment of Lietuvos energija Group stood at EUR 86.5 m, an increase by 282 % since last year. This increase in the investment record is to a large extent accounted for by the acquisition of the wind farms – i.e. 72 % of the total investment of the Company in the quarter. Excluding the acquisition of the wind farms, the investment was growing by 5.5 %, or EUR 1.2 m.
The investment enhanced the efficiency of the group’s capital structure – the net debt-to-equity ratio increased from 19.3 % to 23.0 % at the end of the reporting period. The current debt level of the Group remains significantly low both from the viewpoint of the generated earnings, and the capital structure; therefore, currently Lietuvos energija maintains sufficient financial capacities to continue investment into development and ensure the provision of the existing services.
The robust financial standing of the Group also allows increasing the dividends payable to the State budget; in 2015 Lietuvos energija disbursed EUR 86 m in dividends. For comparison, in 2014, Lietuvos energija paid EUR 52.6 m in dividends, mostly from all the state-managed companies.
“We met the year 2016 having improved our operations, with an efficient structure of the Group; such material changes added an impetus to the Company’s performance results. Some additional revenues to our portfolio were generated from the wind farms acquired in Estonia and Lithuania. And we are happy to see that as soon as from 1 July our clients will start realising the benefit of the successful performance of Lietuvos energija: the price of natural gas will drop by 8-15 %, and that of electric energy – by about 5 %”, Dr. Dalius Misiūnas, Chairman of the Board and the Director General of Lietuvos energija, says.
According to the preliminary unaudited data in Q1, 2016 the Company earned EUR 78.1 m in consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), i.e. a 10.6 % increase y-o-y, when the profit was recorded at EUR 70.6 m. In the course of the period, being compared the EBITDA margin increased by 1.4 percentage points up to 23.3 %.
“This year, having accomplished our structural changes and improved the value chain we manage to ensure quality services to our customers at lower costs. Our customers can already feel the changes in the servicing and the provision of services – shorter terms of procedures, we have offered to our customers convenient servicing and payment methods, where they can benefit from a one-stop facility, or at the servicing centre, or electronically or by phone”, Dalius Misiūnas states.
As compared to Q1, 2015, the operating costs of Lietuvos energija Group in the same period this year decreased by 8.4 %, to EUR 34.1 m.
In view of growing national economy, the electricity consumption during Q1 2016 was increasing. During Q1, the revenues of Lietuvos energija Group were reported at EUR 335.1 m (EUR 321.8 m a year ago). The consolidated net profit in the quarter came to EUR 35.5 m, i.e. an increase by 13.8 % from Q1, 2015, when net profit was recorded at EUR 31 m. The net yield during the reporting period reached EUR 38.3 m (EUR 40.4 a year ago).
“When looking prospectively the value created for the customer remains our key priority. We will be further improving the quality of the services we provide, and the Operational Excellence programme launched this year will guide the companies in their commitment to the implementation of improvements in their daily operations, and that will in the long run simplify the processes and enhance our efficiency. We continue trying to spot opportunities to invest into sustainable energy projects, including the renewable energy resources”, Dalius Misiūnas says.
Investment brings about higher efficiency of the capital structure
As of Q1, 2016 the overall investment of Lietuvos energija Group stood at EUR 86.5 m, an increase by 282 % since last year. This increase in the investment record is to a large extent accounted for by the acquisition of the wind farms – i.e. 72 % of the total investment of the Company in the quarter. Excluding the acquisition of the wind farms, the investment was growing by 5.5 %, or EUR 1.2 m.
The investment enhanced the efficiency of the group’s capital structure – the net debt-to-equity ratio increased from 19.3 % to 23.0 % at the end of the reporting period. The current debt level of the Group remains significantly low both from the viewpoint of the generated earnings, and the capital structure; therefore, currently Lietuvos energija maintains sufficient financial capacities to continue investment into development and ensure the provision of the existing services.
The robust financial standing of the Group also allows increasing the dividends payable to the State budget; in 2015 Lietuvos energija disbursed EUR 86 m in dividends. For comparison, in 2014, Lietuvos energija paid EUR 52.6 m in dividends, mostly from all the state-managed companies.
