The first half year of Lietuvos energija: having improved the financial results, is proceeding along the way of innovation

Date
1 September 2017
Category
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In the first half-year of this year, more transparent and efficient activity by the state-owned enterprise enabled to improve the results. Owing to reduced electricity and gas distribution prices for customers, the company received 7 percent less income during the first half-year as compared to the preceding year, however, earned nearly 33 percent more net profit that will be subsequently paid out to the state budget in dividends. Having cut down operating costs during the first half year, Lietuvos energija retained a high rate of return on equity that reached nearly 10 percent. 
 
“Having modernised the management of the group of energy enterprises, we have built a basis to create a higher value for customers and the shareholder – the State of Lithuania. Owing to the reduction of distribution prices, electricity and gas prices decreased for residents and businesses. Time duration of connecting to the grids have reduced by more than ten days.  New services have been launched to customers that may be ordered in a faster and simpler way. Meanwhile, by further improving the financial results, we demonstrate to local and international investors that we are a reliable and financially strong enterprise worthy of the high credit rating granted to us. We have proved this by especially successful distribution of the issue of EUR 300 million green bonds. Besides, we do not lag behind the world trends and proceed along the way of energy digitalisation and innovation development. During the first half year we announced not only about the launching of the digitalisation programme, but also about the start of the foundation financing the development of energy innovations”, - claims CEO of Lietuvos energija, Dr. Dalius Misiūnas. 
 
Key indicators for the first half year 2017 of Lietuvos energija:
  • The Group’s EBITDA grew by EUR 5,3 million – up to EUR 120,2 EUR (H1 2016 – EUR 114,9 million), mostly due to better EBITDA results in energy production and reduced operating costs of the group.  
  • Operating costs reduced due to greater efficiency by EUR 6,2 million – down to EUR 61,2 million (H1 2016 – EUR 67,4 million);
  • The group’s net comparative profit increased by 33 percent – up to EUR 64,8 million (H1 2016 – EUR 48,8 million);
  • The group’s income due to reduced electricity and gas distribution prices for customers reduced by 7 percent – down to EUR 539 million (H1 2016 – EUR 580 million); 
  • Return on equity (ROE) remained high – 9,9 percent (2016 – 10,3 percent);
  • Investments reduced by 38,4 percent – down to EUR 82,4 million (H1 2016 - EUR 133,7 million).
Full consolidated interim report of the company and the group: https://issuu.com/lietuvosenergija/docs/le_consolidated_inrerim_report_of_t
 

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