Halfway to its strategy targets, Lietuvos energija reports revenues above EUR 1 billion

In 2015, a State-managed group of companies Lietuvos energija successfully completed the most important project of the year – improved its value chain and thus ensured a higher quality of services and customer servicing. The Group managed to strengthen its position in the changing market, and is further enhancing its operational efficiency, implementing its major development projects thus ensuring lower energy and services prices for Lithuanian businesses and residents.

'For us the year 2015 was the year of significant changes. First of all, we managed to clearly identify and categorise the activities of the Group: we established ESO, EnePro, segregated and strengthened our production and commercial activities – so now we are able to focus on enhancing their efficiency. Concentration of customer servicing under the Gilė single window system defined a new service quality standard. Liquefied natural gas is becoming a competitive alternative and is winning an increasing market share. We advanced significantly in our cogeneration power plant projects, were further expanding in the area of renewable energy and offered some efficient energy consumption solutions. In our daily work we focus our efforts on strengthening the Group, developing our business and enhancing efficiency in order to generate value for our customers and the State', says Dr. Dalius Misiūnas, Chairman of the Board and the Director General of Lietuvos energija.

During 2015, Lietuvos energija saved 9 million euro by cutting its operational costs; thus the Company's comparative costs accounted for EUR 110 million, or 7 % down from 2014. In addition, the more efficient operations, increasing sales and the development into new sectors were increasing the Company's income that climbed over a bar of 1 billion, to be recorded at EUR 1.096 billion, i.e. 12.6 % more than last year (EUR 0.973 billion).
'Our active negotiations with Statoil yielded some very important results – lower expenses of Lithuania for natural gas, and we are able to offer a competitive alternative to Lithuanian and Baltic States consumers. We have become an active trader in the Baltic States – it is apparent that the Klaipėda liquefied natural gas terminal will be increasingly loaded, and the consumers will be offered even more favourable prices as a result. After the power links with Sweden and Poland become operational, the year 2016 will become a turning point also in the electric energy market', says Dalius Misiūnas.

Within 2015, the Group centralised its accounting, public procurement, human resources administration operations, completed the optimisation of its immovable property and vehicle fleet, achieved higher efficiency of the corporate IT and other servicing functions. Additional proceeds were generated from enhanced sales of gas – in 2015, the Group sold 1.419 bn m3 of natural gas, i.e. nearly twice as much as last year (0.799 bn m3).

 

In 2015, the unaudited consolidated EBITDA of Lietuvos energija was EUR 221.6 m, i.e. up by 2.2 % from 2014, when EBITDA was reported at EUR 216.9 m. In 2015, the Group's benchmark net profit was reported at EUR 115.6 m, and EUR 118.2 m a year ago. Last year the Group's return on equity was recorded on 8.9 %.

'Since 2013, when we launched our new strategy and set a target to double the Group's value by 2020, we have already fulfilled our plan by 41 %. This outstanding profitability of the Company's operations makes it possible to pay steady dividends to the State's budget. In addition, we see some further possibilities to increase our profitability, for instance, generating income through our new development projects, enhancing efficiency of the current activities, and a further optimisation of the structure of our capital. Currently the leverage remains fairly low, at 19.4 %, and we seek to ensure that our capital is used in the most efficient way' says Dalius Misiūnas.
Within the reporting period the Group's unaudited net profit was reported at EUR 40.1 m, i.e. by EUR 320.1 m more than the respective figure of 2014 (-EUR 280 m). The factors that affected the net result of 2014 included the revaluation of the assets of AB LESTO, and the discount offered to AB Lietuvos dujos.

During 2015, the Group's investment accounted for EUR 173.7 m, i.e. 27.9 % up from 2014. In the course of the year the Company most increased investment into maintaining its distribution networks (up by EUR 21.1 m), construction of the gas systems (up by EUR 7.3 m), reconstruction of the gas systems (up by EUR 6 m), as well as increasing investment in other sectors (total EUR 22 bn).