Improved performance drives Lietuvos Energija Group to excellent results
The state-controlled energy group Lietuvos Energija cut operating costs and considerably improved profitability of its commercial operations and posted EBITDA (earnings before interest, taxes, depreciation and amortisation) of LTL 538.4 million in the first nine months of 2013, up by 45.1% year-on-year. Net profit reached LTL 125.2 million.
Revenue of the Group rose by LTL 110.7 million (5.5%) to LTL 2,139.1 million in the first nine months of 2013. The EBITDA margin improved to 25.2% (up from 18.3% year-on-year). Operating expenses were LTL 318.7 million and went down by LTL 8.4 million, or 2.6%, compared to the same period last year. These changes were the result of an increase in efficiency of regulated activities and reduced costs of the Visaginas Nuclear Power Plant project. Operating expenses were slightly higher in the third quarter due to scheduled repairs and maintenance.
“The indicators for the three quarters reflect that our performance optimisation efforts have yielded positive results. We will continue on the same track and carry on our corporate governance reform within the Group launched in the first half of the year“, said Dr. Dalius Misiūnas, CEO and Chairman of the Board of the parent company Lietuvos Energija, UAB.
Tense market situation
In the third quarter, it became very evident how important the combined-cycle unit and reserve power plant operated by the Group was for the national electricity system. Weaker electricity imports and ongoing repairs caused a shortage of electricity, drove prices up and the Lietuvos Energija Group ensured the generation and supply of supported electricity to households by maximising the efficient use of available resources.
In the first nine months of 2013, the Group produced 1.55 TWh of electricity.
“The situation escalated in October so the actual seasonal effect of the electricity market on the Group’s results will only be clear after the annual indicators are aggregated“, said Misiūnas.
High qualitative indicators of the distribution network were improved further despite the fractious situation on the electricity supply market.
Without the force majeure adjustment, the System Average Interruption Duration Index (SAIDI) per customer stood at 109.56 minutes and the System Average Interruption Frequency Index (SAIFI) at 1.06 times in the reference period. The relevant SAIDI and SAIFI indicators in the same period in 2012 were 125.02 minutes and 1.29 times respectively.
In the first nine months of 2013, the Group distributed 6.07 TWh of electric energy to customers via its mediumto low-voltage grid. The public and guaranteed supply of the Lietuvos Energija Group made up 2.27 TWh in the reference period.
Governance reform continues
The Lietuvos Energija Group completed the first phase of the corporate governance reform involving the setting-up of governing and supervisory bodies: the boards and supervisory boards of Lietuvos Energija, LESTO and Lietuvos Energijos Gamyba. The committees of the Supervisory Board of Lietuvos Energija were also formed.
Currently, the reform continues involving the analysis of alternative options, adoption and implementation of decisions on key corporate finance, legal, strategic, risk management, audit, communication, project and process management, procurement and other operations within the Group.
The outcome of the policy-making exercise will be the general principles and standards applicable to individual areas of activity of all companies within the Group. Work continues on the Group’s operational strategy for 2014–2020 which will outline the general operational roadmap of the entire Group, key programmes and objectives as well as target indicators.
1 SAIDI – System Average Interruption Duration Index
2 SAIFI – System Average Interruption Frequency Index
2 SAIFI – System Average Interruption Frequency Index
About Lietuvos Energija Group
The Lietuvos Energija Group is a state-controlled company group operating in power and heat generation and supply, electricity trade and distribution, natural gas trade and supply as well as maintenance and development of the electricity sector.
The Group companies provide services to more than 1.5 million customers across Lithuania, offer electricity supply services abroad, control and operate key Lithuanian power plants ensuring the security of energy supply, nation-wide distribution network, implement development projects of strategic importance, pursue the objectives of the National Energy Strategy.
The Group is comprised of the following companies: Lietuvos Energijos Gamyba, AB, electricity and heat generation and trading company, AB LESTO, electricity distribution network operator, and their subsidiaries as well as UAB LIGAS (since 15 October 2013) and UAB VAE SPB.
About Lietuvos Energija, UAB
Parent company Lietuvos Energija, UAB is responsible for transparent management and coordination of activities of the Group, improving efficiency in order to provide customers with competitive services and to ensure increasing of the long-term value for the shareholders in a socially responsible way.
The Company analyses the activities of the Group, represents the Group, exercises rights and duties of the shareholder, sets operating guidelines and rules, and coordinates the activities in the ¬fields of power generation, commerce, fi¬nance, law, strategy and development, human resources, risk management, audit, technologies, communication, etc.
