Lietuvos Energija is half-way towards the achievement of its strategic goal

Having previously centralized and optimized its activities, Lietuvos Energija Group reduced its expenses directly related to the price of electricity, gas supply and other services by 10 percent in Half 1 of this year. At the same time, performance results of the Group improved. The state-owned group continues investing in strategic development projects and optimizing processes creating value. This has created preconditions for sustainable increase of benefits created for customers.  

 

Compared to Half 1 of 2014, operating expenses of Lietuvos Energija Group decreased by 10.1 percent in Half 1 of 2015, namely, from EUR 58 million to EUR 52.1 million. This reduction was effected by centralized accounting, public procurement and personnel administration activities as well as more efficient performance of real estate, vehicle fleet, IT and other service functions.

 

“The previously conducted works in the centralization and optimization of activities have rendered tangible results to the Group, while customers paying less for electricity and gas received the greatest benefit. We yet have measures for the reduction of expenses: the value chain refinement programme of the main activities, namely, the consolidation of energy production, distribution, supply, customer service and contracting, providing for the merger of companies will allow eliminating three legal entities and facilitating the Group structure. We also plan implementing a single integrated business management system within the Group, and we have made the use of office premises more efficient”- said Dr. Dalius Misiūnas, Chairman of the Board and CEO of Lietuvos Energija.  

 

In Q2, Lietuvos Energija Group simplified its structure - it took over from its subsidiaries companies under their control (Elektros Tinklo Paslaugos, Energijos Tiekimas, Kauno Energetikos Remontas and NT Valdos). The flatter structure of the Group allows Group companies to focus on their core activities, while the competence of the management of Group companies is efficiently concentrated in Lietuvos Energija company.

 

“We have focused on the increase of value in the Group, thus besides the constant reduction of expenses and control, we have invoked development projects for the growth of value, which will create value to customers in the long run. We see potential in wind energy, also, we have developed the projects of cogeneration power plants in Vilnius and Kaunas and expanded the liquefied natural gas market”- said D. Misiūnas.

 

Lietuvos Energija, planning to double its value by 2020 compared to 2012, has already achieved 50 percent of this strategic goal.

 

 

Comparative profit of the Group (excluding one-off effects) totalled EUR 61.8 million in Half 1 of the year, which is 4.8 percent more than in the same period of last year. With increasing profit, comparative revenue of the Group (excluding gas transmission and distribution activity-related revenue) decreased by 1.7 percent as a result of lower tariffs applied. The reduction of revenue was determined by electricity transmission prices decreased since the beginning of the year.

 

In January - June 2015, recorded net profit of the Group (including one-off effects) totalled EUR 30.3 million compared to EUR 95.4 million in the same period of last year. Net profit was affected by one-off factors - additional expenses related to the gas price discount for household and non-household gas customers applied in 2015 (- EUR 24.6 million), also, revaluation of assets and the transfer of costs from previous periods (- EUR 6.9 million), while the profit of Half 1 of last year was increased by one-off positive effects of EUR 59.5 million related to the acquisition of control of Lietuvos Dujos.  

 

Compared to the same period of last year, consolidated revenue of the Group increased by 36.1 percent in Half 1 of 2025 to EUR 548.3 million. The increase in revenue was determined by included new gas distribution and transmission activity.

 

Earnings before interest, taxes, depreciation and amortization of the Group amounted to EUR 117.3 million, which is 10.1 percent more than in Half 1 of 2014 (EUR 106.5 million).

 

Investments of Lietuvos Energija Group totalled EUR 61 million in Half 1, which is 35.3 percent more than in January-June of 2014 (EUR 45.1 million). The major share of investments, namely, 68 percent, was allocated for the development and support of the electricity distribution network.