Successful Results of Lietuvos Energija were ensured by cutting costs and diversified activities
The state-owned group of energy companies Lietuvos Energija maintained moderate growth of financial results in the first three quarters of the current year. The decrease of energy and gas transmission and distribution prices to the clients has caused a 2.5 per cent decline in the revenue of the group. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), however, grew by 5 per cent (to EUR 166 million) thanks to the further decrease of operation costs, enhanced efficiency and diversification of the operating revenues of the group. The Return on Equity (ROE) rate of Lietuvos energija has remained high and amounted to 9.3 per cent in this period.
“Lietuvos Energija continues to demonstrate balanced growth. The decision to diversify and expand business activities already gave results – the adjusted EBITDA grew regardless of the decreased power and gas transmission and distribution prices. This was compensated from other activities, i.e. generation from renewable energy sources and enhanced gas and power trade portfolio. The refinement of value chain continued to create conditions for cost reduction and efficiency improvement by diverting resources to the higher quality services, the reduction of duration of grid connection and the development of new services. All this allows us to create more value to our customers and ensure return to the state at the same time”, says Mindaugas Keizeris, CEO and Chairman of the Board of Lietuvos Energija.
Key indicators of Lietuvos Energija Group for Q I-III of 2017:
- Due to decreased energy and gas transmission and distribution prices to the clients, the revenue of the group dropped by 2.5 per cent - to EUR 783 million (EUR 804 million in 2016 Q I-III);
- Thanks to efficiency improvement, operation costs decreased by 5 per cent, i.e. EUR 5 million - to EUR 93.7 million (EUR 98.7 million in 2016 Q I-III);
- Adjusted (comparative) EBITDA of the group increased by 5 per cent, i.e. EUR 7.8 million - to EUR 166 million (EUR 158 million in 2016 Q I-III), mostly due to the better results of power generation EBITDA and decreased operation costs;
- Return on Equity (ROE) remained high and amounted to 9.3 per cent (10.3 per cent in 2016);
- Net profit of the group amounted to EUR 77.1 million, i.e. EUR 18.6 million less than a year ago, but the adjusted (comparative) net profit increased by 35.4 per cent - to EUR 91.3 million (EUR 67.4 million in 2016 Q I-III);
- Investments decreased by 14 per cent (to EUR 152.2 million (EUR 177.7 million in 2016 Q I-III). The decline in investments was due to the acquisition of wind farms in 2016 Q I. Except for the factor, investments increased by 32 per cent in comparison with 2016 Q I-III. Energy distribution network maintenance and development accounted for most of the investments (48 per cent and 23 per cent accordingly).
Full consolidated interim report of the company and the group can be found HERE.
