AB Klaipėdos nafta preliminary revenue for the June 2020
AB Klaipėdos nafta (further the Company) reviewed operating segments since the beginning of the second quarter of 2020 and presents revenue disclosures accordingly. The following operating segments of the Company are:
- Oil terminals activity, that includes Klaipėda oil terminal and Subačius oil terminal,
- Regulated LNG activity in Klaipėda and
- Commercial LNG activity, that includes small-scale LNG reloading station in Klaipėda and Business development projects.
The preliminary sales revenue of the Company’s oil terminals for the June 2020 comprised EUR 2.1 million and is lower by EUR 0.6 million or by 22.2 per cent compared to June of 2019. The preliminary sales revenue is lower due to decrease of transhipment quantities of oil products, compared to the same period of 2019. The preliminary sales revenue of the Company’s oil terminals for the first six months of 2020 comprised EUR 15.9 million, i.e. higher by 1.9 per cent, compared to the same period of 2019.
The preliminary sales revenue of the Company LNG terminal for June 2020 comprised EUR 3.6 million (during the same month of 2019 – EUR 5.9 million). LNG terminal revenue consists of the regasification tariff fixed part (for booked annual capacities), variable part for amount of regasified LNG and reloading revenue from regulated activities. The level of Klaipėda LNG terminal revenue (for booked annual capacities) does not depend on regasification volume. Revenue is confirmed by the National Energy Regulatory Council (NERC) based on the approved methodology of State regulated prices in the natural gas sector and is calculated for the whole upcoming year. The preliminary sales revenue of LNG terminal for the first six months of 2020 decreased by 37.7 per cent due to the reduction of security supplement of Klaipėda LNG terminal from the 1st January of 2020.
The preliminary sales revenue of the Company’s Commercial LNG activity for the June 2020 comprised EUR 0.2 million. If compared to the respective period last year, the preliminary sales revenue is higher due to Business development projects consultation revenue and increase of small-scale LNG station revenue. The preliminary sales revenue of the Company’s Commercial LNG activity for the first six months of 2020 comprised EUR 1.4 million.
Total preliminary sales revenue of the Company for the January-June 2020 amount to EUR 38.0 million and is lower by 25.6 per cent compared to the same period of 2019 - EUR 51.1 million.
Preliminary revenue of the Company, EUR million:
| June | January - June | |||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | |
| Oil terminals activity | 2.1 | 2.7 | -22.2% | 15.9 | 15.6 | 1.9% |
| LNG terminal activity | 3.6 | 5.9 | -39.0% | 22.1 | 35.5 | -37.7% |
| Commercial LNG activity | 0.2 | 0.0 | 100.0% | 1.4 | 0.1 | 13 times |
| Total | 5.9 | 8.6 | -31.4% | 38.0 | 51.1 | -25.6% |
Comment by the Company management:
In June there still has been a lot of uncertainty, which has been influenced by COVID-19 impact on the economies, which also affects results of KN. Our clients seek to preserve their profitability, wherefore the demand for the oil products storage has increased, however, it negatively influenced transhipment quantities of oil products. Despite the unfavourable circumstances, KN managed to secure higher preliminary sales revenue of the Company’s oil terminals for the first six months of 2020 compared to the same period of 2019. Furthermore, we expect that our long-term partners in Belarus will meet their annual commitments to tranship agreed quantities of petroleum products and we maintain the dialogue on cooperation for the next contractual period.
The main factor, which influenced the total Company‘s revenue result in January-June, 2020, was lower revenue of Klaipėda LNG terminal, following from the KN decisions, adopted in 2019, to optimize Klaipėda LNG terminal costs and reduce the cost of LNG terminal infrastructure for consumers, starting from 2020.
Jonas Lenkšas, Chief Financial Officer,
