AB Klaipėdos Nafta preliminary revenue for the March 2020
The preliminary sales revenue of the KN (AB Klaipėdos nafta, further the Company) LNG terminals for March 2020 comprised EUR 3.7 million (during the same month of 2019 – EUR 5.6 million). LNG terminals’ revenue consists of the regasification tariff fixed part (for booked annual capacities), variable part for amount of regasified LNG, reloading revenue from regulated activities and other consultations. 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 terminals for the first three months of 2020 decreased by 32.6 per cent due to the reduction of security supplement of Klaipėda LNG terminal by 42 per cent from the 1st January of 2020.
The preliminary sales revenue of the Company’s oil terminals for the March 2020 comprised EUR 3.4 million and is higher by EUR 0.8 million or by 30.8 per cent compared to March of 2019. The preliminary sales revenue is higher due to increase of transshipment quantities of oil products by 49.0 per cent. The preliminary sales revenue of the Company’s oil terminals for the first three months of 2020 comprised EUR 7.5 million, i.e. less by 8.5 per cent due to the decrease of transshipment quantities of oil products, compared to the same period of 2019.
Total preliminary sales revenue of the Company for the January-March 2020 amount to EUR 19.7 million and is lower by 25.1 per cent compared to the same period of 2019 - EUR 26.3 million.
Preliminary revenue of the Company, EUR million:
| March | January - March | |||||
| 2020 | 2019 | Change, % | 2020 | 2019 | Change, % | |
| Oil terminals activity | 3.4 | 2.6 | 30.8% | 7.5 | 8.2 | -8.5% |
| LNG terminals activity | 3.7 | 5.6 | -33.9% | 12.2 | 18.1 | -32.6% |
| Total | 7.1 | 8.2 | -13.4% | 19.7 | 26.3 | -25.1% |
Comment by the Company management:
Transhipment of crude oil at KN oil terminal in Klaipėda in March was intense and it positively influenced sales revenue of the Company’s oil terminals, which increased by 30.8 per cent, if compared to March 2019. As for the trend of January-March 2020, sales revenue of KN oil terminals were influenced both by the historically low oil prices and unfavourable oil refining margins, which influenced oil production volumes and respectively had a negative impact on oil transit.
Levels of LNG regasification at Klaipėda LNG terminal remains high. Following from that, the main factor, which influenced revenue of Klaipėda LNG terminal in January-March of 2020, was KN decisions, adopted in 2019, to optimize Klaipėda LNG terminal costs and reduce the cost of LNG terminal infrastructure for consumers, starting from 2020 annually.
Jonas Lenkšas, Chief Financial Officer,
