Lietuvos Energijos Gamyba, AB, audited interim financial information for the first six months of 2018

Lietuvos Energijos Gamyba, AB, company code 302648707, registered office at Elektrinės st. 21, Elektrėnai (hereinafter referred to as the Company). The total number of registered ordinary shares issued by the Company is 648 002 629, ISIN code – LT0000128571.

The Company presents audited finansial indicators for January-June period of 2018, interim report and interim financial statements may be found in the attached document.

RESULTS OF LIETUVOS ENERGIJOS GAMYBA FOR 6 MONTHS OF 2018 –

CHANGING NATURAL CONDITIONS, EXCEPTIONAL EVENTS AND STABLE FINANCIAL INDICATORS

Lietuvos Energijos Gamyba, which is a part of Lietuvos Energija Group, generated less electricity in the first half of 2018 than in the same period of last year. However, rather high wholesale electricity prices formed on the exchange, thus the income and profitability indicators of the Company remained relatively stable at the end.

“Conditions for the generation in Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant were difficult during this period as a result of changing weather, while major repair works were carried out on the hydro unit in Kruonis Pumped Storage Power Plant for the first time in the history of the power plant. The Elektrėnai Complex reliably ensures tertiary and strategic reserve, but electricity was commercially produced here for a couple of days only. All this led to decreased sales of electricity generated in our power plants in the 6 months of 2018 compared to the same period of 2017”, – Eglė Čiužaitė, the Chair of the Board and the CEO of Lietuvos Energijos Gamyba commented the activities of the Company. 

In January–February 2018, large water amounts accumulated in the Nemunas river, which improved conditions of the production at the Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant, however, compared to March 2017, the production of electricity in the power plant decreased significantly due to very cold weather. Having slightly increased in April, the production in this power plant started decreasing in May and June as a result of hot and dry weather. In the 6 months of 2018, the Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant generated a total of 4 percent less of electricity compared to the 6 months of 2017 (232 GWh and 241 GWh, respectively). 

As a result of the planned repair of the second unit of the Kruonis PSPP having started in February and lasted for the entire subsequent reporting period (end of July), 11% less electricity produced in this power plant was sold in the 6 months of 2018 compared to 6 months of 2017 (204 GWh and 228 GWh, respectively).

Suitable conditions for the production of the combined cycle unit in the Elektrėnai Complex formed in March only, when cold weather gripped the entire Scandinavia and the Baltic States leading to increased electricity consumption and a significantly decreased production in wind power plants. Then, 8 GWh of electricity was generated in a couple of days (compared to 79 GWh generated in the 6 months of 2017).

A total of 444 GWh of electricity was produced and sold in the power plants owned by the Company in the 6 months of 2018, which is 19 percent less than in the 6 months of 2017 (549 GWh). 

“Even though our production levels decreased, the first half of 2018 was full of exceptional events: works of major repairs of the hydro unit of Kruonis PSPP were carried out for the first time in the history of the power plant; in early spring, we smoothly took over the Vilnius Third Combined Heat and Power Plant, which became our fourth managed power plant. Currently, we are assessing the possible alternatives of its use in the future”, – said the CEO of the Company E. Čiužaitė. 

Key performance indicators of Lietuvos Energijos Gamyba in the 6 months of 2018:

• Sales income of the Company in the 6 months of 2018 totaled EUR 60.0 million and was 5.2 percent lower than sales income in the 6 months of 2017 (EUR 63.3 million). In the 6 months of 2018, the Company’s income totaled EUR 61.2 million and was 4.1 percent lower than in the 6 months of 2017 (EUR 63.8 million). With the wholesale electricity price increased in the market, the income earned in the 6 months of 2018 in Kaunas A. Brazauskas’ HPP and Kruonis PSPP partially compensated the sales income, which the Company lost due to decreased income from the regulated activity of Elektrėnai Complex compared to the last year.
• The Company managed to reduce its operation and maintenance expenses: in the 6 months of 2018, the Company incurred EUR 8.5 million in expenses, which is 2.9 percent less than in the 6 months of 2017 (EUR 8.8 million).
• The adjusted (comparative) EBITDA* of the Company in the 6 months of 2018 totaled EUR 27.1 million and was the same as in the 6 months of 2017. This was determined by higher sales revenue in Kaunas A. Brazauskas’ HPP and the result of effective activities and the services provided in the Kruonis PSPP.
• Net profit of the Company totaled almost EUR 21.9 million in the 6 months of 2018 and was almost twice higher than net profit in the 6 months of 2017 (EUR 10.3 million). Net profit of the Company increased as a result of lower costs of amortization and depreciation and the gains from revaluation of emissions allowances.
• In the 6 months of 2018, the Company invested EUR 3.3 million in non-current tangible and intangible assets. The majority of this amount was designated for major repairs of the Kruonis PSPP. Investment of EUR 0.6 million was made in the 6 months of 2017.

* The Company’s EBITDA results are presented after adjustments made by the management, eliminating the income of one-time factors. These adjustments are aimed at disclosing the results of ordinary activities of the Company, without atypical, one-time factors or factors that are not directly related to the current operating period. All the adjustments made by the management are disclosed in interim and annual reports of the Company.

For more information:

Aušra Mačerauskė, Lietuvos Energijos Gamyba, AB

Tel. , e-mail:

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