AB Klaipėdos nafta interim unaudited financial information regarding the nine months of 2020
AB Klaipėdos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for the nine months ended 30 September 2020.
- Revenue for the 9 months of 2020 of the Group and the Company comprise EUR 60.8 million and EUR 58.5 million respectively and is lower by 21.2% and 24.2% compared to the same period of 2019 (EUR 77.2 million and EUR 77.2 million respectively).
- Net profit of the Group and the Company for the 9 months of 2020 amounts to EUR 24.2 million and EUR 23.6 million respectively and is 11.5 times and 11.3 times higher compared to the first 9 months of 2019 (loss of EUR 2.3 million and EUR 2.3 million respectively).
- Net profit adjusted of the Group and the Company for the 9 months of 2020 amounts to EUR 9.7 million and EUR 9.1 million respectively and is higher by 7.8% and 1% compared to the first 9 months of 2019 (EUR 9 million and EUR 9 million respectively).
- EBITDA for the 9 months of 2020 of the Group and the Company amounts to EUR 51.2 million and EUR 50.5 million respectively and is higher by 25.5% and 23.8% compared to the same period of 2019 (EUR 40.8 million and EUR 40.8 million respectively).
- EBITDA adjusted for the 9 months of 2020 of the Group and the Company amounts to EUR 36.8 million and EUR 36.0 million respectively and is lower by 29.5% and 31.0% compared to the same period of 2019 (EUR 52.2 million and EUR 52.2 million respectively).
Main finance rations of the Group comparing 9 months of 2020 and 2019:
| 9 months 2020 financial results | Change, compared to 9 months 2019 | 9 months 2020 results (adjusted) (without unrealised exchange rates impact) | Change, compared to 9 months 2019 | |
| Revenue | 60.8 million Eur | -21.2% | 60.8 million Eur | -21.2% |
| Net profit | 24.2 million Eur | 11.5 times | 9.7 million Eur | 7.8% |
| EBITDA | 51.2 million Eur | 25.5% | 36.8 million Eur | -29.5% |
Management comment:
During 9 months of 2020, the same as during 2019, the Group‘s and the Company‘s net profit was significantly affected by fluctuations of unrealized currency exchange rates. The unrealized impact of exchange rates arose from the 1st January of 2019 under the requirements of IFRS 16 “Lease”, which indicated the Company to capitalize finance lease obligations and the major part of them is denominated in US dollars. Whereas all US dollar denominated lease liabilities relate to LNG terminal, the effect of unrealized exchange rate are reflected in the regulated segment. Revenue of the Group for the first nine months of 2020 compared to the same period of 2019 is lower mainly due to the reduction of LNG security supplement from the 1st January 2020.
LNG regasification at Klaipėda LNG terminal (hereinafter – LNG terminal) still remains at a high level. However, revenue for the nine months of 2020 comprise EUR 32.7 million and is lower by EUR 20.4 million or 38.5% compared to the same period of 2019 (EUR 53.2 million) due to the reduction of LNG security supplement by EUR 20.1 million in 9 months 2020. Compared to the same period of 2019, more income was generated due to much higher level of LNG regasification, which partially compensated the lower revenue due to the reduction of LNG security supplement.
Revenue of oil terminals for the first nine months of 2020 is lower by EUR 0.2 million compared to the same period of 2019. Due to the COVID-19 pandemic, which had a negative impact on the demand for petroleum products, the period of unfavorable low refining margins around the world has prolonged. Although it increases demand for oil product storage, the volumes of the transshipment are affected negatively. All those adverse developments in the international markets, along with the geopolitical developments in the neighboring region, affected performance of KN oil terminals. However, the Group was capable to amortize the unfavorable international circumstances by focusing on its operational efficiency and by diversification of its services, including oil product storage services, as well as product portfolio.
During the first nine months of 2020 revenue from commercial LNG activities comprise EUR 4.3 million and is higher by EUR 4.1 million compared to the same period of 2019 (EUR 158 thousand). Commercial LNG activities comprise of business development projects including LNG terminal operator services provided at the Port of Acu terminal in Brazil and LNG reloading station in Klaipėda.
Enclosed:
- Interim Condensed Consolidated and Separate Financial Statements of AB Klaipėdos nafta for the 9 months period ended 30 September 2020.
- Presentation of the unaudited financial results of the Group for the 9 months period of 2020.
Jonas Lenkšas, Chief Financial Officer, .
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