AB Klaipėdos Nafta preliminary revenue for the February 2020
The preliminary sales revenue of the KN (AB Klaipėdos nafta, further the Company) LNG terminals for February 2020 comprised EUR 4,0 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 two months of 2020 decreased by 31.7 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 February 2020 comprised EUR 2.0 million. The preliminary sales revenue of the Company’s oil terminals for the first two months of 2020 comprised EUR 4.0 million, i.e. less by 28.6 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-February 2020 amount to EUR 12.6 million and is lower by 30.8 per cent compared to the same period of 2019 - EUR 18.2 million.
Preliminary revenue of the Company, EUR million:
| February | January - February | |||||
| 2020 | 2019 | Change, % | 2020 | 2019 | Change, % | |
| Oil terminals activity | 2.0 | 2.5 | -20.0% | 4.0 | 5.6 | -28.6% |
| LNG terminals activity | 4.0 | 5.6 | -28.6% | 8.6 | 12.6 | -31.7% |
| Total | 6.0 | 8.1 | -25.9% | 12.6 | 18.2 | -30.8% |
Comment by the Company management:
In 2019 KN implemented all the necessary steps to optimize Klaipėda LNG terminal costs thereby reducing the cost of LNG terminal infrastructure for consumers starting from 2020 annually. This decision is reflected in the revenue of Klaipėda LNG terminal in January-February of 2020, despite the continuous high levels of LNG regasification.
The revenue level of KN oil terminals is still affected by the decreased export volumes of petroleum products from Belarus, which are influenced by the ongoing Belarus's negotiations with Russia on oil import prices. However, it is anticipated that the planned import of crude oil through Klaipėda oil terminal in March will have a positive impact on stabilization of KN revenue. It should be also noted, that KN has a long-term cooperation agreement with its partners in Belarus and obligations to tranship agreed quantities of petroleum products. We believe that our customers will be able to meet agreed annual commitments in full by the end of the year.
Jonas Lenkšas, Chief Financial Officer,
