AB Klaipėdos nafta unaudited financial information regarding the twelve months of 2020
AB Klaipėdos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for the twelve months ended 31 December 2020.
- Revenue for the 12 months of 2020 of the Group and the Company are EUR 80.5 million and EUR 77.5 million respectively and is lower by 22.9% and 25.6% compared to the same period of 2019 (EUR 104.4 million and EUR 104.1 million respectively).
- Net profit of the Group and the Company for the 12 months of 2020 amounts to EUR 32.9 million and EUR 32.5 million respectively and is 4.3 times and 4.1 times higher compared to the 12 months of 2019 (EUR 7.6 million and EUR 7.9 million respectively).
- Net profit adjusted of the Group and the Company for the 12 months of 2020 amounts to EUR 10.4 million and EUR 10.0 million respectively and is lower by 18.0% and 23.7% compared to the same period of 2019 (EUR 12.7 million and EUR 13.1 million respectively).
- EBITDA for the 12 months of 2020 of the Group and the Company amounts to EUR 72.9 million and EUR 72.1 million respectively and is higher by 10.7% and 8.9% compared to the same period of 2019 (EUR 65.8 million and EUR 66.2 million respectively).
- EBITDA adjusted for the 12 months of 2020 of the Group and the Company amounts to EUR 50.3 million and EUR 49.6 million respectively and is lower by 29.1% and 30.5% compared to the same period of 2019 (EUR 71.0 million and EUR 71.4 million respectively).
Main financial indicators of the Group comparing 12 months of 2020 and 2019:
| Financial results for 12 months of 2020 | Change, compared to 12 months of 2019 | Adjusted results for 12 months of 2020 | Change, compared to 12 months of 2019 | |
| Revenue | 80.5 million Eur | -22.9% | 80.5 million Eur | -22.9% |
| Net profit | 32.9 million Eur | 4.3 times | 10.4 million Eur | -18.0% |
| EBITDA | 72.9 million Eur | 10.7% | 50.3 million Eur | -29.1% |
Management comment:
During 12 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 capitalise 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 is reflected in the regulated segment. Revenue of the Group for 2020 compared to 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) remains at a high level. Revenue for 2020 is EUR 43.4 million and is lower by EUR 27.5 million or 38.8% compared to the same period of 2019 (EUR 70.9 million). The lower revenue was mainly determined by the Company's decision to optimize the infrastructure costs of the LNG terminal in Klaipėda, which respectively reduced the security supplement for Lithuanian gas consumers from the beginning of 2020 (EUR 26.8 million per annum). The decrease in revenue was also due to the lower rate of return on investment (ROI) set for the Company for 2020, which was partially offset by higher regasification volumes.
For twelve months of 2020 revenue from commercial LNG activities is EUR 5.7 million and is higher by EUR 4.3 million compared to the same period in 2019 (EUR 1.4 million). Commercial LNG activities consist of business development projects including LNG terminal operator services provided at the Port of Açu terminal in Brazil and LNG reloading station in Klaipėda.
Revenue from oil terminals for 2020 is lower by EUR 0.7 million compared to the same period in 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.
However, it should be noted, that in December 2020 the client of the company BNK (UK) Limited has informed about the temporary suspension of oil products sales through Klaipėda. In the future tenders announced by BNK Klaipėda will not be indicated as their sales point. All contracts between BNK and the Company remain in force, but the contractual obligations are suspended until further notice. At the time of the report, no transhipment of oil product cargo from Belarus is nominated through KN oil terminals for February or further periods. In Management opinion, it can be assumed that oil products from Belarus will not be transhipped through KN oil terminal in Klaipėda and accordingly the company follows such assumptions for 2021.
Enclosed:
- Condensed Consolidated and Separate Financial Statements of AB Klaipėdos nafta for the 12 months period ended 31 December 2020.
- Presentation of the unaudited financial results of the Group for the 12 months period of 2020.
Jonas Lenkšas, Chief Financial Officer, .
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