LITGRID - Interim information

Litgrid Group reports net profit growth

Vilnius, Lithuania, 2016-08-25 15:36 CEST (GLOBE NEWSWIRE) -- Results of
Litgrid Group for the first six months of 2016 reflect among other things the
impact of the new power interconnections. The Group‘s revenues in this period
totalled EUR 84.7 million, a 75% increase compared with the same period of
2015, whereas the net profit increased almost four-fold (to EUR 8.7 million). 

Income from electricity transmission accounts for the largest share of the
revenues (40%). Compared with the first six months of 2015, it increased 35% to
EUR 33.7 million. The growth was driven by a 5% increase in the electricity
sales and a higher tariff rate set for the electricity transmission service by
the National Commission for Energy Control and Prices. 

Upon putting LitPol Link and NordBalt power links into operation, during the
first six months of 2016 Litgrid earned EUR 7.5 million as congestion revenue
inflow. These revenues may be used for the maintaining and improving the power
links’ capacities. 

Costs of the Group in the first six months of 2016 amounted to EUR 74.3
million, a 64% increase on the same period of 2015. This has been largely
determined by the putting of the new power links into operation and the related
increase in the demand for balancing energy and system services as well the
process costs. 

“The operations of the new power links with Poland and Sweden and growing
electricity consumption in the country requires a reliable power transmission.
The grid built 30-40 years ago clearly responds to changes in the electricity
flow, thus ensuring reliable operation of the grid equipment requires
investments to upgrade the grid”,- said Rimantas Busila, the director of
Finance department at Lithuanian electricity transmission system operator
Litgrid. 

Investments of EUR 247 million are planned for the period 2016-2021, with the
majority of them earmarked for the transmission grid and system reliability
projects. This includes both upgrading of the national grid and preparations
for the synchronous operation with the grids of Continental Europe. 

The Group’s EBITDA for the first six months of 2016 were EUR 24.5 million. This
means a 72% (EUR 10.2 million) increase compared to the same period of 2015.
The annual capital return and asset return ratios improved during the first six
months of 2016: the return on capital increased almost four-fold (to 7.1%), and
the return on assets grew to 3.5% compared to 0.8% in the first half-year of
2015. 


         Vilija Railaitė, Head of Communications
         Phone: +370 613 19977
         e-mail: vilija.railaite@litgrid.eu

Liitteet:

Litgrid Q2 EN.pdf