Energijos Skirstymo Operatorius AB - Notification on material event

Preliminary ESO results for three months of 2016: revenue up by 3% to EUR 182 million

"Energijos Skirstymo Operatorius" AB, identification code 304151376, registered
office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total
number of registered ordinary shares issued by company is 894 630 333; ISIN
code LT0000130023. 

Electricity and natural gas distribution company “Energijos Skirstymo
Operatorius” AB (hereinafter - ESO), which started it operations since January
1, 2016 after a reorganization merging LESTO AB (hereinafter - LESTO) and
joint-stock company “Lietuvos Dujos” (hereinafter – “Lietuvos Dujos”), during
the first quarter of 2016, based on preliminary unaudited financial statements,
earned EUR 30.798 million net profit. 

Compared with first quarter of 2015 LESTO and „Lietuvos Dujos“ consolidated net
profit, which amounted to EUR 35.859 million, this is 14 % less. ESO net profit
declined due to 14 percent decline in 2016 regulated services determined
electricity purchase prices compared to 2015. 

In January-March 2016 ESO EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) amounted to EUR 48.865 million – 7.8 % less compared to the
same period of 2015, when LESTO and „Lietuvos Dujos“ consolidated EBITDA was
equal to EUR 52.971million. 

ESO revenue during January-March of 2016 amounted to EUR 182.451 million and,
compared to the same period of 2015, increased by 3.3 %, when LESTO and
„Lietuvos Dujos“ consolidated revenue was EUR 176.541 million. Revenue
increased due to higher electricity and natural gas distribution volumes. 

"Successful merger of LESTO and “Lietuvos Dujos” to ESO has opened up new
opportunities for the company and customers. During the first three months of
operation, we improved our service quality and reliability indicators, mapped
out strategic directions for further improvement and development. Due to colder
weather we distributed more electricity and gas; as a result our revenue
increased by 3 percent. We hope that gas consumption volumes will continue to
grow gradually, because we already noticing a rapid interest among residents
and business due to cheaper natural gas, "- commenting on the 2016 first
quarter preliminary results ESO said Chairman of the Board and CEO Liudas
Liutkevicius. 

ESO interim report for the three months of 2016 is due to be published on 31
May. 


         Representative for Public Relations Martynas Burba, tel. (8~5) 2514516.