Kauno Energija AB - Interim information

The activity results of the 3 months of the year 2014

The Management Board of AB Kauno Energija (hereinafter - the Company) (code -
235014830) approved on 30 April, 2014 non audited interim financial statements
of the I quarter of the year 2014, prepared according to the International
financial reporting standards accredited to use in European Union. 

The result of Company's activities of I quarter of the year 2014 according to
international accounting standards is profit (before taxes) in amount of LTL
10,705 thousand (EUR 3,100 thousand), turnover from sales is LTL 130,396
thousand (EUR 37,765 thousand). The result of activities of the Group which
consists of AB Kauno Energija and of its subsidiaries UAB Pastatų Priežiūros
Paslaugos (code - 300580563) and UAB Kauno Energija NT (code - 303042623) of I
quarter of the year 2014 is profit (before taxes) in amount of LTL 10,739
thousand (EUR 3,110 thousand), turnover from sales is LTL 130,379 thousand (EUR
37,760 thousand). 

EBITDA of I quarter of the year 2014 is: Company's - LTL 15,842 thousand (EUR
4,588 thousand), Group's - LTL 15,892 thousand, (EUR 4,603 thousand). 

Company's profit of the I quarter of the year 2014 before income taxes as
compared to the same period of the year 2013 decreased, because the new
constituents of heat price came into effect starting from 1 March 2013 which
were decreased due to the decision of National Commission for Energy Control
and Prices to reduce constant expenditures of heat supply price with LTL 10,014
thousand (EUR 2,900 thousand). Turnover from sales of I quarter of the year
2014 is lower as compared to the same period of the year 2013 due to the 14.3
percent lower quantity of the heat sold (sales of the heat in the I quarter of
the year 2014 were MWh 506.8 thousand and in the I quarter of the year 2013
they were MWh 591.6 thousand) and due to the 9.2 percent reduced average heat
price (January - March of the year 2014 - 25.48 ct/kWh, January - March of the
year 2013 - 28.06 ct/kWh). 

The comment of the management on the results of I quarter of the year 2014:

The Company started in the year 2013 and further implements in the year 2014
the program of increase of activities effectiveness in order to reduce heat
price. A new Company's management structure was approved in the year 2013. Part
of the employees terminated their employment contracts in the way of bilateral
settlement in the period of its implementation: as at 31 March, 2014 546
employees worked at the Company (as at 31 March, 2013 - 571 employees), in the
Group - 552 employees (as at 31 March, 2013 - 594 employees). 

In the year 2014 the Company successfully continues to implement main
investment goals: to reduce heat production expenditures of existing heat
production sources, to increase part of cheaper sort of fuel (biofuel) in fuel
balance, to increase power of own sources up to fulfilling of needs of power
assurance. 

Comparable expenditures of heat production as at 31 March 2014 decreased by 8.2
percent in comparison with expenditures as at 31 March 2013. Part of biofuel in
total fuel balance increased from 2.6 to 29.5 percent. Installed capacity of
own heat production sources in Kaunas integrated heat supply network increased
from 288.55 MW to 369.04 MW. 

In January 2014 the Company decided to start consultations with UAB Fortum Heat
Lietuva regarding offered strategic investment of UAB Fortum Heat Lietuva to AB
Kauno Energija. 


         Loreta Miliauskienė, Head of the Economics and Planning Department,
tel. +370 37 305 855

Attachments:

2014 I quarter EN.pdf