Lietuvos energijos gamyba, AB - Interim information

Lietuvos Energijos Gamyba, AB, interim financial information for the first three months of 2017

Elektrėnai, Lithuania, 2017-05-15 15:00 CEST (GLOBE NEWSWIRE) -- Lietuvos
Energijos Gamyba, AB, legal entity code 302648707, the registered office
address is Elektrinės st. 21, Elektrėnai (hereinafter – the Company). Overall
number of ordinary registered shares is 635 083 615, ISIN code – LT0000128571. 

The Company announces the unaudited financial results for the first three month
period ended 31 March 2017. 

  -- The Company’s sales revenue of the January-March period of 2017 are EUR
     31.79 million and are 5 percent smaller than the revenue of the
     January-March period of 2016 (EUR 33.46 million).
  -- The Company’s profit of the January-March period of 2017, excluding
     interest, taxes, depreciation and amortization (EBITDA) reaches EUR 14.50
     million and is 52 percent bigger than the profit of January-March period of
     2016 (EUR 9.56 million).
  -- The Company’s net profit of the January-March period of 2017 reaches EUR
     3.97 million and is 72 percent smaller than the net profit of January-March
     period of 2016 (EUR 13.96 million).


The main reason for the loss of sales revenue is a huge decrease of electricity
production in Elektrėnai Complex, which produced only 6 GWh of electricity
during the first three months of 2017. The electricity production units in
Elektrėnai were not generating electricity due to fairly smaller prices of
electricity in exchange, which were smaller than the prices at the beginning of
2016. As a result, the combined cycle gas turbine unit in Elektrėnai Complex
could not operate competitively, hence, it was activated only once. Last year
in the same period it was activated nine times and produced nearly nine times
more electricity (34 GWh). 

The generation of Kruonis pumped storage power plant produced was by third
smaller during the January-March period of 2017 compared to the same period of
2016 (104 GWh and 153 GWh respectively). 

One of the major reasons for the increase in EBITDA earnings is the flood,
which made the Kaunas Algirdas Brazauskas Hydroelectric Power Plant generate a
greater amount of energy. During the January-March period of 2017 this power
plant produced 132 GWh of electricity, i. e. 12 percent more than in the same
period in 2016 (118 GWh). Overall, the power plants of the Company produced 242
GWh of electricity during the January-March period of 2017 – 21 percent less
than during the same period in 2016 (305 GWh). 

The increase in EBITDA is also stimulated by the fact that in 2017 Company’s
revenue from regulated activities was not reduced due to the regulation of
commercial production and inspection of the Company’s activity in 2010-2012. As
a result of the decisions of The National Commission for Energy Control and
Prices, financial reports of the Company in 2016 January-March did not
acknowledge a part of regulated activity income and this had a negative impact
of EUR 5.8 million on the EBITDA indicator of the Company. 

The change in the Company’s net profit (compared to the results of
January-March period of 2017 and January-March period of 2016) emerged due to
the effect of one-off factors – the selling result of the business part, which
was calculated in early 2016 (EUR 19,5 million). If the sale of the part of the
business was excluded, the Company would be experiencing an increase in net
profit. 

“The changing market conditions imply that our power plants face a greater
rivalry. We take this challenge seriously, therefore, we effectively manage our
costs. In addition, we support the availability of operating facilities in
order to be able to start producing electricity in time and contribute to a
proper supply of electricity to customers and to the stabilization of
electricity prices on the market. We are also actively implementing the
Company’s strategy which is aimed at making our employees dedicate their
competency and time to delivering new services – in March we provided the first
maintenance services to external customers”, – chairwoman of the Company’s
board and CEO of the Company Eglė Čiužaitė points out the most important
activity issues for 2017. 


         Valentas Neviera, Head of Communication Division, tel. +370 670 25997,
e-mail. valentas.neviera@le.lt

Attachments:

January-March 2017_interim financial statements and interim report.pdf