LITGRID - Interim information

Litgrid CEO Daivis Virbickas: We are focusing on sustainable long-term results

Interim unaudited financial results of Litgrid for full year 2016

Vilnius, Lithuania, 2017-02-23 15:15 CET (GLOBE NEWSWIRE) -- During the year
2016, the Litgrid Group reports an increase in revenues, costs and operating
profits. The financial results were determined by the launch of the power links
with Poland and Sweden, higher revenues from transmission services, connection
of new producers and congestion. The results were also positively affected by
higher electricity consumption due to the country’s economy growth. 

'Good results of 2016 is a reflection of our targeted actions over the past
several years. The implementation of power link projects, investments into the
reliable operation of the transmission grid and power system, focus on
operating efficiency were all very important achievements, yet we see it is far
from enough yet. We aim at ensuring our long-term financial health, the factor
to play a key role when implementing and financing key synchronisation projects
we are now working on',  Daivis Virbickas, CEO of electricity transmission
system operator Litgrid, said. 

Revenues and costs

The preliminary unaudited revenues of Litgrid Group in 2016 were EUR 168.1
million, up 68% from the previous year. Revenues from electricity transmission
accounted for the bulk of the Group's revenues – 40% Compared with 2015, an
increase of 35% can be observed, totalling EUR 68 million. The increase was
primarily due to the record growth of transmitted electricity. Electricity
consumption in Lithuania amounted to 10.47 TWh (terawatt-hours) in 2016, a 4.5%
rise compared to the the previous year and was the highest since 1992. 

Following the launch of power links NordBalt and LitPol Link, Litgrid's
congestion revenues totalled EUR 11.4 million in 2016. Congestion revenues are
the result of the formation of different electricity prices on the Lithuania’s,
Swedish, Polish and Latvia’s electricity exchange markets caused by
insufficient capacity of the power lines. These earnings can be used
exclusively to ensure the distributed capacity of the links, and for
investments into the network so as to retain or extend the capacity of the
networks and ensure reliability of the system. 

The Group's costs during 2016 amounted to EUR 146.2 million, up 50% compared to
the same period the year before, the growth largely stemming from higher
operating costs of the new power lines. 

Operating profits

In 2016, Litgrid Group’s operating profits (EBITDA) totalled EUR 49.9 million,
which is 88% higher than that of the previous year. EBITDA margin increased
from 26.5% up to 29.7% in the course of the year. During the reporting period,
unaudited operating profits Litgrid Group’s rose to EUR 18.5 million from EUR
1.4 million in 2015. The annual return on equity (ROE) ratio and return on
assets (ROA) rose to 7.2% from 0.6% and to 4% from 0,3% respectively over the
reporting period. 

‘The responsibility of Litgrid to secure reliable electricity transmission
increased in 2016 as electricity flows had undergone radical change and the
country’s electricity consumption increased. The financial results of Litgrid
Group reflect both proper functioning of the transmission network and more
efficient management of the company's assets’, said Mr. Virbickas. 

Investments

In 2016, Litgrid invested EUR 36.7 million, 50% for the implementation of
strategic power engineering projects, and the reconstruction and development of
the transmission network, each. 

Litgrid is the Lithuanian electricity transmission system operator managing the
electricity flows in Lithuania and maintaining stable operation of the national
power system. Litgrid has implemented the strategic projects of power links
connecting the Lithuanian and Polish and Swedish electricity networks.
Currently, the company has been implementing a strategic national goal - to
reorganise the power system for synchronous operation with the continental
European electricity networks. The majority of Litgrid’s shares is held by its
parent company EPSO-G. 


         Vilija Railaitė
         Head of Communications
         mob. ph. +370 613 19977
         e-mail vilija.railaite@litgrid.eu

Attachments:

Litgrid interim financial statements and report 2016.pdf