Klaipedos Nafta - Interim information

Interim financial unaudited information for the 12 months of 2016

AB Klaipedos nafta (hereinafter – KN, the Company) announces the interim
condensed financial statements for the financial year 2016. 

AB Klaipedos nafta sales revenues for the year 2016 comprise Eur 103.8 million;
or less by 5.3% compared to the same period of 2015 – Eur 109.7 million. The
net profit for the year 2016 amounts Eur 13.9 million or lower by 36.9%
compared to the same period of 2015, – Eur 22.0 million. Profit before tax,
interest, depreciation and amortization (EBITDA) for 2016 comprise Eur 28.6
million, less by 22.9%, comparing to 2015 when EBIDA comprised Eur 37.1
million. 



Management comment:

The previous year definitely could be named as year of growth. Activities
volumes significantly increased: oil and LNG terminals’ activity volumes came
to record high. Total in the port of Klaipeda 8.2 million tons of cargo handled
through the KN operating terminals that is approximately 20% of total handling
turnover of the port of Klaipeda. 

Total during 2016 the Company reloaded 7.3 million tons of petroleum products
in the oil terminals of Klaipeda and Subacius that is more by 13.6% comparing
to 2015 when 6.5 million tons were reloaded. Significantly increased petroleum
product cargo identified that KN terminal provides transhipment services
professionally and effectively. The main reason for volume increase is related
with the transhipment results of AB ORLEN Lietuva which are the best since
2005. In previous year transit cargos from Byelorussian refineries also
increased despite the slowdown in the second half of the year. 

LNG terminal regasification volume in 2016 was 14.6 million MWh or by 3.2 times
more comparing to the same period of 2015 when 4.6 million MWh have been
regasified. That is the largest activity volume throughout the history of FSRU
INDEPENDENCE. We may state that LNG terminal results of 2016 represent in full
the market needs and ensure the benefits of the LNG terminal as energy source.
It should be noted that in previous year on average more gas were imported
through LNG terminal than through pipeline from Russia. This is obvious example
of the benefit when imported gas price correlate with the global gas prices and
the Company is able to work efficiently and successfully with three terminal
users. 

Next to the successful activities of oil products and LNG handling we have been
implementing not a single investment project foreseen in the Strategy of the
Company for the years 2016 - 2020. These projects will ensure the optimal
operations of our managed infrastructure, effectiveness of activities and
development. 

AB Klaipedos nafta financial results for the year 2016 prove intensive and
effective performance of KN. Despite the increased activities volumes and
implementation of the projects the Company professionally managed its costs and
ensured high return for the shareholders. For the analyzed period the return on
equity was 7.1%; EBITDA margin – 27.6%. 

KN Oil terminal revenues in 2016 comprise Eur 34.0 million that comparing to
2015 (Eur 37.3 million) decreased by 8.5%. Change of situation in the oil
products transhipment market has modified the pricing of the services and
structure of the service contracts that caused decrease in revenues. 

Sales revenues of the KN LNG Terminal in 2016 comprise Eur 67.0 million when
for the same period in 2015 – Eur 69.9 million. Decrease in revenues is related
with the lower natural gas consumption capacities. It must be taken into
account that LNG terminal profit level is set by the legal regulation as to the
laws of the Republic of Lithuania so it is going to be compensated through the
other periods. 



Unaudited interim financial statements for the 12 months of 2016 and financial
results presentation are enclosed. 








         Marius Pulkauninkas, Acting General Manager, tel. 8 46 391763

Attachments:

KN_veiklos rezultatai_2016_EN.pdf

IFRS_2016_EN_Q4.pdf