Energijos Skirstymo Operatorius AB - Notification on material event

Preliminary ESO results for 2016: net profit up by 8.6% to EUR 92.86 million

Energijos Skirstymo Operatorius AB (hereinafter – ESO or the Company),
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 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 2016, based on preliminary unaudited financial
statements, earned EUR 92.86 million net profit. 

Compared with 2015 LESTO and Lietuvos Dujos consolidated net profit, which
amounted to EUR 85.48 million, this is 8.6% more. Net profit increased due to
increased revenue and reduced operating costs.   ESO revenue during
January-December of 2016 amounted to EUR 650.06 million and, compared to 2015,
increased by 1.9%, when LESTO and Lietuvos Dujos consolidated revenue was EUR
637.87 million. Revenues increased due to higher electricity and natural gas
distribution volumes. 

ESO operating expenses during 2016 amounted to EUR 98.56 million – 11.54% less
compared to the same period of 2015, when LESTO and Lietuvos Dujos consolidated
operating expenses comprised EUR 111.31 million. 

During January-December of 2016 ESO EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) amounted to EUR 163.79 million – 10% more
compared to 2015, when LESTO and Lietuvos Dujos consolidated EBITDA was equal
to EUR 148.91 million. 

"First year of ESO operation has exceeded our expectations. The concentration
of two operators – electricity and natural gas – gave us a significant increase
in operational efficiency, reduced operating costs and directly contributed to
the favorable prices of services. We are glad that the gas distribution service
price fell for the first time in five years, while the public electricity
prices fell for the fourth year in a row.  We have even more ambitious targets
for the next year: we will set the operational efficiency bar higher, enhance
network modernization investment and will offer new services for our customers,
"- said Chief Executive Officer of ESO Mrs. Dalia Andrulionienė. 

The Company’s audited financial statements of 2016, the annual audited report
is due to be published on 28 February. 




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