Kauno Energija - Notification on material event

Activity results of the 1 half of the year 2016

The Board of AB Kauno Energija (hereinafter – the Company) (code – 235014830)
assessed results of Company’s business activity of the 1 half of the year 2016
and financial state as at 30 June 2016 and approved AB Kauno Energija
consolidated and Company’s non-audited results of the 1 half of the year 2016. 

The result of Company’s activities of the 1 half of the year 2016 according to
the International Financial Reporting Standards is profit (before taxes) in
amount of EUR 7,017 thousand (result of the 1 half of the year 2015 was
amounted to EUR 4,781 thousand), turnover from sales is EUR 36,189 thousand (in
the 1 half of the year 2015 it was amounted to EUR 37,473 thousand). The result
of activities of the Group which consists of AB Kauno Energija and its’
subsidiary UAB Kauno Energija NT (code – 303042623) of the 1 half of the year
2016 is profit (before taxes) in amount of EUR 7,185 thousand (the result of
the 1 half of the year 2015 – EUR 4,773 thousand), turnover from sales is
amounted to EUR 36,184 thousand (turnover from sales of the 1 half of the year
2015 is amounted to EUR 37,468 thousand). 

As at the end of reporting period (30 June 2016) the rate of critical liquidity
of the Company that makes comparison between short term assets without stocks
and short term liabilities, increased from 1.08 to 2.39 during the period from
the end of 2015 (the rate of the Group increased from 1.07 to 2.39). The EBITDA
of the Company of the 1 half of the year 2016 is EUR 10,520 thousand (EBITDA of
the 1 half of the year 2015 was EUR 8,059 thousand), and EBITDA of the Group is
EUR 10,667 thousand (EBITDA of the 1 half of the year 2015 was EUR 8,060
thousand). 

The main Company’s revenue and profit is generated in 1 and 4 quarters of the
year. Company’s profit of the 1 half of the year 2016 in comparison with the
profit of the same period of the year 2015 increased due to the effective
Company’s activities and increase in heat production in own facilities using
biofuel (318 thousand MWh of heat were produced in the 1 half of the year 2016,
i.e. 248 thousand MWh were produced using biofuel; 239 thousand MWh of heat
were produced in the 1 half of the year 2015, i.e. 186 thousand MWh were
produced using biofuel). Company’s turnover from sales of the 1 half of the
year 2016 in comparison with the turnover from sales of the same period of the
year 2015 is at 3.43 per cent lower due to the 12.5 per cent lower amount of
heat sold (the amount of heat sold consisted of 660.6 thousand MWh in the 1
half of the year 2016, and the amount of heat sold consisted of 754.8 thousand
MWh in the 1 half of the year 2015) and due to the decrease in average heat
price at 7.43 per cent (in January – June of the year 2016 it was 5.36 ct/kWh
and in January – June of the year 2015 it was 5.79 ct/kWh). The profit of the 1
half of the year 2016 also increased due to the compensation in amount of EUR
1.8 million received from UAB Kauno Termofikacijos Elektrinė according to the
peaceful agreement that has been signed on 28 December 2015 by which litigation
in Arbitration case regarding noncompliance of Investment Agreement of 30 June
2003 was terminated. 

We hereby present an Interim unaudited Financial Statements of the 1 half of
the year 2016 together with confirmation of responsible persons. 


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

Attachments:

2016 I half KE ENG_sign.pdf