2014-02-28 08:08:26 CET

2014-02-28 08:09:26 CET


REGULATED INFORMATION

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Lietuvos energijos gamyba, AB - Interim information

Financial results of “Lietuvos energijos gamyba” continued to improve in 2013 


Elektrėnai, Lithuania, 2014-02-28 08:08 CET (GLOBE NEWSWIRE) -- Last year
national electricity producer “Lietuvos energijos gamyba” succeeded in
fulfilling its obligation to ensure the security of power supply and increase
the company's value for its shareholders.  In 2013, the “Lietuvos energijos
gamyba” group of companies generated an EBITDA (earnings before interest,
taxes, depreciation and amortization) of LTL 239.6 million, an increase of 
41.1% compared to 2012. 

The incomes of the “Lietuvos energijos gamyba” group of companies (hereinafter
referred to as the Group) amounted to LTL 1 199.4 million in 2013, a drop of
16.9% compared to 2012. This drop is attributed to the decline in the output of
subsidised electricity and tense competition on the free market. 

Despite the drop in incomes, the Group's EBITDA margin grew by 8.2 percentage
points, from 11.8% in 2012 to 20% in 2013. This growth was triggered by the
Group's successful trading of electricity. Although electricity in excess of
the quota generated at the Elektrėnai complex during October and a few days of
November had a negative impact on the Group's financial results in commercial
segment, the successful trading of electricity at the end of 2013 improved the
Group's annual trading results. 

In 2013, the Group reduced its operating costs by more than a fifth (22.4%) to
LTL 1 076.7 million compared to 2012, mostly due to the reduction of variable
costs. 

The Group's net profit in 2013 amounted to LTL 108.6 million, an increase by
2.8 times compared to LTL 38.6 million in 2012. 

‘The year 2013, especially the second half, was particularly challenging due to
the complicated situation in the electricity market that made it very difficult
to balance the portfolio of power generation and procurement portfolio.
Nevertheless, this difficulty was overcome and the Group's financial results
reflected the objectives of every employee pursued throughout the entire 2013 -
to enhance operating efficiency, use resources sustainably and provide quality
services to customers. In 2013, we did our homework and laid the foundations
for the implementation of the major project - the construction of heat energy
production capacities in Elektrėnai. The construction of a biofuel boiler plant
in Elektrėnai is already underway. We hope that this and other investment
projects will ensure efficient power production in the nearest future,' said
Juozas Bartlingas, CEO and Chairman of the Board of “Lietuvos energijos
gamyba”. 

Generation indicators

The power plants, controlled by “Lietuvos energijos gamyba”, generated a total
1.96 TWh of electricity in 2013, a decline of 11% from 2.2 TWh in 2012. 

In 2013, the Elektrėnai complex which comprises a Combined Cycle Unit and a
Standby Power Plant generated 1.08 TWh of electricity, including 0.18 TWh above
the quota of subsidised electricity granted for the Elektrėnai complex. The
Elektrėnai complex exhausted most of its 2013 quota in January-September of
2013. Due to the restriction of electricity import in the fourth quarter of
2013, which resulted in peak power deficit, the Combined Cycle Unit operated
nearly the whole October and the 300 MW unit of the Standby Power Plant
operated a few days in November to generated power in excess of the quota to
maintain the stability of electricity prices. 

In 2013, the Kaunas Hydroelectric Power Plant generated 0.41 TWh of electricity
from renewable energy resources, a growth by nearly one-third from 0.31 TWh in
2012. This growth is attributed to the higher than average discharge of the
Nemunas River. Among the purchasers of the certified “Green Lithuanian energy”
generated at the Kaunas Hydroelectric Power Plant were 8 household customers
and 40 business customers of the Group's company “Energijos tiekimas”. 

The output of the Kruonis Pumped Storage Hydroelectric Plant did not change
remarkably in 2013 and stood at 0.48 TWh compared with 0.47 TWh in 2012. 

Regulated and commercial activities

The Group's regulated activity encompasses electricity generation at the
Standby Power Plant in Elektrėnai, heat production and power reserving services
provided by the Standby Power Plant and Kruonis Pumped Storage Hydroelectric
Plant. As the output of subsidised electricity declined in 2013, the Group's
incomes from regulated activity amounted to LTL 516.2 million compared to LTL
596.7 million in 2012. 

The Group's commercial activity involves power generation at the Kruonis Pumped
Storage Hydroelectric Plant and the Kaunas Hydroelectric Power Plant as well as
selling electricity on the free wholesale and retail market and providing other
services. Due to high competition on the free market, the Group's incomes from
commercial activity fell by 19.4% to LTL 683.2 million in 2013 compared to
2012. The effective electricity trading strategy helped the Group to boost its
profit before taxes (PBT) from commercial activity by 26.5%, from LTL 59.6
million in 2012 to LTL 75.4 million in 2013. 


         Stasys Vaitonis, Project manager of the Corporate Communication Unit
of “Lietuvos energijos gamyba”, AB 
         Phone: (8 5) 278 2909, e-mail: stasys.vaitonis@le.lt