LITGRID - Interim information

Litgrid Group starts the year with growing income and net profit

Vilnius, Lithuania, 2016-05-27 07:11 CEST (GLOBE NEWSWIRE) -- In the first
quarter of 2016, Litgrid Group's profit was EUR 4.9 million, as compared to the
profit of EUR 2 million during the same period of the last year. The Group's
income during the quarter increased 63% to EUR 40.8 million. The improvement in
financial indicators was mostly caused by higher income from electricity
transmission and interconnections transmission congestion. Income from power
transmission of electricity traditionally accounted for the greatest part of
the Group's income, 44% or a total of EUR 18 million. 

“The introduction of the new LitPol Link and NordBalt power interconnections
not only significantly improved the reliability of the electricity system and
expanded electricity import opportunities – their operations also brings new
revenues. This is a very important news – Litgrid's income is growing not only
because of the tariff rate, but also due to the new opportunities that have
opened up together with the new markets”, says Daivis Virbickas, CEO of the
Lithuanian electricity transmission system operator Litgrid. 

With the start of the operation of the new interconnections with Poland and
Sweden, Litgrid’s income from transmission congestion was EUR 2.7 million. The
revenues received from congestion fees can be primarily used to maintain the
interconnections and to expand their capacity. This can be done by increasing
the capacity of existing interconnections or expansion of the internal lines
causing congestion in the interconnections, construction of new
interconnections, and enhancement of the reliability of the internal network. 

A nearly doubled increase in the reserve capacity purchase price established by
the National Control Commission for Prices and Energy, and an increase in the
reserve capacity demand due to the operation of the new interconnections with
Sweden and Poland caused a EUR 10 million rise in demand for system services.
There also was an increase in technological losses of the electricity network,
which are directly related to the operation of the installations of the new
electricity interconnections – the direct current converters, 400 kV
electricity transmission line, and sea cable. 

The annual return on capital of the first quarter of 2016 grew from 3.3% to 8%,
while return on assets increased from 1.4% to 4% compared to the same period of
2015. 

“The improving indicators of return on capital and assets come as the result of
more efficient operations and decisions related to the ITT competences during
few last years as well as to asset valuation. Necessity to ensure security of
electricity supply, along with the new interconnections to other power systems
as well as rising cyber-security challenges set the agenda for the near future.
Understanding the expectations of the shareholders and the society for our
activities and projects help us grow the reputation of the regional competence
centre”, says Virbickas. 


         Vilija Railaitė, Head of Communications
         Phone: +370 613 19977
         e-mail: vilija.railaite@litgrid.eu

Attachments:

Litgrid 2016 Q1 consolidated interim report and financial statements.pdf