LITGRID - Interim information

Litgrid results for 9 months of 2018: preparation for Synchronisation

The demand for electricity kept growing, in its turn making burden for the end users smaller, raising congestion revenue from interconnections (47% more compared to the same period of the last year) will decrease the need for borrowing money to make  the investment into preparation for Synchronisation with the Continental European grid – in October ENTSO-E accepted application of Baltic states to expand the Continental European grid into Baltic countries. Litgrid is implementing several projects for this connection, opening the door for integration of Lithuanian electricity network into European grid.

In nine months of 2018, Litgrid volumes of electricity transmission via high-voltage networks for national needs amounted to 7 661 million kilowatt-hours (kWh), which is 4.1% more than in the same period of 2017. The volumes of transmission to customers of the electricity distribution operator amounted to 6 905 million kWh (+4,9 % compared to the same period of 2017).

Income and costs

Litgrid group Revenue from electricity transmission decreased by 3.3% (down to EUR 48.6 million) compared to the same period in 2017. Revenue from electricity transmission accounted for 35 % of the Group’s total revenue. The decrease in revenue has resulted from a 7.1% lower price cap for the transmission services, but the loss of revenue was compensated by increased demand of electricity. 
Income from system services grew 45 % to EUR 45.3 million. The main growth driver was the tariff for system services which had been increased 35% by the National Commission on Energy Control and Prices from 1 January 2018, the volume of service provided grew by 4%.

Costs of purchase of electricity and related services account for the major portion of the Group’s operating expenses: EUR 87.7 million or 64 % of total expenses. These costs increased by 47 % compared to the same period of 2017. This change was caused by increasing balancing (regulating) electricity and system service costs.

Profit
EBITDA for 9 months of 2018 amounted to EUR 24.4 million. Compared to the same period of 2017, EBITDA decreased by EUR 5.8 million, or 15%; the EBITDA margin decreased to 17.4% (same period of 2017: 26.1%). The Group’s net profit for the first half of 2018 was EUR 2.7 million.

Investments
In 9 months of 2018, investments of Litgrid amounted to EUR 12.5 million, of which 31% were earmarked for the implementation of strategic electric energy projects of high economic importance to the State, and 69% for the reconstruction and development of the electricity transmission grid.

Reliability of interconnections
In order to increase NordBalt availability to the market, the replacement of the underground cable joints was planned from 16 August to 28 October 2018. The replacement took place until 12th October, in total 120 joints were changed, 22 in Lithuania, 98 in Sweden. Replacements were finished 2 weeks earlier.

Jurga Eivaitė, Communications managers Litgrid AB

phone. +370 613 19977 email: jurga.eivaite@litgrid.eu

Attachment

• 9 months report 2018 Litgrid AB

Attachments:

9 months report 2018 Litgrid AB.pdf