Lietuvos energijos gamyba, AB - Interim information

Operating Results of "Lietuvos Energijos Gamyba", AB for the first 6 Months of 2013

Elektrėnai, Lithuania, 2013-08-30 14:00 CEST (GLOBE NEWSWIRE) -- In the First 6
Months 2013, Profit of “Lietuvos Energijos Gamyba” Increased More than Twice 

In the first 6 months 2013, “Lietuvos Energijos Gamyba” (former Lietuvos
Energija) Group of Companies (hereinafter the Group) earned net profit of LTL
57.9 million. This is almost a double result compared to the last year: in the
first 6 months 2012, the net profit was LTL 26.2 million. 

“The first 6 months 2013 was particularly successful for the commercial
activities of the Group. The income generated by the said activities
compensated both markedly lower power generation (due to drop in power
generation quota) at the stand-by power plant in Elektrėnai, and by the change
in value of the emission allowances (EA). Having eliminated the effect of the
change in value of EA, net profitability in the comparable period demonstrated
a growth higher by 11 points compared to 2012 (amounting to 15.3%)”, so the
performance is commented by Dalius Misiūnas, former general manager of
“Lietuvos Energijos Gamyba”, currently chairman of the Supervisory Board. 

The double increase in profit allowed for a stronger financial position of the
Group. In the period discussed, the financial liabilities of the Group to the
banks were reduced; furthermore, dividends of LTL 25 million were paid out to
the shareholders of “Lietuvos Energijos Gamyba” for the year 2012. 

Profitability indicators

Compared to the first 6 months 2012, the EBITDA of the Group increased twice
and reached LTL 145 million. EBITDA margin was 27.4% and exceeded that of the
first 6 months 2012 by 16.9 points. 

Net profitability of the Group demonstrated an increase of 7 points, from 3.9%
in the first semester 2012 to 10.9% in 2013. 

In the above period, the net profitability (after elimination of the effect of
the EA value change) increased from 4.3% to 15.3%. Net profit of the Group (the
effect of the EA value change in the period excluded) demonstrated an almost
quadruple growth, from LTL 28.5 million in the first 6 months 2012 to LTL 81.3
million in the first 6 months 2013. 

According to Mr Misiūnas, high profitability indicators demonstrate that the
Group has chosen an effective strategy of trade in the free market. 

Income, regulated and commercial activities

Intense competition in the free market and a 53% drop in the generation volumes
in the stand-by power plant have led to a 20% drop in the 6-months income of
the Group. In the 6 months 2012, the income generated was LTL 664.9 million,
and in 2013, LTL 531.3 million. 

Income generated by the regulated activities* in the above period dropped by
14% compared to the same period in 2012. The share of the said income in the
entire income structure of 6 months of the Group accounts for 38% (in the I
semester 2012, 46%). The regulated activities of the Group generated LTL 1
million gross profit in the 6 months 2013. In the same period 2012, regulated
activities was not profitable, as it generated loss of LTL 5 million. 

In the period above, there was a marked increase in profitability of the
commercial activities**  - it reached 18.4% before taxes (in the 6 months 2012,
8.2%). Hence, although the income generated by the said activities of the Group
dropped by almost 20%, the profit generated increased. Income of the commercial
activities accounted for 62% of total income and allowed for a gross profit of
LTL 60.9 million. In the 6 months 2012, gross profit of the commercial
activities reached LTL 35.2 million. 

Power generation indicators

According to Juozas Bartlingas, Director of the Power Generation Department at
“Lietuvos Energijos Gamyba”, acting General Manager of the Company, successful
commercial performance was greatly influenced by higher power generation at the
hydroelectric plants managed by the Company. In first 6 months 2013, total
quantity of electricity generated at Kruonis pumped storage hydroelectric plant
and Kaunas hydroelectric power plant was almost 20% higher, compared to the
same previous period, 0.52 and 0.42 TWh. 

In the above period, Kaunas hydroelectric power plant generated 0.25 TWh
electricity, i.e. over 35% of the total electricity generated in the country,
and supplied to the grids from renewable sources. The certified “Green
Lithuanian energy” generated by EnergijosTtiekimas, part of the Group, had 30
corporate and 5 household users in the late I half-year. 

Total quantity of electricity generated by the three power plants managed by
“Lietuvos Energijos Gamyba” during the 6 months 2013 was 0.74 TWh, while the
quantity in the same period 2012 was 0.88 TWh, i.e. 19% more. 

In terms of power generation, March was exceptional, where due to sharp frost,
the demand for electricity increased markedly and so did the electricity
prices. On that occasion, the Company launched a block of the stand-by power
plant. This was the third occasion already since February 2012, where blocks of
a power plant of “Lietuvos Energijos Gamyba” are launched to secure and in
response to a sharp increase in prices. 

“Lietuvos Energijos Gamyba”, AB is part of “Lietuvos energija”, UAB group of
companies. 

“Lietuvos Energijos Gamyba” group of companies includes: “Lietuvos energijos
gamyba”, AB (before 5 August 2013 known as Lietuvos energija, AB) managing the
stand-by power plant in Elektrėnai, Kruonis pumped storage hydroelectric plant
and Kaunas hydroelectric power plant; Energijos tiekimas UAB, UAB “Kauno
energetikos remontas” and UAB Technologijų ir inovacijų centras. 



*Regulated activities include electricity generation at the stand-by power
plant in Elektrėnai, heat generation and power reserving services provided by
the stand-by power plant and Kruonis pumped storage hydroelectric plant. 

**Commercial activities include electricity generation at Kruonis pumped
storage hydroelectric plant and Kaunas hydroelectric power plant, wholesale and
retail trade in electricity on the free market and other commercial services. 



Further information is available at:
Ernesta Dapkienė, Head of the Corporate Communication Division at “Lietuvos
energijos gamyba”, AB 
Tel. +370 528 33696, e-mail: ernesta.dapkiene@le.lt

Attachments:

6 months 2013_consolidated interim report and financial information_LEG_20130830.pdf

20130830_LEG_6 months 2013 results_press release.pdf