Lietuvos energijos gamyba, AB - Notification on material event

Preliminary pre-audited results of Lietuvos Energijos Gamyba, AB for twelve months of 2015

Elektrėnai, Lithuania, 2016-02-15 15:01 CET (GLOBE NEWSWIRE) -- Lietuvos
Energijos Gamyba, AB (legal entity code 302648707, registered headquarters
address Elektrinės g. 21, Elektrėnai, hereinafter - the Company) is publishing
preliminary pre-audited financial indicators of the Company for 2015: 

  -- According to preliminary pre-audited data, in 2015, sales revenue of the
     Company totals EUR 203.10 million and is 12.1 percent lower than sales
     revenue of 2014 (EUR 231.08 million).
  -- Preliminary pre-audited earnings before interest, taxes, depreciation and
     amortization (EBITDA) of the Company amount to EUR 49.71 million and are
     22.4 percent lower compared to EBITDA of 2014 (EUR 64.02 million).
  -- Preliminary pre-audited net loss of the Company totals EUR 0.23 million in
     2015, meanwhile its net profit was EUR 33.41 million in 2014.

The greatest adverse effect on the Company’s net result of 2015 comes as a
result of a one-time loss of EUR 30 million from the decision on the
decommissioning of Units 5 and 6 of the Lithuanian Power Plant due to
impairment of long-term tangible assets and restoration of assets-related
grants. “We have provided for the decommissioning of these units due to their
poor technical condition, low future exploitation potential and high
maintenance costs in the long-term strategy of the Company. The implementation
of the strategy is aimed at the reduction of burden on consumers and increase
of the value of the Company by efficient operations”, - said Juozas Bartlingas,
the Chairman of the Board and Chief Executive Officer of Lietuvos Energijos
Gamyba. 

In 2015, EBITDA of the Company was lower than in 2014 due to decisions adopted
by the National Commission for Energy Control and Prices (NCC) that did not
recognize a part of revenue from regulated activities. Given the decisions of
the NCC regarding the results of the inspection of the Company’s activities of
2010–2012 and the recognition of the Company as having a significant impact in
the electricity production market, funds for public service obligation (PSO)
allocated for the Company and revenues from the services of the ensurance of
power reserves have decreased. 

The Company has not included these revenues into its financial reports of 2015
upon the recommendation of auditors, however, it continues actively defending
its position on the recognition thereof seeking to revoke the said decisions of
the NCC in court. According to preliminary calculations, having deducted the
impact of these decisions, the Company’s EBITDA of 2015 would total about EUR
65.6 million and would be higher than during the same period of last year,
regardless the decreased commercial electricity production volumes. 

In 2015, production in Kaunas Algirdas Brazauskas' Hydroelectric Power Plant
dropped due to very low water levels. This year, compared to 2014, 13.4 percent
less electricity was generated in this power plant. Compared to 2014, in 2015,
24.4 percent more electricity was produced in the Elektrėnai complex, where
electricity was generated in order to ensure the security of supply during warm
season. 

Consolidated and interim financial reports of the Company for twelve months of
2015 will be published according to the schedule laid down in the investor’s
calendar. 


         Valentas Neviera, Head of the Corporate Communication Division at
Lietuvos Energijos Gamyba, AB, tel. 8 670 25997, e-mail: valentas.neviera@le.lt