Energijos Skirstymo Operatorius AB - Notification on material event

Preliminary ESO results for six months of 2016: net profit up by 4.9% to EUR 53.2 million

nergijos Skirstymo Operatorius AB (hereinafter – the Company), identification
code 304151376, registered office placed at Aguonu str. 24, Vilnius, Republic
of Lithuania. The total number of registered ordinary shares issued by company
is 894 630 333; ISIN code LT0000130023. 

Electricity and natural gas distribution company “Energijos Skirstymo
Operatorius” AB (hereinafter - ESO), which started it operations since January
1, 2016 after a reorganization merging LESTO AB (hereinafter - LESTO) and
joint-stock company “Lietuvos Dujos” (hereinafter – “Lietuvos Dujos”), during
the first half of 2016, based on preliminary unaudited financial statements,
earned EUR 53.2 million net profit. 

Compared with first half of 2015 LESTO and „Lietuvos Dujos“ consolidated net
profit, which amounted to EUR 50.7 million, this is 4.9% more. Net profit
increased due to increased revenue and reduced operating costs. 

In January-June 2016 ESO EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) amounted to EUR 87.7 million – 3.8% more compared to the same
period of 2015, when LESTO and „Lietuvos Dujos“ consolidated EBITDA was equal
to EUR 84.5  million. 

ESO revenue during January-June of 2016 amounted to EUR 334 million and,
compared to the same period of 2015, increased by 3.3%, when LESTO and
„Lietuvos Dujos“ consolidated revenue was EUR 323.2 million. 

"Merger of electricity and gas distribution operators brings tangible results,
because of lower operating costs our operations are more efficient. The
positive impact on the ESO performance had higher electricity and gas
distribution volumes which increased revenue. The good news is that last year
incurred lower electricity purchase costs has made it possible since July this
year to reduce electricity prices for residential and business customers, " – 
said the Chairman of the Board and CEO Mr. Liudas Liutkevičius. 
ESO interim report for the six months of 2016 is due to be published on 31
August. 

Information is not confidential.


         Person for contacts: Head of Communication Renata Gaudinskaitė, tel.
+370 626 41467