Lietuvos Dujos - Interim information

Interim information for 9 months of 2015: refined activities helped Lietuvos Dujos to consistently improve its performance results

Vilnius, Lithuania, 2015-11-27 15:00 CET (GLOBE NEWSWIRE) -- During 9 months of
2015, AB Lietuvos Dujos owned by the state-owned energy group Lietuvos Energija
increased its sales revenue by 4 percent to EUR 36.8 million (in respective
period of 2014 - EUR 35.5 million). Increased revenues were determined by
reviewed distribution service prices adjusted based on gas consumption
forecasts. 

During the reporting period, the Company earned EUR 13.4 million in earnings
before interest, taxes, depreciation and amortization (EBITDA), which is 25
percent more than in January-September 2014, when its EBITDA was EUR 10.7
million. Net profit earned from the gas distribution activity during nine
months was 73 percent greater than at the same time of last year and totalled
EUR 6 million (compared to net profit from gas distribution activity of EUR 3.5
million during 9 months of 2014). Such changes were determined by better
performance results due to increased revenues and decreased costs. Net profit
of the Company in the past nine months, having added results of the continued
gas distribution and terminated gas supply activity, totalled EUR 85.5 million,
including profit of the terminated gas supply activity of EUR 82.1 million. 

During 9 months of 2015, the Company’s costs decreased by 5 percent compared to
the same period of last year totalling EUR 31 million (in January - September
of 2014 they were EUR 32.6 million, respectively). The total level of costs
decreased due to the reduction of repair and maintenance costs, salary expenses
and other costs. 

According to Liudas Liutkevičius, Chairman of the Board and CEO of Lietuvos
Dujos, structural and functional changes implemented in Lietuvos Dujos in one
year allowed achieving better performance results. 

“Improving indicators, rapidly increasing number of new customers, increased
net profit and continuously decreasing costs is the result, which we achieved
consistently implementing our activity refinement programme Changes made during
the year, greater focus on the efficiency of gas distribution activity,
attraction of new customers and faster connection to the network did not go
unnoticed in the market. Customer satisfaction service of customers of Lietuvos
Dujos conducted for the first time this year revealed that the satisfaction
index of natural gas customers (GCSI) was 80 points, exceeding average energy
utility norms of Europe and the world. Today we can boldly state that we are
already prepared for a new quality stage of life - a merger with electricity
distribution system operator Lesto and establishment of a single energy
distribution service company most convenient to customers, namely, Energijos
Skirstymo Operatorius (English: Energy Distribution Operator), ESO, – said
Liudas Liutkevičius, Chairman of the Board and CEO of Lietuvos Dujos. 

During nine months of this year, Lietuvos Dujos connected 2.5 thousand new
customers to its distribution network, which is 5 percent more than during the
same period of last year. The company’s investments made in nine months
totalled EUR 8.3 million, which is EUR 1.3 million, or 18 percent, more than in
9 months of 2014 (EUR 7.1million). The increase in investments in 2015 was
determined by increasing number of new customers connected to gas network and
growing scope of the construction of new gas systems as a result of that. Also,
more investments were made in reliability projects and reconstruction and
modernization of gas systems. 

In January-September, Lietuvos Dujos transported 4.6 terawatt-hours (TWh) of
natural gas, which is about 13 percent less than during the same period of last
year. Even though gas distribution volumes mainly decreased in energy and
industrial companies, gas distribution to private and minor business customers
remained stable. 

In the implementation of provisions of the EU Third Energy Package for the
unbundling of natural gas sector activities, assets, rights and obligations of
the natural gas supply activity were sold to UAB Lietuvos Duju Tiekimas as at
31 October 2014 under the contract on the purchase - sale of a part of
enterprise of AB Lietuvos Dujos of 15 October 2014. Therefore, the statement of
comprehensive income for 9 months of 2014 presents the supply activity as
terminated activity. Moreover, the comparative statement of comprehensive
income for 9 months of 2014 was restated taking into account the impairment of
fixed assets recorded in retrospect as at 31 December 2013 and other
regroupings of revenues and costs. 


         Head of communications Laura Šebekienė, tel. +370 633 99940

Attachments:

LD_2015_Q3_ENG.pdf