2012-08-29 15:12:23 CEST

2012-08-29 15:13:29 CEST


REGULATED INFORMATION

Lithuanian English
Lietuvos energija, AB - Interim information

Operating Results of Lietuvos energija, AB for the first 6 Months of 2012 


Elektrėnai, Lithuania, 2012-08-29 15:12 CEST (GLOBE NEWSWIRE) -- 
   Lietuvos Energija Group is reinforcing its position in the free market for
                                  electricity

 Lietuvos Energija, a national power generating company, is continuing its
efforts to reinforce the company‘s position in the free market for electricity.
In the first six months of 2012, it increased its electricity generation
volumes by 2% compared with the same period of previous year, whereas the
Group‘s electricity sales in the free market grew 48%. 

Lietuvos Energija Group* includes all the state-controlled power generation
capacities in Lithuania, i. e. the Lithuanian Power Plant in Elektrėnai (LEL),
Kruonis Hydro Pumped Storage Plant (Kruonis HPSP), and Kaunas Hydro Electric
Power Plant (Kaunas HEPP). The amount of electricity generated by all these
plants during the first 6 months of 2012 totals 0.879 TWh. 

In the said period, LEL increased its power generation volumes 26% compared
with the same period of previous year; 0.46 TWh of electricity was produced at
LEL. Due to a situation in the market where purchasing on the electricity
exchange was more lucrative than transforming the night-time electricity into
the day-time one, the power generation volumes at the Kruonis HPSP dropped 6%.
Generation at the Kaunas HEPP decreased 26% due to the lower level of water in
the Nemunas River. 

“In the first quarter of this year, we generated more electricity due to
increased demand because of the cold winter, whereas in the second quarter it
was better to buy electricity in the market as the price was low. Daily
production planning, taking the demand for electricity and market prices into
consideration, enabled us to offer a competitive electricity price to
customers“, Dalius Misiūnas, General Manager of Lietuvos Energija, comments the
operating results of the six months of 2012. 

Income

In the first six months of 2012, income of the Group increased 5% compared with
the same period of 2011: from LTL 635 million to LTL 665 million. This has
resulted from a larger amount of electricity sol din the free market (0.96 TWh
or 48% more than in the first half of 2011). 

About 40% of all customers in the free market bought electricity from Energijos
tiekimas UAB, which is one of the Group‘s companies, as of the end of the first
6-month period of 2012. 

While electricity sales to LESTO decreased 20% due to the larger number of
customers that opted to choose independent suppliers, electricity sales in the
free market grew as much as 48%, therefore, the total volume of sales to
suppliers in 2012 remained practically the same as in 2011. 

Regulated and Commercial Operations

Income from regulated activities, i. e. subsidised electricity generation at
LEL, heat generation, and LEL and Kruonis HPSP power reserving services
accounted for 46% of all income of the Group. The Group‘s loss on regulated
activities before tax was LTL 5 million. LEL does not earn profit on power
generation, thus only the income from Kruonis HPSP power reserving services had
a positive effect on the result of regulated activities. 

Net profit from commercial activities consisting of the power generation at
Kruonis HPSP and Kaunas HEPP, wholesale and retail trade in electricity in the
free market, and other commercial services for the months of 2012 amounted to
LTL 35 million (before tax). 

Profitability Ratios

In the first 6 months of  2012, the Group‘s EBITDA was LTL 69 m, net profit LTL
26 m, EBITDA margin 10%, and net profitability 4%. The decrease in
profitability ratios compared with 2011 was influenced by the higher
electricity generation volumes at LEL, lower generation volumes and the hydro
power plants, and stronger competition in the retail market for electricity. 

For more information You can find in attachments.


         Ernesta Dapkienė
         Communication Manager
         Lietuvos energija, AB
         Elektrinės g. 21
         Elektrėnai
         Tel. +370 528 33696
         e-mail: ernesta.dapkiene@le.lt