Lietuvos energija, AB - Interim information

Consolidated interim financial information of Lietuvos energija for the 12 months of 2012

Elektrėnai, Lithuania, 2013-02-28 13:39 CET (GLOBE NEWSWIRE) -- Net profit for
the Lietuvos Energija group of companies* (hereinafter referred to as the
Group) in 2012 totalled 36 million LTL and was eighteen times larger than in
2011, when it equalled two million LTL. The Group's revenue, in comparison to
the previous year, increased by fourteen million LTL and totalled 1.444 billion
LTL (1.430 billion LTL in 2011), while expenses decreased by 27 million LTL to
1.389 billion LTL. 

Lietuvos Energija's profit increase is primarily attributed to successful
commercial activity in the free market and efficient operational management,
which helped reduce regulated activity losses. Although competition in the free
market increased sharply, the Group of companies' sales within it increased by
more than a fifth, which helped offset decreased sales to Lesto, according to
Lietuvos Energija managing director Dalius Misiūnas. 

The Group's pre-tax profit from commercial activity in 2012 equalled 58 million
LTL before taxes, while losses from regulated activity totalled thirteen
million LTL. 

Compared to 2011, in 2012 the Group's EBITDA doubled, equalling 137 million
LTL. With profitability indicators improving twofold, the EBITDA margin
equalled 9.5 percent. 

Elektrėnai ensured the security of the electricity supply

The general trend in the electricity market in 2012 was an decrease in prices.
This was particularly influenced by the prices that developed in the Estonian
and Finnish Nord Pool Spot (NPS) pricing zones. 

In the Finnish NPS pricing zone, the average price of electricity in 2012
equalled 126.98 LTL/MWh and was 26 percent lower than in 2011. In the Estonian
NPS pricing zone, last year the price equalled 135.53 LTL/MWh and, compared to
the average price in 2011, was almost ten percent lower. 

Meanwhile, prices in the Lithuanian electricity exchange during this period
were fairly stable (the average price of electricity was one percent lower than
in 2011 and equalled 154.21 LTL/MWh). Since NPS became the administrator of the
Lithuanian electricity exchange on 18 June 2012, Lithuanian and Latvian
companies trade not through the Estonian exchange but through the Estonian and
Latvian power grid's ELE exchange area. During the months of June - December
2012, the average price in the NPS ELE zone equalled 144.05 LTL/MWh. 

Nevertheless, according to D. Misiūnas, although prices did decrease,
unexpected spikes were unavoidable in 2012. Ensuring supply security and
controlling price fluctuations in such cases was made possible by the reliable
operation of power plants belonging to Lietuvos Energija, especially the
reserve power plant in Elektrėnai. 

For example, the January-February records in both 2010 and 2011 were broken by
the Lithuanian exchange's price, which increased to 348.72 LTL/MWh due to a
noteworthy cold spell and increased electric power demand during the first ten
days of February 2012. Later in Elektrėnai, more was produced at the end of the
summer; during this time, on 20 August, the price on the Lithuanian electricity
exchange grew to the highest level in the history of the exchange and peaked at
692.60 LTL/MWh. This price increase, according to data from Litgrid, the
transmission system operator, resulted from an unplanned disconnection of a
transmission line in Russia that has a significant effect on the ability to
import electric power in Lithuania and Latvia. 

More electricity was produced

In total, power plants operated by Lietuvos Energija produced in 2.21 TWh of
electric power in 2012, or nine percent more than in 2011. Demand for electric
power in Lithuania did not change much during this period and equalled 10.6
TWh. 

In Elektrėnai in 2012, 1.42 TWh of supported electric power production was
produced, or 29 percent more electric power than in 2011. Meanwhile, production
in other power plants belonging to the company decreased during this period. 

Production at the Kruonis Pumped Storage Plant decreased twelve percent
compared to 2011. The scope of electricity production at the Kaunas
Hydroelectric Power Plant during the period mentioned fell by twenty percent
because the average flow rate of the Nemunas River was significantly lower than
the multi-year average. 

More was sold in the free market

The Group successfully took advantage of the possibilities provided by another
market-freeing stage that ended on 1 January 2012, when users whose maximum
capacity exceeded 30 kW were able to choose independent suppliers. The quantity
of electric power sold in the free market increased by nineteen percent in 2012
compared to 2011, to 2.45 TWh. Meanwhile, sales of electric power to LESTO AB
decreased by sixteen percent due to the ever-increasing number of users who
chose independent electric power suppliers. Energijos Tiekimas, a company
belonging to the group, served the most free market users, approximately 35-40
percent. 

During 2012, the number of users of “Green Lithuanian Energy” produced by the
Kaunas Hydroelectric Power Plant also grew. Energijos Tiekimas supplied
electric power produced from renewable resources to ten legal entities and one
natural person, who collectively used approximately twenty percent of the green
energy produced by the Kaunas Hydroelectric Power Plant. 

The largest investment project was completed

In 2012, Lietuvos Energija completed the combined cycle unit project in
Elektrėnai on time and within the framework of the planned budget. Construction
took three years, and the total value of the project equalled 1.3 billion LTL.
It is planned that the unit, which uses 30 percent less natural gas than the
power plant's old units, will produce the majority of the electric power
produced in Elektrėnai in 2013. Due to the higher efficiency of the new unit
and reduced production quotas, more PSO funds will be saved in 2013. 

The Group's investment in long-term material assets in 2012 equalled 181
million LTL (whereas in 2011 it was 271 million LTL). During both periods, the
greatest part of the investment was made up of investments in the combined
cycle unit project. 




         Ernesta Dapkienė
         Head of Corporate Communication
         Lietuvos energija, AB
         Elektrinės St. 21
         Elektrėnai
         Tel. +370 528 33696
         ernesta.dapkiene@le.lt

Attachments:

Lietuvos energija consolidated 2012 interim financial statement.pdf

Priedai_EN.pdf