Klaipedos Nafta - Interim information

Interim financial information regarding the nine months of 2016

AB Klaipedos Nafta (hereinafter – the Company) announces the interim condensed
financial statements for the nine months period ended 30 September 2016. 

AB Klaipedos Nafta sales revenues for the period between January – September of
2016 reached Eur 80.3 million; it has increased by 1.8 per cent compared to the
same period of 2015 – Eur 78.9 million. The net profit of the Company for the 9
months of 2016 amounts to Eur 13.0 million and is lower by 0.8 per cent
compared to the same period of 2015 – Eur 13.1 million. Profit before tax,
interest, depreciation and amortization (EBITDA) for the 9 months of 2016
comprise Eur 24.3 million and is lower by 2.8 per cent, comparing to the same
period of 2015 when it was Eur 25.0 million. 



Management comment:

The Company‘s management commenting the preliminary financial results first of
all notes that results of the Company’s activities have significantly
increased. Despite the fact that in the 3rd quarter of 2016 the Company faced
external factors challenges related to oil refinery limitations for the
Byelorussian clients, oil products transhipment during the 3 quarters of 2016
comprised 5.7 million tons that is by 25 per cent more comparing to the same
period in 2015. The increase in transhipment volumes was influenced by these
factors: 

  -- Increased oil product cargos of the main clients – Byelorussian refineries
     and AB ORLEN Lietuva;
  -- Professional work with the strategic partners;
  -- Effective management of the increased oil products cargos.

It must be noted that changed situation in the oil products transhipment market
have modified the pricing of the services. And this is the main cause that
revenues from oil products transhipment have not increased at the same level as
transhipment volume. 

LNG terminal regasification volume in the first 3 quarters of 2016 was 12.2
million MWh or by 3.3 times more comparing to the same period of 2015.
According to the Company’s management LNG terminal results represent the market
needs. This year more gas were imported via LNG terminal than via pipeline from
Russia. Since 2014 after LNG terminal created alternative gas supply source for
Lithuania, Latvia and Estonia gas prices in these countries correlate with the
global gas prices. This is a great advantage in the Baltic region which has
been dependent from the monopoly gas supplier. 

It is important to mention that revenue level from the LNG terminal activity is
calculated based on legal regulation as to the laws of the Republic of
Lithuania so it is not sensitive for the activity volume changes. 

AB Klaipedos nafta financial results for the 9 month of 2016 prove stable and
effective performance of the Company. Despite the fact that activities of the
Company have significantly increased, strategic oil terminal infrastructure
projects are under construction, LNG reloading station is under construction
and new projects related with LNG activities are initiated, the Company managed
to control its costs and ensure high return for the shareholders. For the
analyzed period the return on equity was 9.1 per cent that is by 1.7 percentage
point more comparing to the same period of 2015. 



Unaudited interim financial statements for the 9 months of 2016 and financial
results presentation are enclosed. 


         Marius Pulkauninkas, Director of Finance and Administration
Department, tel. 8 46 391763

Attachments:

KN_veiklos rezultatai_EN.pdf

IFRS_2016_EN_Q3.pdf