Energijos Skirstymo Operatorius AB - Notification on material event

Preliminary ESO results for nine months of 2016: net profit up by 11.1% to EUR 72.4 million

Energijos Skirstymo Operatorius AB (hereinafter – the Company or ESO),
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 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 nine months of 2016, based on preliminary unaudited
financial statements, earned EUR 72.4 million net profit. 

Compared with nine months of 2015 LESTO and Lietuvos Dujos consolidated net
profit, which amounted to EUR 65.2 million, this is 11.1% more. Net profit
increased due to increased revenue and reduced operating costs. 

ESO revenue during January-September of 2016 amounted to EUR 478.8 million and,
compared to the same period of 2015, increased by 2.3%, when LESTO and Lietuvos
Dujos consolidated revenue was EUR 468 million. 

During January-September of 2016 ESO EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) amounted to EUR 122.9 million – 9.2% more
compared to the same period of 2015, when LESTO and Lietuvos Dujos consolidated
EBITDA was equal to EUR 112.6 million. 

"In the third quarter of this year we have achieved even more impressive
results. The main reason, which led to even better financial indicators –
increased positive effect of merged two companies synergy. ESO operational
efficiency is an ongoing process and with its final results we create added
value to customers by ensuring reliable, convenient and high-quality services.
We continue searching for untapped potential of operational efficiency.
Consequently at the end of the autumn universal - electricity and gas -
operational crews started operations, and as of next year Operational
Excellence Program based on the on the principles of Lean will commence in the
Company, " –  said acting Chief Executive Officer of ESO Mrs. Dalia
Andrulionienė. 

ESO interim report for the nine months of 2016 is due to be published on 30
November. 


         Representative for Public Relations Martynas Burba, tel. (8~5) 2514516.