Lietuvos energijos gamyba, AB - Notification on material event

Preliminary unaudited financial indicators of “Lietuvos energijos gamyba”, AB of January–September 2015

Elektrėnai, Lithuania, 2015-11-16 15:00 CET (GLOBE NEWSWIRE) -- “Lietuvos
energijos gamyba”, AB (legal entity's code 302648707, registered at Elektrinė s
g. 21, Elektrėnai, hereinafter - Company) announces its preliminary unaudited
financial indicators for the period of January-September 2015: 

  -- According to preliminary unaudited data, in January-September 2015 the
     Company's sales revenue was EUR 168.06 million, which is 7.2% smaller than
     in January-September 2014 (EUR 181.15 million).
  -- Preliminary unaudited profit before interest, tax, depreciation and
     amortisation (EBITDA) of the Company of January-September 2015 was EUR
     39.19 million, which is 19.0% smaller in the period of January-September
     2014 (EUR 48.36 million).
  -- Preliminary unaudited net profit of the Company earned in January-September
     2015 was EUR 26.46 million or 5.4% smaller than the net profit of
     January-September 2014 (EUR 27.96 million).

Decision of the National Commission for Energy Control and Prices (hereinafter
- NCC) not to recognise a part of the proceeds from regulated activities has
had the major negative impact on the Company's performance in January-September
2015. Considering NCC's decisions regarding findings of the Company's
performance inspection in 2010-2012 and recognising the Company as an important
player on the electricity generation market, funds of public service
obligations (hereinafter - PSOs) assigned for the Company are decreasing, same
as the proceeds from reserve capacity assurance services. 

“Following auditors' recommendations, we do not include these proceeds into the
interim financial reports of 2015 but we continue actively defending our
position for their recognition, applying for abolition of the above-mentioned
NCC's decisions in court. According to preliminary calculations, if removing
the impact of the decisions in question on performance results, the Company's
EBITDA would amount to about EUR 50 million in January-September 2015. It would
be bigger than during the same period last year, despite even decreased volumes
in commercial electricity generation”, said Chairman of the Board and Chief
Executive Officer of “Lietuvos energijos gamyba” Juozas Bartlingas. 

Generation at Kaunas Algirdas Brazauskas' Hydroelectric Power Plant, which is
considered as commercial activity, was declining this year due to
record-breaking small water content in the River Nemunas. In January-September
2015, the power plant produced 16.4% less electricity than during the same
period last year. 

According to the Head of the Company, more efficient subsidised electricity
generation in Elektrėnai complex, as well as successful efforts to cut down
operating and servicing costs had positive impact on performance results of
January-September 2015 and allowed to save consumers' costs via PSOs. 

In Elektrėnai, where electricity was generated from mid-April until mid-October
in order to ensure safe supply during the warm season, almost one fourth more
subsidised electricity was produced this year. If compared with the same period
in 2014, electricity generation efficiency in Elektrėnai  complex in
January-September 2015 was about 9% higher. 

If comparing the Company's performance results in January-September 2015 with
the performance of the same period in 2014, the payback of outsourcing
functions of procurement, accounting and employment relations administration is
obvious, furthermore, costs of lease, transport, public utilities and other
services also experienced decrease. 

Unaudited interim consolidated financial reports and Company's financial
reports for January-September 2015 will be published on 27 November 2015. 


         Valentas Neviera, Head of Corporate Communication Division of
“Lietuvos energijos gamyba”, AB, phone +370 670 25997, email:
valentas.neviera@le.lt