LITGRID - Interim information

Litgrid Group’s results for the first half of 2014 announced

Vilnius, Lithuania, 2014-08-29 07:12 CEST (GLOBE NEWSWIRE) -- In the first half
of 2014, the Litgrid Group's total revenue was LTL 217.5 million, 15% smaller
than in the corresponding period of 2013. The largest share, 47% or LTL 102.6
million, of the Group's revenue is comprised of revenue from power
transmission. A drop of almost 17% was recorded in revenue from trade in
balancing-regulation power, while revenue from system services fell by more
than half, 54%. 

“Lower income from sales of balancing-regulation power reflects a more
responsible behaviour of the suppliers of balancing energy and the lessons
learnt from the previous year - they buy balancing energy from the system
operator in very rare cases only and instead try to secure these services at
the power exchange,” commented Mr. Rimantas Busila, member of the Management
Board and the Director of the Finance Department at Litgrid. 

A minor drop in the Group's expenses was recorded during the reporting period
compared with the first half of 2013, showing decrease of 11% in procurement of
power and related services as well as costs of telecommunication and IT
systems. Costs related to the procurement of power and related services
comprised the major share of the Group's expenses constituting LTL 86 million
or 38%. The Group's EBITDA In the first half of 2014 was LTL 63.2 million;
EBITDA margin fell from 37.6% in the first half of 2013 to 29%. 

Loss before taxes of the Litgrid Group for the first half of 2014 was LTL 9.2
million, the loss resulting from system services and power transmission
operations. 

“The results of individual operational segments depend on the specifics of
regulatory scheme, where the result of the previous year influence the prices
for transmission and system services of the coming year. In other words, our
profit from the previous year becomes a loss in the coming period because the
national regulator (the National Commission for Energy Control and Prices) sets
a tariff for the subsequent reporting period so that the part of the profit
“returns” to the electricity consumers through a smaller tariff,” Mr. Busila
explains. 

“In my opinion, current regulatory mechanism that will remain in power until
the end of this year is not balanced enough and determines the loss regardless
of operations of the company, nor taking account of the corporate assets that
are used ore being created. An extensive professional discussion of the issue
is needed,” Mr. Daivis Virbickas, Chairman of the Board and the CEO of Litgrid
says. 

In the first half of 2014, Litgrid transmitted 4,541 million kilowatt hours of
electricity via high voltage transmission networks for domestic consumption,
the volume being 1.8% smaller than in the first half of 2013. 

The largest share of investments in the first half of the year was related to
the implementation of strategic projects constituting LTL 62.3 million or 67%
of total investments. Investments into the reconstruction and expansion of the
transmission network amounted to LTL 31.3 million accounting for 33% of total
investments. 






         Vilija Railaitė
         Head of Communications
         Phone +370 5278 2361
         Mobile +370 613 19977
         E-mail vilija.railaite@litgrid.eu

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