Financial Statement Release
JSC "Latvijas Gāze” unaudited financial statements 2016: Company Successfully Begins Natural Gas Trading In Neighbouring Countries
The year 2016 saw a low price level on the natural gas market, which helped increase the sales volume by 14%. Under the influence of the natural gas price, the revenue dropped by 11% against the previous year and amounted to 392.3 million euros. However, the EBITDA*, owing to the sales volume, grew by 11% to 76.5 million euros. The company’s net profit in the past year was 37.5 million euros, up from 30.5 million euros in 2015.
The performance was boosted by the inception of natural gas trading in the neighbouring countries, which was a strategic step by Latvijas Gāze to get acquainted with the open market and competitive circumstances. The customers abroad were sold 132 million cubic metres of natural gas or 9% of the total annual sales volume. The Latvian consumers were sold 1.375 million cubic metres of natural gas, which is 4% more than in 2015.
The investment amount in 2016 remained at the level of previous years – 29.6 million euros. Latvijas Gāze still prioritises safety and makes further investments in the modernisation of infrastructure to improve efficiency and reduce the environmental impact.
Nevertheless, the year 2016 also saw a decrease by 2.1 million euros in the profit gained from the transmission and storage services spun off. This primarily stems from the decrease in storage volumes and the tariffs which have not changed since 2008.
Latvijas Gāze is actively getting ready for the opening of the natural gas market on April 3. Legal entities will receive offers of further cooperation in March, while households will have an option to keep receiving natural gas for a tariff approved by the PUC.
* EBITDA – earnings before interest, corporate income tax, depreciation and amortisation, and impairment of fixed assets.
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