Lietuvos Energija enters a new stage of operations with financial performance retained at a stable level
Vilnius, Lithuania, 2018-02-28 17:29 CET --
During four quarters of 2017 the state-owned group of energy companies Lietuvos Energija (the Group) achieved and retained stable financial performance. Irrespective of decline in electricity and gas transmission prices for customers the Group’s revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) did not change significantly compared to 2016, i.e. revenue decreased by 1% and adjusted EBITDA grew by 1% and amounted to EUR 236 million.
Stable performance was mainly determined by a 5% drop in operating expenses, improvement of operational efficiency as well as diversification of operations that ensured higher revenue from trade in electricity and gas. Return on equity (ROE) ratio of Lietuvos Energija reached 9.6% in 2017.
“Results of operations of Lietuvos Energija prove that the first stage of the company’s transformation has been successful. Implemented changes ensured a stable financial growth and solid return to the shareholder – the State of Lithuania. The identification of the highest-value activities, improvement of operational efficiency and successful implementation of development projects enabled to consistently reduce energy prices for customers, enhance the quality of currently existing services and offer new ones. A stable basis for further modernisation and transformation of the company was secured during this period. Key priorities of the new stage of operations will include focus on customer needs, particular attention to innovations, continued identification and development of the highest-value activities. Our aim is for Lietuvos Energija to become a smart and competitive player in the global market making a significant contribution towards the creation of welfare of Lithuania and its people”, says Darius Maikštėnas, CEO and Chairman of the Board of Lietuvos Energija.
Key indicators of the Lietuvos Energija group for Q1–4 of 2017:
The Group’s revenue amounted to EUR 1,096 million, which is 1% less compared to EUR 1,102 million earned during Q1–4 of 2016. This followed from reduction in energy and gas transmission and distribution prices for customers;
Operating expenses amounted to EUR 130 million, which is 5% or EUR 6 million less compared to EUR 136 million during Q1–4 of 2016. Lower operating expenses resulted from the improvement of operational efficiency;
The Group‘s adjusted EBITDA increased by 1% and totalled EUR 236 million compared to EUR 235 million during Q1–4 of 2016. The main factors causing this change included a higher EBITDA of electricity and gas distribution activity, lower operating expenses and improved operational efficiency;
The level of the return on equity ratio remained high and was equal to 9.6% compared to 9% in 2016;
The Group‘s adjusted net profit amounted to EUR 128 million, which is almost 9% more compared to EUR 118 million during Q1–4 of 2016;
Investments amounted to EUR 253 million, which is 5% more compared to EUR 241 million during Q1–4 of 2016. Without taking into consideration the acquisition of the wind farms in 2016, investments increased by 43% or EUR 76 million compared to Q1–4 of 2016. Investments were mainly allocated for the maintenance (51%) and development (21%) of the electricity distribution network.
*The Group’s EBITDA and net profit is adjusted (1) by eliminating deviation between actual and regulated revenue, by which the Group‘s future financial results will be adjusted; (2) by eliminating gas price discount expenses that are related to the previous periods.
Corporate Communications Department of Lietuvos Energija
Phone: (8 633) 99940