Results of Lietuvos Energijos Gamyba for 3 months of 2018 - 3 percent increase in generation of electricity and revenue
Lietuvos Energija Gamyba, which is a part of Lietuvos Energija Group, generated more electricity in the first quarter of 2018 and successfully sold it on the exchange. This increased the Company's revenue and improved its profitability indicators.
“The very watery period continued in the beginning of 2018 - in the first 3 months, the Nemunas River supplied even more water to Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant than in the record-high beginning of 2017. This allowed the power plant to generate more electricity. Volumes of electricity generation in Kruonis Pumped Storage Hydroelectric Power Plant, which was managed efficiently in light of the market conditions, were also higher” - Eglė Čiužaitė, the Chair of the Board and CEO of Lietuvos Energija Gamyba commented the performance of the Company’s power plants in the 3 months of 2018 and the results achieved during this period.
According to her, a significant drop in air temperatures in February and March created favourable conditions for the activities of all the power plants owned by the Company, especially for the sale of electricity which they generated. As a result, the demand for electricity increased significantly on the exchange. In presence of such a situation, the market also felt the need for the combined cycle unit in Elektrėnai. During the very cold period, the unit produced electricity for almost two days, also ensuring the provision of the tertiary reserve service necessary for the energy system.
During the 3 months of 2018, a total of 250 GWh was generated in the power plants of the Company and sold, which is 3 percent more than in the 3 months of 2017 (242 GWh). Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant having taken advantage of the very watery first months of the year generated the most electricity – 134 GWh, which is almost 1 percent more than in the 3 months of 2017, when it generated 132 GWh electricity. Electricity generation in the Kruonis PSP also increased in the first three months of 2018 and was 108 GWh, which is almost 4 percent more than in the first 3 months of 2017 (104 GWh). The combined cycle unit in the Elektrėnai complex generated 8 GWh electricity (compared to 6 GWh in the 3 months of 2017).
Key indicators of Lietuvos Energija Gamyba of the 3 months of 2018:
- The Company's sales revenue of the first 3 months of 2018 was EUR 32.6 million, which is 2.6 percent more than the sales revenue in the 3 months of 2017 (EUR 31.8 million). In the first 3 months of 2018, the Company’s revenue was EUR 33.1 million, which is 3.2 higher than in the 3 months of 2017 (EUR 32.1 million) The increase in revenue was mainly affected by higher production in Kaunas A. Brazauskas’ HPP and Kruonis PSP and significantly increased price of electricity on the exchange as a result of cold weather (in the 3 months of 2018, the average price of electricity in the NordPool’s Lithuanian price zone was by as many as 21.6% higher than the average price in the 3 months of 2017).
- The Company managed to maintain stable operating expenses: in the first 3 months of 2018, the Company incurred EUR 4.2 million in expenses just like in the 3 months of 2017.
- The adjusted (comparative) EBITDA* of the Company was EUR 14.7 million in the 3 months of 2018, which is 1.1 percent more than in the beginning of the previous year (when adjusted EBITDA was EUR 14.5 million).
- Net profit of the Company in the first 3 months of 2018 was almost EUR 14 million, or 3.5 time higher than the net profit in the first 3 months of 2017 (EUR 4 million). Net profit of the Company increased as a result of higher electricity sales revenue, lower amortization and depreciation expenses, and a positive result of revaluation of emissions allowances (this factor contributed EUR 6.2 million to net profit of the first 3 months of 2018, and it accounted for EUR 3.8 million in additional expenses in the performance results of the 3 months of 2017).
- In the 3 months of 2018, the Company invested EUR 2.5 million in non-current tangible and intangible assets, while this investment in the 3 months of 2017 was EUR 0.2 million. Most of the sum in January-March 2018 was intended for the major repairs of the second hydro unit of Kruonis PSHP.
* The EBITDA results of the Company are presented after the adjustments made by the management, eliminating the impact of one-time factors. The purpose of these adjustments is to disclose the results of the Company's ordinary activities, without atypical, one-time factors directly unrelated to the current operating period. All management’s adjustments are disclosed in interim and annual reports of the Company.
Valentas Neviera, Head of Communication Division at Lietuvos Energijos Gamyba, AB, tel. +370 670 25997, e-mail: email@example.com