Lietuvos energijos gamyba, AB
Results of Lietuvos Energijos Gamyba for 9 months of 2018: the Company ensured the stability of its performance and financial indicators and started implementing new ideas
In January – September 2018, results of Lietuvos Energijos Gamyba, which is a part of the state-owned energy group Lietuvos Energija, were significantly affected by unpredictable natural conditions, important repair works planned in advance and the prices situation having formed in the electricity market.
Production in Kaunas Algirdas Brazauskas' Hydroelectric Power Plant has been decreasing significantly as a result of low water inflow since May, but since the first months of the year were extremely watery, the overall production volume of nine months remained quite similar. Kaunas Algirdas Brazauskas' Hydroelectric Power Plant produced 11 percent less electricity in 9 months of 2018 compared to 9 months of 2017 (0.283 TWh and 0.318 TWh, respectively).
Major repair works were carried out in Kruonis PSHP for the first time in the history of the power plant, leading to one of four units being unavailable for six month. Thus in 9 months of 2018, 18.4 percent less electricity produced in Kruonis PSPP was sold compared to in 9 months of 2017 (0.330 TWh and 0.404 TWh, respectively). Despite this, the power plant reliably provided power regulation and secondary reserve services. The demand of power for regulation nearly doubled compared to last year. Secondary reserve has been activated twice as much as in 9 months of 2017.
These months were also very active in the Elektrėnai complex. After the transmission system operator agreed to provide the tertiary active power reserve service using Unit 8 of the Elektrėnai complex at the time of repairs of the NordBalt interconnection with Sweden, the combined cycle unit reliably provided electricity system reserve, the so-called strategic reserve service, during this period, and increased the supply of electricity in the market. During this period, the unit was activated 8 times for commercial production. The Elektrėnai Complex produced a total of 0.066 TWh electricity in 9 months 2018 (compared to 0.129 TWh in 9 months 2017).
The power plants of the Company produced 20.3 percent less of electricity in 9 months of 2018 compared to the same period of last year (0.678 TWh and 0.851 TWh, respectively); however, high wholesale electricity prices formed throughout the entire period in the exchange, thus the Company’s income and profitability indicators remained stable.
“We continuously strive to improve our performance and make it more efficient, retaining stability of our activities, and to implement inovative ideas to withstand competition of modern producers of today. After the parent company Lietuvos Energija announced the performance strategy of the Group LE 2030 in May of 2018, we are planning to update our own strategy this year. We have already taken the first steps in the direction of the entire group” – said Eglė Čiužaitė, the Chair of the Board and CEO of Lietuvos Energijos Gamyba.
One of the first steps of the Company – its initiated project for the installation of the experimental solar power plant in the upper reservoir of Kruonis PSHP. The Company plans to implement this unique project in cooperation with scientists from Kaunas University of Technology. Having collected and assessed performance data of the experimental power plant, the possibility to cover the entire reservoir in the floating solar module structure will be considered. The implementation of the project would allow such a power plant to help exploiting the synergy of two renewable energy sources – sunlight and water currents – in the provision of services needed for the electricity system.
“The reliable and efficient provision of services necessary for the system in particular remains our key priority both in the remaining months of 2018 and looking into 2019 and subsequent years”, – said the CEO of the Company E. Čiužaitė.
Key performance indicators of Lietuvos Energijos Gamyba in the 9 months of 2018:
- Sales income of the Company in the 9 months of 2018 remained stable and totalled EUR 94.7 million (9 months of 2017: EUR 96.7 million). In the 9 months of 2018, the Company’s income totalled EUR 96.5 million and was 1.2 percent lower than in the 9 months of 2017 (EUR 97.6 million). With the wholesale electricity price increased in the market, the income earned in the 9 months of 2018 in Kaunas A. Brazauskas’ HPP and Kruonis PSHP partially compensated the sales income, which the Company lost due to decreased income from the regulated activity of Elektrėnai Complex compared to the last year.
- In the 9 months of 2018, the Company incurred EUR 13.3 million in operational expenses, which is 7.9 percent less than in the 9 months of 2017 (EUR 14.5 million). Operational expenses reduced due to lower repair and maintenance expenses.
- The adjusted (comparative) EBITDA* of the Company in the 9 months of 2018 totalled EUR 37.9 million and remained relatively stable as in the 9 months of 2017 (EUR 38.4 million). This was determined by higher sales revenue in Kaunas A. Brazauskas’ HPP and the result of effective activities and the services provided in the Kruonis PSHP.
- Net profit of the Company totaled almost EUR 26.8 million in the 9 months of 2018 and was 35.9 percent higher than net profit in the 9 months of 2017 (EUR 19.7 million). Net profit of the Company increased as a result of lower costs of amortization and depreciation and the gains from revaluation of emissions allowances.
- In the 9 months of 2018, the Company invested EUR 3.8 million in non-current tangible and intangible assets. The majority of this amount was designated for major repairs of the Kruonis PSHP. Investment of EUR 1.3 million was made in the 9 months of 2017.
* The Company’s EBITDA results are presented after adjustments made by the management, eliminating the income of one-time factors. These adjustments are aimed at disclosing the results of ordinary activities of the Company, without atypical, one-time factors or factors that are not directly related to the current operating period. All the adjustments made by the management are disclosed in interim and annual reports of the Company.
Valentas Neviera, Lietuvos Energijos Gamyba, Head of Communication Division
Tel. +370 670 25997, e-mail firstname.lastname@example.org