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Published: 2018-10-30 17:21:20 CET
Energijos Skirstymo Operatorius AB
Interim information

ESO's three quarter of 2018 results: rising investment and better grid reliability results

Energijos Skirstymo Operatorius AB (hereinafter – the Company), identification code 304151376, registered office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 894 630 333; ISIN code LT0000130023.

During three quarters of the current year, electricity and gas distribution company Energijos Skirstymo Operatorius (ESO) under the management of the largest in the country group of energy companies Lietuvos Energija made further investments into reliability enhancement of the distribution grid. ESO investments into the electricity and distribution grids have exceeded EUR 191 million. The number of new customers using electricity has grown by nearly one tenth. Investments into construction and reconstruction of the gas systems have also been record-breaking – more than EUR 36 million euros using which nearly 400 km of distribution gas pipelines have been installed.

During the last several years ESO investments have given huge benefit to customers; they also ensure reliability of the grid. This year, average power outage duration has shortened up and grid faults are rectified more expeditiously. Such positive effect was a result of ever increasing investments into the underground electricity grid more resistant to natural disasters.

“By the end of the year we plan to match the need for investments into grid renewal and to ensure its reliability with optimal infrastructure costs for each energy consumer. Although wholesale electricity costs have increased, ESO will seek further to ensure not only the best distribution price in the region, modernisation and reliability of the grid at rational costs, but also to invest into enhancement of its smartness and digitization,” told ESO Chairman of the Board and CEO Mindaugas Keizeris.

Key indicators:

ESO income during 2018 January-September changed insignificantly. During the three quarters they amounted to EUR 455.6 million and were 2.1 % higher than the corresponding time in 2017. The change was driven by rising distribution of energy for customers and  natural gas distribution. Stable income are driven by electricity distribution.

The cost of electricity, natural gas and related services during the nine months of this year amounted to EUR 326.5 million and were 18.3 percent higher than the corresponding time in 2017. The biggest impact was felt due to prevailing relatively high electricity cost in Scandinavia and the Baltic region.

During January- September 2018, ESO earned EUR 121.4 million of adjusted profit before interest, taxes, depreciation and amortisation (adjusted EBITDA*) – 16.3% more than at the same time in 2017, when the indicator was EUR 104.4 million.

During the nine months of this year, ESO's investments in electricity and gas distribution networks amounted to EUR 191.6 million – 41.3% more than during the same time last year when it invested EUR 135.6 million. The largest share of investments – EUR 88.6 million – was dedicated for renewal of electricity distribution network. This amount was 21.9 percent higher than last year.

In the three quarters of the year, ESO has secured its customers more reliable electricity supply. With the influence of natural phenomena ("force majeure"), system average interruption duration index (SAIDI) during the three quarters of 2018 for one user was 66.98 minutes and compared to the same time of 2017, it decreased by as much as 47.96 minutes. The system average interruption frequency index (SAIFI) with the effect of "force majeure" during the three quarters of 2018 was 0.91 times – 0.11 times less than in 2017.

*The Company’s preliminary EBITDA are reported after the adjustments made by management by eliminating the impact of one-off factors. These adjustments are made aiming to disclose the results of the Company’s operating activities after the elimination of the impact of non-typical, one-off factors or factors that are not directly related to the current reporting period. All adjustments made by management are disclosed in the Company’s interim and annual reports.

Person for contacts: Representative for Public Relations Tomas Kavaliauskas, tomas.kavaliauskas@eso.lt, tel. +370 617 51616.

Attachments


2018 09 30 ESO Presentation ENG.pdf
ESO FA IIIQ EN.pdf