Published: 2019-04-30 15:20:34 CEST
Energijos Skirstymo Operatorius AB
Interim information

Results of ESO of Q1 2019: a stable increase in investments and a steady flow of new customers

AB Energijos Skirstymo Operatorius (hereinafter – the Company), code 304151376, registered office address Aguonų g. 24, Vilnius, the total number of ordinary registered shares issued by AB Energijos Skirstymo Operatorius - 894 630 333; ISIN code – LT0000130023.

The electricity and gas distribution company Energijos Skirstymo Operatorius (ESO) owned by the largest energy group Lietuvos Energija, UAB, ended the first quarter of 2019 with continuously growing investments in the development and renovation of electricity and gas networks, which were 13.5 percent higher than last year. The growth of investments in the construction and reconstruction of gas distribution systems, which was nearly 90 percent compared to the same period of 2018, is noteworthy in particular. The Company also recorded the continuously increasing number of new customers connecting to the distribution networks.

“We started year 2019 with a slight increase in investment and decreased revenue, which was due to the unbundling of the public supply activity and growing electricity prices on the exchange. Meanwhile, investments, which disproportionately grew last year, are made according to the planned scopes this year in both the implementation of new plans and the completion of the previously started projects.

Following further refinement of its activities, ESO decided to give certain commercial activities up, focusing on the activities of the gas and electricity distribution operator”, says Mindaugas Keizeris, the Chairman of the Board and CEO of ESO.

By constantly reducing the time necessary for connecting to the distribution networks, ESO continued recording a leap in the number of new customers. In the first quarter of the year, ESO concluded agreements for connecting 8 1000 new customers to the electricity distribution network, which was almost 6 percent more compared to the same period of last year, when 7 700 agreements were signed.

2 500 customers wanted to be connected to the distribution networks – this is the number of residents and companies having concluded agreements with ESO. This is 30 percent more than last year, when 1 900 agreements were signed. In January – March 2019, ESO built 94.2 km of distribution pipelines for all new gas customers, which is slightly less compared to last year, when 116.6 km of gas pipelines were built.

Key indicators:

• In January-March 2019, ESO’s revenue decreased. It totalled EUR 143.1 million in Q1 2019 compared to EUR 167.4 million at the same time last year. This was mainly due to discontinued public electricity supply as from 1 October 2018. Having eliminated the impact of discontinued activities, the revenue of Q1 2019 would be 1.7 percent higher compared to the same period of 2018. This change was due to increased electricity transmission prices. Electricity transmission is the main source of ESO revenue.

• In the first three months of this year, the costs of purchase of electricity, natural gas and related services totalled EUR 73.73 million and were 34.5 percent lower compared to the respective period of 2018. This was mainly due to the public electricity supply activity sold on 1 October 2018 and a lower price of services of public interest, which the NCC set for 2019.

• Lower costs of electricity, gas and related services due to discontinued public electricity supply activity as from 1 October 2018 and lower price of services of public interest set by the NCC for 2019 affected net profit indicators of the Company. It totalled EUR 15.9 million in Q1 of this year compared to EUR 11.3 million last year.

• In January – March 2019, ESO earned EUR 53.206 million in earnings before interest, taxes, depreciation and amortization (adjusted EBITDA *), which is 12.0 percent more than at the same time in 2018, when this indicator totalled EUR 49.087 million.

• In the first three months of this year, ESO investments in electricity and natural gas distribution networks totalled EUR 46.350 million, which is 13.5 percent more compared to the same period of last year, when this investment was EUR 40.831 million. The major share of investment – EUR 13.960 million – was made in the renovation of the gas distribution network, which is 89.3 percent more than last year.

• In the first quarter of the year, ESO’s customers experienced a somewhat worse reliability of electricity supply. Including effects of force majeure, the System Average Interruption Duration Index (SAIDI) was 26.2 minutes per user in the first three months of 2019 and was 16.1 minutes longer compared to the same period of 2018 (when it was 10.1 minutes). The System Average Interruption Frequency Index (SAIFI) per user, including effects of force majeure, was 0.35 times in the first three months of 2019, which was 0.19 times more than in 2018, when it totalled 0.16 times.


*the Company’s EBITDA and net profit results are presented after adjustments made by the management, eliminating the deviation of actual and regulated income and one-off factors. These adjustments are aimed at disclosing performance results of the Company exclusive of atypical, one-off factors or factors directly unrelated to the current operating period. All adjustments made by the management are disclosed in the Company’s interim and annual reports.

Additional information: spokesman Tomas Kavaliauskas, tomas.kavaliauskas@le.lt, tel. +370 617 51616

Attachments


ESO report 2019 Q1.pdf
ESO results 2019 03 31.PDF