LITGRID Group Results for the 1st Quarter of 2019
Financial results of the first quarter lay solid foundation for strategic projects
The financial results of the first quarter of this year - Litgrid Group revenue compared to the same period last year grew by 5.5 percent to EUR 50.6 million, and the net profit amounted to EUR 3.2 million.
“We are capable and ready to meet the needs of society, business and state. Sustainable objectives of our activities and CEF funding we received at the beginning of this year gave strong boost to achieve strategic goals”, - general director Daivis Virbickas says.
Revenue from system services grew by 9 % (to EUR 18.1 million EUR). Though the volume of system services decreased by 5 %, the tariff had been increased 16 % by the National Commission on Energy Control and Prices from 1 January 2019, which is the main driver of system service revenue growth.
Revenue from electricity transmission increased by 2.3 % up to EUR 18.5 million compared to first quarter of 2018 and accounted for 36 % of the Group’s total revenue. Income growth was conditioned by 4.8 % higher average actual electricity transmission price.
The regulated electricity transmission price at the beginning of this year grew due to objective reasons - servitude compensation, auto-transformer transfer costs and increased purchase costs for own use etc.
The EBITDA in the first quarter of 2019 amounted to EUR 9.5 million. Compared to 2018, the EBITDA decreased by EUR 2.4 million or 20 %. The EBITDA margin decreased to 18.8 % (in 2018 - 24.9 %).
The net profit of the Group in the first quarter of 2019 was EUR 3.2 million (in 2018 - EUR 4.2 million).
The main reason for the decrease of the Group's EBITDA is EUR 2.5 million worse balance of system services revenue and costs – in the first quarter of 2009 the balance was EUR 0.1 million, while in 2018 - EUR 2.6 million
The investments of transmission system operator Litgrid in the first quarter of 2019 amounted to EUR 4.8 million, of which 56 % were earmarked for the implementation of electricity projects of strategic and high national importance, and 44 % for the reconstruction and development of the electricity transmission grid.
In January this year, the European Commission allocated funding for the first phase of synchronization of the Baltic energy system with Continental European Network - the renewal and enhancement of the Lithuanian electricity system will require 167 million, three quarters of which will be supports by EU.
The Group’s operating expenses totaled EUR 46.5 million in the first quarter of 2019, which are 9 % higher compared to 2018. Major share of the Group’s operating expenses – 71 % – consists of costs of electricity and related services purchase.
The individual authorized by LITGRID AB to provide additional information:
Head of Communication Division
phone: +370 613 19977