Published: 2019-08-30 15:01:00 CEST
Energijos Skirstymo Operatorius AB
Interim information

ESO’s unaudited results of 6 months of 2019: growing number of new customers and improving connection times

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

Results of Half 1 of 2019 of the electricity and gas distribution company Energijos Skirstymo Operatorius (ESO) owned by the largest group of energy companies in the country Lietuvos Energija reflect the steadily growing activity of the Company, while electricity transmission remains the main source of ESO’s income. Excluding one-off factors of regulated activity, the Company's profitability ratios increased, even though investments in increasing the reliability of the distribution network decreased. Profitability was affected by the diminished difference of electricity acquisition price set by the regulator as part of regulated service cost and actual electricity acquisition price. Other factors affecting profitability ratios were changes in new customer revenue recognition principles and higher volumes of guarantee electricity supply.

“ESO’s investments in upgrading electricity and gas networks were somewhat more moderate. In Half 1 of 2019, investments in electricity and gas networks totalled EUR 95.9 million, which is 15.7% less than in the same period of 2018; however, ESO invested EUR 42.6 million in the development of electricity distribution network, which is 21.4% more than in the respective period of 2018. Continued growth of the number of new customers and improving connection times were the main reasons for cost increase”, the Chairman of the Board and CEO of ESO Mindaugas Keizeris said.

Adjusted EBITDA of ESO was EUR 95.3 million in January-June of 2018 was EUR 95.3 million, and compared to the same period of last year, increased by more than EUR 11 million, or 13.1%. The growth of the Company’s asset base, more effective activities of the Company and increased revenue from the connection of new customers help to maintain such dynamics of the indicator.

“The major challenge remains the higher scope of force majeure events, which determine the level of network reliability: in 6 months of 2019, the average duration of fixing a malfunction was 1 hour and 30 minutes compared to 1 hour and 24 minutes in the respective period of 2018. Unfavourable weather conditions had the main impact on the deterioration of the indicator”, – said M. Keizeris.

Key indicators:

• ESO’s revenue in January-June of 2019 totalled EUR 263.2 million and was 14.8 % lower than in January – June of 2018, when it amounted to EUR 309.0 million. Excluding the influence of the public electricity supply activity, revenue of 6 months 2019 increased by 1.8% compared to the same period of 2018, when it comprised 258.5 million EUR.

• Costs of purchase of electricity, natural gas and related services in the six months of 2019 amounted to EUR 136.4 million, which is 36.1 % less than in the respective period of 2018. This was mainly affected by the sale of the public electricity supply activity on 1 October 2018.

• Costs of purchase of natural gas and related services resulted in increased net profit of the Company due to the sale of public electricity supply activities on 1 October 2018. In Half 1 of this year, net profit was EUR 28.6 million, which is 60.6 % more than in the same period of 2018.

• In January-June of 2019, ESO earned EUR 95.3 million in adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA*), which is 13.1 % more than at the same time in 2018, when this indicator was EUR 84.2 million.

• In January-June of 2019, ESO’s investments in electricity and gas distribution networks totalled EUR 95.9 million, which is 15.7 % less than in January-June of 2018, when these investments were EUR 113.7 million.

• In Half 1 of 2019, the average duration of unplanned power outages for each consumer served (SAIDI) due to the impact of major force majeure events was 51.26 minutes, and compared to the same period of 2018, it increased by 19.97 minutes (in 6 months of 2018, SAIDI was 31.29 minutes). The average number of unplanned long interruptions for each consumer served (SAIFI) including the impact of force majeure events was 0.69 times in 6 months of 2019, which is 0.20 times more than in 2018, when the indicator value was 0.49 times.

* The Company's EBITDA and net profit results are presented after adjustments made by management, eliminating the difference between actual and regulated income and the impact of one-off factors. The purpose of these adjustments is to disclose the results of the Company’s operating activities without atypical, one-off factors or factors that are not directly related to the current period. All adjustments made by management are disclosed in the Company's interim and annual reports.

For more information:

Tomas Kavaliauskas,

Representative for Public Relations            

Mob. +370 617 51616,

e-mail: tomas.kavaliauskas@le.lt  

Attachments


2019-6-months-interim.pdf
ESO results 2019 06 30.pdf