Energijos Skirstymo Operatorius AB
Notification on material event
ESO preliminary financial results for 5 months of 2020
Energijos Skirstymo Operatorius AB (hereinafter – ESO or the Company), identification code 304151376, registered office located at Aguonų g. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by the Company is 894 630 333; ISIN code LT0000130023.
Preliminary ESO financial data for 5 months of 2020
| ||5 months of 2020||5 months of 2019*||Change|
|Revenue||EUR 201.9 million||EUR 181.4 million||11.3%|
|Adjusted EBITDA**||EUR 87 million||EUR 80 million||8.8%|
Revenue of the electricity and natural gas distribution company ESO totaled EUR 201.9 million in 5 months of 2020 and increased by 11.3% compared to the 5 months of 2019, when it was EUR 181.4 million.
Positive impact on the Company’s revenue compared to the previous reporting period had on average 11 per cent higher price of power distribution service, which is comprised of power transmission, distribution and public service obligations (PSO) components and is approved by the regulating authority.
During 5 months of 2020, ESO generated EUR 87 million in adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA**), which were 8.8% higher compared to the same period of 2019, when this indicator totaled EUR 80 million. The indicator increased due to efficient Company’s activity and growing regulatory asset base.
* Following the extensive review of relevant industry practice and in order to be better comparable to the Company’s peers on international level, the Company’s accounting policies were changed. Changes in accounting policies are related to the application of IFRS 15 (International Financial Reporting Standard): (1) netting the revenue from public service obligations (PSO) with the corresponding costs (previously PSO revenue and costs were accounted for separately) and (2) deferring the recognition of the revenue for the connection of new customers over the useful service life of the infrastructure created (previously, in the natural gas segment and in the electricity segment, as of 1 October 2018, the revenue was recognized after the connection service is provided). Changes in accounting policies would fairer reflect the Company’s financial performance and continuing involvement in securing the connection to the customer and for comparability purposes the changes have been implemented retrospectively, i.e. by adjusting financial information for 2019.
** The Company’s preliminary EBITDA are reported after the adjustments made by the management by eliminating deviations in actual and regulated income and 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 atypical, one-off factors or factors that are not directly related to the current reporting period. All adjustments made by the management are disclosed in the Company’s interim and annual reports.
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