Litgrid results for the first six months of 2020
LITGRID AB, company code 302564383, registered office address Viršuliškių skg. 99B, Vilnius, Lithuania.
Transmission system operator Litgrid successfully concludes the first six months of the year reporting growing revenues and profits, the implementation of planned works related to the synchronisation of Lithuania’s energy system with the grid of the continental Europe.
“Financial results for the last six months indicate that, even in these trying times, the company is operating in a stable manner and is consistently pursuing its ambitious goals,” announced Daivis Virbickas, CEO of Litgrid. “While the COVID-19 pandemic brought changes in working conditions around the world due to quarantine, the activities of Litgrid were not disrupted. However, our foreign partners have faced production challenges, with the factories that make the equipment necessary for projects either facing restrictions or being forced to shut down. Now, our challenge is to maintain our projected rate of implementation in our synchronisation projects. So far, all works have been carried out according to schedule – and some have even been completed sooner than planned.
“The first half of 2020 marks the success of the first stage of synchronisation with continental Europe under extraordinary circumstances, as well as the successful commencement of preparations for the next stage — namely, the laying of the Harmony Link marine connection. Over recent months, we have also laid the foundations for the lasting partnerships necessary for energy independence: the Baltic States and Poland have submitted a joint application for funding from the Connecting Europe Facility (CEF), for investments relating to the second stage of synchronisation.”
The first six months of this year have been financially successful for the company, which earned EUR 101.5 million in revenue — 9.7% or EUR 9 million more than during the same period last year.
Compared with the first six months of 2019, revenue earned from transmission rose by 18% to EUR 40.9 million, accounting for 40.4% of the company‘s total revenue. Growth during this period was determined by the actual price of transmission, which was 23% lower than average, as well as a 4.2% reduction in the amount of electric power transmitted, which totalled 4.932 million kWh. This was the result of warmer temperatures during the winter season compared with the multi-annual average, as well as the effects of the COVID-19 pandemic.
Revenue earned from system services grew by 21% to EUR 42.9 million (the National Energy Regulatory Council had instituted a 28% higher price for system services, valid from 1 January 2020; meanwhile, the scope of system services decreased by 4.6% during the reporting period). Due to the imbalance and subsequent balancing of the lower average transmission price, revenue earned from electric power transmission went down by 26% to EUR 10.1 million.
During this difficult period, the company has managed to maintain stable costs at a lower level than last year — the costs incurred by the company during the first half of 2020 totalled EUR 86.2 million, 3% less than in 2019. These were determined by 8% lower costs relating to the procurement of electric power and related services, which amounted to a total of EUR 62.3 million. Power costs relating to imbalance and balancing went down by 26% to EUR 9.9 million, while costs relating to system services increased by 12% to EUR 41.2 million. Due to the lower purchase price, costs relating to the procurement of electric power for the purposes of compensating for technological losses in the transmission network fell by 45% to EUR 6.2 million.
Other costs increased by 27%, from EUR 11 million to EUR 14 million, mainly due to the implementation of scheduled network maintenance and repair works necessary to ensure the reliability of power transmission (+44% compared with last year).
During the first half of 2020, EBITDA totalled EUR 26.2 million, a rise of 97% or EUR 12.9 million compared with the first six months of last year. The EBITDA margin increased to 25.8% (compared with 14.4% in 2019). In the first half of 2020, the company earned EUR 13.6 million in net profits (compared with EUR 2.8 million in 2019). The growth in Litgrid’s EBITDA was due to an increase of EUR 6.2 million in revenue earned from electric transmission, EUR 5 million lower costs relating to the compensation of technological losses, and a EUR 1.7 million positive balance in costs and revenues relating to system services.
Litgrid’s total investments during the first half of 2020 amounted to EUR 17.5 million; 53% of these were dedicated to the implementation of strategic electric power projects of national significance, and another 47% to the reconstruction and development of the transmission network.
The individual authorized by LITGRID AB to provide additional information:
Phone: +370 613 19977