OREANDA-NEWS. March 16, 2009. Lietuvos Energija AB, in response to the misleading media reports on non-transparent company operations and waste of finances is hereby responsibly states that the company continues its company effectiveness enhancement policy, commenced last year, reported the press-centre of Lietuvos Energija AB.

The company is optimizing the management of the company real estate, is reducing its costs and is unbundling non-core businesses, unrelated to the function of the transmission system operator.

“The costs of unpractical and non-efficient business lay on the shoulders of electricity consumers and therefore their reduction is a priority task for the company”, - says Mr.Darius Masionis, CEO and Chairman of the Management Board of Lietuvos Energija AB. According to him, the company does not intend to tolerate cases of lavishness within the group’s companies where administrative costs account for a significant part the budget and therefore firm measures are being taken to reduce them. 

Given this purpose, following the relocation of tenants from premises at Juozapavieiaus g. owned by Lietuvos Energija AB (currently hosting the central dispatch center), it was resolved to concentrate the entire staff in a single building and stop using the prestigious administrative premises at ?vejo g. hence reducing an average area of workspace for one employee from 16 sq. m to 11 sq. m.  The optimization of such expenses will reduce the company operation costs alone by LTL 0.5 million. The work in two separate buildings, joined by 75-meter-long gallery is ineffective, since a part of time is spent while walking between the buildings, hosting interconnected divisions of the company.

In December 2008 and January 2009 a reconstruction work at the premises at  Juozapavieiaus g. 13 was done by making them cater for the needs of the company divisions and furnishing 114 work places. The total value of the performed work accounted for LTL 1, 775 977,49 (VAT not included).

Currently, the real estate market is being analyzed in order to determine whether it is better to rent out or sell the building at the present moment. Having analyzed the market demand, the Management Board will take respective decisions and if enough substantiation is collected, it will seek an approval from the company shareholders.

While optimizing the functions of the company, a comprehensive analysis of the company activities and their inventory is being performed. Based on company assets costs adjustment in terms of quality and quantity basis, an optimum volume of the real estate will be defined, necessary for the performance of the chosen activities and functions of the company. In the short run Lietuvos Energija AB plans to revise activities of the company-owned resort center in Neringa (Litorina) and conference center in Dubingiai (Dubingiai).

The company does not intend to unbundle Energetiko Mokymo Centras V?A (Energy Professionals Training Center). Lietuvos Energija AB is renting out the premises of EMC at Jeruzales g. 21. Meanwhile, the company is seeking an optimum resolution so that the center meets the up-to-date standards for the preparation of energy professionals and upgrade of their qualification.

Briefly about Lietuvos Energija AB:
Lietuvos Energija AB is a subsidiary of the national investment company LEO LT AB, which performs functions of electricity transmission grid (110-330 kV voltage) owner, system operator and market operator and seeks to ensure the stability of electricity transmission and power system in Lithuania. LEO LT AB controls 96.4 per cent of Lietuvos Energija AB shares.