OREANDA-NEWS. February 17, 2010. Lietuvos Energija group's operational costs in 2009 were lower by 45 per cent than in 2008.  This is shown by preliminary unaudited results. Last year less depreciation costs it accounted for LTL 93.3 m.

“We have managed to reduce the costs thanks to efficient work of the company staff - transparent procurement practice, refraining from unnecessary costs, precise budget planning and performance", - says Mr. Darius Grondskis, Chief Financial Officer of Lietuvos Energija.

The costs also went down thanks to the lower prices of goods and services, lower payroll expenses.

In 2009 the group’s income accounted for LTL 1.569 m, company's income – LTL 1.547 m of which LTL 225.6 m accounted for transmission and transit activities, LTL 265.2 m – from electricity exports activities. Compared to the respective period in 2008, the revenues of the group went up 2.5 per cent. The income growth largely resulted from earnings growth by selling public service obligations (from LTL 389.6 m in 2008 to LTL 623.1 m in 2009).

In 2009 Lietuvos Energija group earned LTL 24.45 m of pre-tax profit, in 2008 – LTL 62.62 m. The net profit accounted for LTL 21.87 m, in 2008 – LTL 43.74 m.

In 2009 the pre-tax profit of group’s main company – Lietuvos Energija accounted for LTL 32.76 m (in 2008 – LTL 66.06 m), net profit - LTL 28.99 m (in 2008 – LTL 46.98 m).

Last year we lowered electricity transmission tariff, electricity consumption dwindled and therefore the total profit of Lietuvos Energija went down altogether. However, by increasing performance efficiency we closed the year profitably”, says Mr. Darius Grondskis.

The reduction of pre-tax profit was largely affected by the increased depreciation costs and decreased value of non-current tangible and non-tangible assets, having evaluated a drop in construction prices to their fair value.

Earnings of Lietuvos Energija AB group before interest, taxes, depreciation and amortization (EBITDA) accounted for LTL 277.65 m (in 2008 – LTL 231.15 m).

During the last year, acting as the transmission system operator, the company through its high-voltage grid transmitted 9.17 bn kWh of electricity for domestic needs. The volume of transmitted electricity was lower by 9.3 per cent than in 2008. During the reporting year Lietuvos Energija AB sales abroad stood at 3.47 bn kWh of electricity.

In 2009 the company allocated LTL 108.5 m for rehab and construction of power infrastructure, in 2008 – LTL 165.3 m.

“We spent less on investment as there was a drop in prices of works and equipment, our procurement was much more efficient although scopes of work remained the same", - says the Chief Financial Officer of the company.

The company timely met its financial and contractual obligations. By the end of 2009 the company’s liabilities to credit institutions accounted for LTL 13.8 m (in 2008 – LTL 39.7 m LTL).

Lietuvos Energija is the owner of electricity transmission (110 -330 kV) grid and through its daughter companies performs the activities of electricity transmission operator, market operator and other activities in the field of electric power.