OREANDA-NEWS. Distribution network operator LESTO AB group’s unaudited net loss in 2012 decreased by 26% compared to 2011 and amounted to 45.62 million LTL. Group‘s revenue increased by 1.7% compared to the same period of 2011 and amounted to 2.284 billion LTL. While implementing long-term strategy which was approved last year, all the main ratios have improved.

Decrease in technological losses made especially positive impact for financial results – technological losses of 2012 amounted to 7.8% from the electricity received. In comparison, in 2011 8.3% of electricity have been lost.

During twelve months of 2012 the amount of LESTO network service reached 8,113 million kWh. Electricity sales made up 44.5% of this amount.

„Company‘s revenue increased due to the growing amount of new costumers and better economic situation in Lithuania. Better net result of LESTO was caused by consistently implemented changes – Company‘s centralization, decrease of operating costs, purposefully planned investment determines more effective network. LESTO approved long-term strategy last year, which describes further changes inside the company until 2020“ – states Arvydas Tarasevicius, CEO of LESTO AB.

The increase in effectiveness of LESTO is revealed by the positive EBITDA margin (Earnings Before Interest, Taxes, Depreciation and Amortization) change – in 2012 it was 17.12% when in 2011 – 16.13%. EBITDA of the Group increased by 7.9% comparing to 2011 and reached 390.964 million LTL. The reason why the group faces net loss is the peculiarities of regulation. Depreciation and amortization costs in financial statements are higher than those which are put in distribution tariffs and set by regulator.

In 2012, LESTO investments in electricity network expansion and modernization reached 322.8 million LTL. This was 9.3 per cent more compared to the investment in 2011.In 2012, the biggest increase (24.8%) was in investment in the reconstruction and overhaul of 0.4 - 10 kV electricity network. Investment in the reconstruction of 110/35/10 kV transformer substations and 10 kV distribution subsections has increased by 2%.

In 2013, the Company will implement the projects that will be partly financed by the EU Structural Funds. LESTO signed three finance and administration contracts with Ministry of Economy of the Republic of Lithuania and the public enterprise Lithuanian Business Support Agency on December 28, 2012, to implement these projects: up to 4.6 million LTL from the EU Structural Funds is allocated to electricity distribution network modernization and expansion in the gardeners communities, up to 7.8 million LTL - overhead power lines replacement with cable lines and up to 15 million LTL to transformer substations modernization.

LESTO is one of the biggest companies by market capitalization in OMX Baltic securities exchange market. On 3 May, 2012 LESTO share price reached the highest point during the reporting period – LTL 2.22. During the reporting period LESTO share price increased by 9.44%.