OREANDA-NEWS. Latvenergo AS publishes its condensed unaudited financial statements, providing accessible and transparent information on its key performance indicators. Subsequently, everyone will be able to follow Latvenergo performance indicators regularly on a quarterly basis. According to financial results of 2012, the Group turnover has increased by 10%.

Zane Kotane, Latvenergo AS Management Board member and CFO: “The Management Board is focusing its activities to make Latvenergo’s corporate governance an example of best practice. We are paying particular attention to the Group operational transparency that is also one of priorities in the new strategy for the Latvenergo Group. Indubitably, the issue of bonds is a major step towards reliable and transparent exchange of information, which requires not only high requirements for transparency but also dictates regular publishing of financial and corporate governance reports. We are particularly glad that now, just a short time after issuing the bonds, our financial results confirm successful development and electricity supply leadership throughout the Baltics.”

Latvenergo Group unaudited financial results of 2012 show that the Group has successfully operated in the electricity market environment where the electricity market price decreases, while natural gas becomes more expensive. Latvenergo Group has been able to increase its turnover by 10%, exceeding one billion Euros (LVL 751 million) in total. The Group profit has increased by 2%, reaching LVL 44.7 million (in 2011: LVL 43.8 million). Latvenergo Group profit in 2012 is 11% higher than forecasted after Group unaudited financial results for the first nine months.

The greatest positive influence on the financial results gave higher electricity output from Daugava hydropower plants (DHPPs). Latvenergo Group is the largest electricity supplier in the Baltics, with a market share of 33%. The amount of electricity supplied in retail in 2012 was 8 287 GWh, with about 20% supplied outside Latvia. Thermal energy sales have also increased in 2012 – to 2 669 GWh.

The amount of investments in 2012 was LVL 186 million, of which the share of investment in transmission and distribution network assets reached 44% (compared to 29% in 2011). The purpose of this investment was to improve network service quality and technical performance indicators, such as the frequency and duration of outages, voltage quality, etc.

To diversify the sources of lending, in December 2012 Latvenergo AS as the first state capital company in Latvia successfully issued the bonds in the amount of EUR 20 million. The issue of bonds was implemented under Latvenergo AS LVL 50 million (or its equivalent in EUR) programme for the issuance of bonds. Following the successful first issue, in January this year Latvenergo AS realized additional issue of the first series of bonds in the amount of EUR 30 million. As with the previous issue, the investor’s demand was considerably greater than the offer. Since it started issuing bonds, Latvenergo AS has commenced publishing of unaudited financial reports, ensuring not only investors but also the general public with access to transparent data on key financial and operational performance results and indicators in the fields where the Group is represented, i.e. generation and supply, distribution system services and management of transmission assets. Implementing the best practice in investor relations, the Group will publish not only annual financial reports but also quarterly statements, providing up-to-date and unmediated information on the Group key operational performance indicators, such as revenue and profit, as well as on its stability and strategic development.

Audited Latvenergo Group results for 2012 and the 2012 corporate governance statement will be published on 24 April 2013; the Latvenergo Group 2013 interim reports will be available on 31 May, 30 August and 29 November.