OREANDA-NEWS. In the first 6 months 2013, “Lietuvos Energijos Gamyba” (former Lietuvos Energija) Group of Companies (hereinafter the Group) earned net profit of LTL 57.9 million. This is more than a double result compared to the last year: in the first 6 months 2012, the net profit was LTL 26.2 million.

“The first 6 months 2013 was particularly successful for the commercial activities of the Group. The income generated by the said activities compensated both markedly lower power generation (due to drop in power generation quota) at the stand-by power plant in Elektrenai, and by the change in value of the emission allowances (EA). Having eliminated the effect of the change in value of EA, net profitability in the comparable period demonstrated a growth higher by 11 points compared to 2012 (amounting to 15.3%)”, so the performance is commented by Dalius Misiunas, former general manager of “Lietuvos Energijos Gamyba”, currently chairman of the Supervisory Board.

The double increase in profit allowed for a stronger financial position of the Group. In the period discussed, the financial liabilities of the Group to the banks were reduced; furthermore, dividends of LTL 25 million were paid out to the shareholders of “Lietuvos Energijos Gamyba” for the year 2012.

Profitability indicators

Compared to the first 6 months 2012, the EBITDA of the Group increased twice and reached LTL 145 million. EBITDA margin was 27.4% and exceeded that of the first 6 months 2012 by 16.9 points.

Net profitability of the Group demonstrated an increase of 7 points, from 3.9% in the first semester 2012 to 10.9% in 2013.

In the above period, the net profitability (after elimination of the effect of the EA value change) increased from 4.3% to 15.3%. Net profit of the Group (the effect of the EA value change in the period excluded) demonstrated an almost quadruple growth, from LTL 28.5 million in the first 6 months 2012 to LTL 81.3 million in the first 6 months 2013.

According to Mr Misiunas, high profitability indicators demonstrate that the Group has chosen an effective strategy of trade in the free market.

Income, regulated and commercial activities

Intense competition in the free market and a 53% drop in the generation volumes in the stand-by power plant have led to a 20% drop in the 6-months income of the Group. In the 6 months 2012, the income generated was LTL 664.9 million, and in 2013, LTL 531.3 million.

Income generated by the regulated activities* in the above period dropped by 14% compared to the same period in 2012. The share of the said income in the entire income structure of 6 months of the Group accounts for 38% (in the I semester 2012, 46%). The regulated activities of the Group generated LTL 1 million gross profit in the 6 months 2013. In the same period 2012, regulated activities was not profitable, as it generated loss of LTL 5 million.

In the period above, there was a marked increase in profitability of the commercial activities** - it reached 18.4% before taxes (in the 6 months 2012, 8.2%). Hence, although the income generated by the said activities of the Group dropped by almost 20%, the profit generated increased. Income of the commercial activities accounted for 62% of total income and allowed for a gross profit of LTL 60.9 million. In the 6 months 2012, gross profit of the commercial activities reached LTL 35.2 million.

Power generation indicators

According to Juozas Bartlingas, Director of the Power Generation Department at “Lietuvos Energijos Gamyba”, acting General Manager of the Company, successful commercial performance was greatly influenced by higher power generation at the hydroelectric plants managed by the Company. In first 6 months 2013, total quantity of electricity generated at Kruonis pumped storage hydroelectric plant and Kaunas hydroelectric power plant was almost 20% higher, compared to the same previous period, 0.52 and 0.42 TWh.

In the above period, Kaunas hydroelectric power plant generated 0.25 TWh electricity, i.e. over 35% of the total electricity generated in the country, and supplied to the grids from renewable sources. The certified “Green Lithuanian energy” generated by EnergijosTtiekimas, part of the Group, had 30 corporate and 5 household users in the late I half-year.

Total quantity of electricity generated by the three power plants managed by “Lietuvos Energijos Gamyba” during the 6 months 2013 was 0.74 TWh, while the quantity in the same period 2012 was 0.88 TWh, i.e. 19% more.

In terms of power generation, March was exceptional, where due to sharp frost, the demand for electricity increased markedly and so did the electricity prices. On that occasion, the Company launched a block of the stand-by power plant. This was the third occasion already since February 2012, where blocks of a power plant of “Lietuvos Energijos Gamyba” are launched to secure and in response to a sharp increase in prices.