OREANDA-NEWS. “Lietuvos energijos gamyba”, AB (legal entity's code 302648707, registered at Elektrin? s g. 21, Elektr?nai, hereinafter – Company) announces its preliminary unaudited financial indicators for the period of January–September 2015:
  • According to preliminary unaudited data, in January–September 2015 the Company’s sales revenue was EUR 168.06 million, which is 7.2% smaller than in January–September 2014 (EUR 181.15 million).
  • Preliminary unaudited profit before interest, tax, depreciation and amortisation (EBITDA) of the Company of January–September 2015 was EUR 39.19 million, which is 19.0% smaller in the period of January–September 2014 (EUR 48.36 million).
  • Preliminary unaudited net profit of the Company earned in January–September 2015 was EUR 26.46 million or 5.4% smaller than the net profit of January–September 2014 (EUR 27.96 million).

Decision of the National Commission for Energy Control and Prices (hereinafter – NCC) not to recognise a part of the proceeds from regulated activities has had the major negative impact on the Company's performance in January–September 2015. Considering NCC's decisions regarding findings of the Company's performance inspection in 2010–2012 and recognising the Company as an important player on the electricity generation market, funds of public service obligations (hereinafter – PSOs) assigned for the Company are decreasing, same as the proceeds from reserve capacity assurance services.

“Following auditors’ recommendations, we do not include these proceeds into the interim financial reports of 2015 but we continue actively defending our position for their recognition, applying for abolition of the above-mentioned NCC's decisions in court. According to preliminary calculations, if removing the impact of the decisions in question on performance results, the Company's EBITDA would amount to about EUR 50 million in January–September 2015. It would be bigger than during the same period last year, despite even decreased volumes in commercial electricity generation”, said Chairman of the Board and Chief Executive Officer of “Lietuvos energijos gamyba” Juozas Bartlingas.

Generation at Kaunas Algirdas Brazauskas’ Hydroelectric Power Plant, which is considered as commercial activity, was declining this year due to record-breaking small water content in the River Nemunas. In January–September 2015, the power plant produced 16.4% less electricity than during the same period last year.

According to the Head of the Company, more efficient subsidised electricity generation in Elektr?nai complex, as well as successful efforts to cut down operating and servicing costs had positive impact on performance results of January–September 2015 and allowed to save consumers’ costs via PSOs.

In Elektr?nai, where electricity was generated from mid-April until mid-October in order to ensure safe supply during the warm season, almost one fourth more subsidised electricity was produced this year. If compared with the same period in 2014, electricity generation efficiency in Elektr?nai  complex in January–September 2015 was about 9% higher.

If comparing the Company's performance results in January–September 2015 with the performance of the same period in 2014, the payback of outsourcing functions of procurement, accounting and employment relations administration is obvious, furthermore, costs of lease, transport, public utilities and other services also experienced decrease.