LNR: Preliminary pre-audited results of Lietuvos Energijos Gamyba, AB for twelve months of 2015
- According to preliminary pre-audited data, in 2015, sales revenue of the Company totals EUR 203.10 million and is 12.1 percent lower than sales revenue of 2014 (EUR 231.08 million).
- Preliminary pre-audited earnings before interest, taxes, depreciation and amortization (EBITDA) of the Company amount to EUR 49.71 million and are 22.4 percent lower compared to EBITDA of 2014 (EUR 64.02 million).
- Preliminary pre-audited net loss of the Company totals EUR 0.23 million in 2015, meanwhile its net profit was EUR 33.41 million in 2014.
The greatest adverse effect on the Company’s net result of 2015 comes as a result of a one-time loss of EUR 30 million from the decision on the decommissioning of Units 5 and 6 of the Lithuanian Power Plant due to impairment of long-term tangible assets and restoration of assets-related grants. “We have provided for the decommissioning of these units due to their poor technical condition, low future exploitation potential and high maintenance costs in the long-term strategy of the Company. The implementation of the strategy is aimed at the reduction of burden on consumers and increase of the value of the Company by efficient operations”, - said Juozas Bartlingas, the Chairman of the Board and Chief Executive Officer of Lietuvos Energijos Gamyba.
In 2015, EBITDA of the Company was lower than in 2014 due to decisions adopted by the National Commission for Energy Control and Prices (NCC) that did not recognize a part of revenue from regulated activities. Given the decisions of the NCC regarding the results of the inspection of the Company’s activities of 2010–2012 and the recognition of the Company as having a significant impact in the electricity production market, funds for public service obligation (PSO) allocated for the Company and revenues from the services of the ensurance of power reserves have decreased.
The Company has not included these revenues into its financial reports of 2015 upon the recommendation of auditors, however, it continues actively defending its position on the recognition thereof seeking to revoke the said decisions of the NCC in court. According to preliminary calculations, having deducted the impact of these decisions, the Company’s EBITDA of 2015 would total about EUR 65.6 million and would be higher than during the same period of last year, regardless the decreased commercial electricity production volumes.
In 2015, production in Kaunas Algirdas Brazauskas' Hydroelectric Power Plant dropped due to very low water levels. This year, compared to 2014, 13.4 percent less electricity was generated in this power plant. Compared to 2014, in 2015, 24.4 percent more electricity was produced in the Elektr?nai complex, where electricity was generated in order to ensure the security of supply during warm season.
Consolidated and interim financial reports of the Company for twelve months of 2015 will be published according to the schedule laid down in the investor’s calendar.
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