Lietuvos Energija UAB: Successful Results of Lietuvos Energija were ensured by cutting costs and diversified activities

Vilnius, Lithuania, 2017-11-17 17:10 CET (GLOBE NEWSWIRE) --
The state-owned group of energy companies Lietuvos Energija maintained moderate
growth of financial results in the first three quarters of the current year.
The decrease of energy and gas transmission and distribution prices to the
clients has caused a 2.5 per cent decline in the revenue of the group. Adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA),
however, grew by 5 per cent (to EUR 166 million) thanks to the further decrease
of operation costs, enhanced efficiency and diversification of the operating
revenues of the group. The Return on Equity (ROE) rate of Lietuvos energija has
remained high and amounted to 9.3 per cent in this period. 

"Lietuvos Energija continues to demonstrate balanced growth. The decision to
diversify and expand business activities already gave results - the adjusted
EBITDA grew regardless of the decreased power and gas transmission and
distribution prices. This was compensated from other activities, i.e.
generation from renewable energy sources and enhanced gas and power trade
portfolio. The refinement of value chain continued to create conditions for
cost reduction and efficiency improvement by diverting resources to the higher
quality services, the reduction of duration of grid connection and the
development of new services. All this allows us to create more value to our
customers and ensure return to the state at the same time", says Mindaugas
Keizeris, CEO and Chairman of the Board of Lietuvos Energija. 

Key indicators of Lietuvos Energija Group for Q I-III of 2017:

  -- Due to decreased energy and gas transmission and distribution prices to the
     clients, the revenue of the group dropped by 2.5 per cent - to EUR 783
     million (EUR 804 million in 2016 Q I-III);
  -- Thanks to efficiency improvement, operation costs decreased by 5 per cent,
     i.e. EUR 5 million - to EUR 93.7 million (EUR 98.7 million in 2016 Q
     I-III);
  -- Adjusted (comparative) EBITDA of the group increased by 5 per cent, i.e.
     EUR 7.8 million- to EUR 166 million (EUR 158 million in 2016 Q I-III),
     mostly due to the better results of power generation EBITDA and decreased
     operation costs;
  -- Return on Equity (ROE) remained high and amounted to 9.3 per cent (10.3 per
     cent in 2016);
  -- Net profit of the group amounted to EUR 77.1 million, i.e. EUR 18.6 million
     less than a year ago, but the adjusted (comparative) net profit increased
     by 35.4 per cent - to EUR 91.3 million (EUR 67.4 million in 2016 Q I-III);
  -- Investments decreased by 14 per cent (to EUR 152.2 million (EUR 177.7
     million in 2016 Q I-III). The decline in investments was due to the
     acquisition of wind farms in 2016 Q I. Except for the factor, investments
     increased by 32 per cent in comparison with 2016 Q I-III. Energy
     distribution network maintenance and development accounted for most of the
     investments (48 per cent and 23 per cent accordingly).

         Director of Corporate Communications Division at Lietuvos energija,
UAB, Laura Šebekiene, [phone], [e-mail]

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