Lietuvos energijos gamyba, AB: Lietuvos Energijos Gamyba, AB, Annual Information 2017

Elektrenai, Lithuania, 2018-03-26 11:26 CEST (GLOBE NEWSWIRE) --
Lietuvos Energijos Gamyba, AB, company code 302648707, registered office at
Elektrines st. 21, Elektrenai (hereinafter referred to as the Company). The
total number of registered ordinary shares issued by company is 635 083 615,
ISIN code - LT0000128571. 

On 26 March 2018 the Ordinary General Meeting of Shareholders of the Company
approved the Annual Report of the Company for the year 2017 and the Annual
Financial Statements of the Company for the year 2017, audited by
PricewaterhouseCoopers, UAB, the Company's auditor. 

Information on the operational results of the Company for the year 2017:

  RESULTS OF LIETUVOS ENERGIJOS GAMYBA OF 2017: MORE ELECTRICITY FROM WATER AND
                      SUSTAINABLE PROFITABILITY INDICATORS

Audited financial indicators of Lietuvos Energijos Gamyba of 2017 reflect
successful efforts of the electricity producer, which is a part of Lietuvos
Energija Group, to adapt to the changing market and to efficiently manage
operating expenses. The Company managed achieving sustainable profitability
indicators: the adjusted EBITDA of 2017 reached EUR 53.7 million, and adjusted
EBITDA margin was 35.9 percent (36.8 percent in 2016) 

"The results of 2017 were significantly affected by the volume of electric
power generated and sold in Kaunas Algirdas Brazauskas' Hydroelectric Power
Plant, which increased by more than a quarter - last year was record both in
terms of the amount of water and the generated electricity. Effectively
exploiting market opportunities and being more actively engaged in intraday
trading on the market, we also produced somewhat more electricity in the
Kruonis Pumped Storage Power Plant compared to 2016. Changed market conditions
resulted in lower electricity production in Elektrenai Complex only. In 2017,
we have ensured high availability and reliable operation of all power plants,
responding to the needs of the market and the transmission system operator.
Reliable contribution to stable operation of the energy system and its security
is one of our most important goals", Egle Ciužaite, Chair of the Board and
Chief Executive Officer of Lietuvos Energijos Gamyba commented the performance
and the results of the power plants of the Company. 

A total of 1.147 TWh of electricity was generated in the power plants owned by
the Company in 2017, which is 16 percent less than in 2016 (1.371 TWh).
Elektrenai Complex generated 0.139 TWh of electricity, or 71.8 percent less
than in 2016 (0.491 TWh in 2016), Kruonis PSP - 0.549 TWh or 6 percent more
than in 2016 (0.517 TWh in 2016), Kaunas A. Brazauskas' HPP - 0.459 TWh or 26
percent more electricity than in 2016 (0.363 TWh in 2016). 

Key indicators of Lietuvos Energijos Gamyba of 2017:

  -- Despite the decreased electricity generation in Elektrenai complex, the
     Company's sales revenue remained fairly stable - in 2017, it totalled EUR
     147.2 million and was only 3 percent lower than in 2016 (EUR 151.8
     million). The Company's revenue totalled EUR 149.8 million in 2017 and was
     13 percent lower than in 2016 (EUR 172.9 million). The main factor having
     determined the decline was the positive result of the sales of a part of
     business accounted for in 2016.
  -- Operating expenses of the Company decreased by 14 percent and were EUR 20.0
     million in 2017 (compared to EUR 23.1 million in 2016). Excluding
     impairment of an amount receivable reflected in expenses for 2016 in
     relation to the shares of Kauno Energetikos Remontas UAB and NT Valdos UAB,
     operating expenses would be slightly higher than in 2016 due to higher
     expenses of dismantling project.
  -- The adjusted (comparative) EBITDA* of the Company totalled EUR 53.7 million
     in 2017 and were 16 percent lower than in 2016 (EUR 63.7 million). This
     indicator mainly changed due to increased costs of works of dismantling of
     Units 5 and 6 of Elektrenai Complex started in 2017 and decreased sales of
     activated secondary power reserve of Kruonis PSP in 2017 compared to 2016,
     also due to lower EBITDA of regulated activity of Elektrenai Complex.
  -- Net profit of the Company was EUR 20.5 million in 2017, i.e. 44 percent
     lower than in 2016 (EUR 40.0 million). The Company's profit decreased as a
     result of the impact of one-time factors in 2017: the positive result of
     the sales of a part of business (EUR 15.4 million) was accounted for in
     2016, and the decline in the value of assets of Units 7 and 8 of Elektrenai
     complex was accounted for in 2017 (negative effect of EUR 31.4 million on
     profit before tax).
  -- The Company's investment in non-current tangible and intangible assets
     totalled EUR 1.9 million in 2017 and EUR 3.3 million in 2016.

*The Company's EBITDA results are reported after the adjustments made by
management by eliminating the impact of one-off factors. These adjustments are
made aiming to disclose the results of the Company's operating activities after
the elimination of the impact of non-typical, one-off factors or factors that
are not directly related to the current reporting period. All adjustments made
by management are disclosed in the Company's interim and annual reports. 

         Valentas Neviera, Head of Communication Division, tel. [phone],
e-mail. [e-mail]

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