Energy, Gas, Gas Market , Latvia

The shareholders meeting was supposed to approve establishing a Latvijas Gaze subsidiary in order to separate gas distribution system operator from the company, but one of Latvijas Gaze shareholders, Marguerite Gas II, which holds more than 25 percent of Latvijas Gaze shares, voted against the initiative.

Marguerite Gas II proposed instead that a natural gas trading company be founded as a subsidiary that would operate independently from Latvijas Gaze, therefore Latvijas Gaze would remain the operator of gas distribution system, but that proposal was not supported either.

According to Latvijas Gaze, now discussions will continue between the company's board, council and shareholders about the best way to separate natural gas trading and distribution functions.

An audit commission was also elected during the shareholders' meeting today, made up of auditors Benita Kudore and Anita Kanepe, as well as Latvijas Gaze council member Juris Savickis.

As reported, joint-stock company Conexus Baltic Grid was established at the end of 2016 to take over natural gas storage and transmission assets from Latvijas Gaze. According to the Energy Law, natural gas distribution system operator also has to be legally independent from Latvijas Gaze.

In 2016, Latvijas Gaze generated EUR 392.266 miдn in sales, down 11.8% from a year before, while the company's profit rose 22.9% to EUR 37.506 mln, according to the company’s unaudited financial report submitted to the Nasdaq Riga stock exchange.