Energy, Investments, Lithuania

Due to the country's economic growth LESTO has connected 11,801 objects of new customers, 37% more than in the same period of 2013, the company said.

In January-June LESTO group's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) amounted to LTL 250 million (EUR 72.4 million) – that is an increase of 4.2% compared to the same period of 2013. EBITDA margin increased by 2.22 per cent points and amounted to 21.87%.

The consolidated net profit of LESTO group for the first half of 2014 amounted to LTL 53.4 million (EUR 15.5 million) – 2.3 times more than in January-June of 2013 when it was equal to LTL 22.8 million (EUR 6.6 million). The significant improvement was influenced by the decrease in purchase costs of electricity and other related services. These costs amounted to LTL 740.1 million (EUR 214.4 million), or 12.3% less compared to the same period of 2013.

LESTO group's revenue of January-June of 2014 amounted to LTL 1.143 billion (EUR 331 million) and, compared with the same period of 2013, declined by 6.3%. Revenues shrank due to the decrease of electricity prices to consumers. The volume of network service during the reported period increased by 0.5% and amounted to 4.2 billion kWh.

LESTO group consists of subsidiaries Elektros Tinklo Paslaugos, NT Valdos and associated companies Technologiju ir Inovaciju Centras and Verslo Aptarnavimo Centras.

AB Lietuvos Energijos Gamyba Group EBITDA margin for the first half of 2014 was 33.2%, which, compared to the same period last year, amounts to an increase of 5.9 percentage points (from 27.3%).

Nevertheless, the lower electricity generation and trading volumes still resulted in a decrease of EBITDA in absolute terms, from LTL 135.7 million (EUR 39.3 million) to LTL 121.9 million (EUR 35.3 million).

The group's net profitability increased by 9.5%age points: for the first half of 2013, the net profitability ratio was 11%, compared to 20.5% for the same period this year.

During the first half of 2014, the group earned LTL 75.5 million (EUR 21.9 million) in net profit, or 37% more than during the same period in 2013, when net profit amounted to LTL 55.2 million (EUR 15.9 million).

Profit ratios were also increased by the favourable situation in the emission permit market (prices for emission permits have increased from 16.95 LTL/pc. (4.90 EUR/pc.) to 20.06 LTL/pc. (5.81 EUR/pc.) since the beginning of the year), so the value of the emission permits held by the company increased.

According to Juozas Bartlingas, Chairman of the Board and CEO of Lietuvos Energijos Gamyba, these operating results are an excellent starting point for implementing Lietuvos Energijos Gamyba's 2014-2020 business strategy, which was approved at the end of the first half of 2014. The strategy includes plans to increase the company's value, ensure the provision of quality services to customers, boost operational efficiency, and form a value-based organizational culture.