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Thursday, 25.04.2024, 19:36
Latvijas Gaze Group raises turnover 2.9%
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At the same time, Latvijas Gaze
company increased turnover by 4.6% year-on-year to 229.054 mln euros in the
nine months of 2018. The company’s profit was 14.72 mln euros, or 4.3 times
higher than a year ago.
“Higher commodity prices quoted at the major open natural gas hubs,
positive effects from the Company’s newly established hedging activities, as well
as significantly higher than expected gas sales to the power generation segment
were the key drivers behind the better financial results in comparison with the
same period last year,” the gas company’s management said in the financial
report.
The Latvijas Gaze management
noted at the same time that in the fourth quarter of 2018, higher expenses and
lower sales margins due to increased competition will mitigate parts of the
positive financial results accumulated in the group’s sales and trading segment
during nine months period of 2018.
According to the management report, Latvijas
Gaze sold 960 mln cubic meters of natural gas to more than 400,000 clients
in the nine months of 2018. Compared to the first nine months of 2017, gas
sales dropped by 8%, primarily due to the arrival of new trading companies
after the opening of the gas market in 2017 and changed purchasing patterns of
large customers.
The distribution segment is the largest segment in the Latvijas Gaze Group by asset value, the
management said, informing that at the end of September 2018 the value of the
segment’s assets was 261 mln euros, while turnover had dropped 0.2%
year-on-year to 34.8 mln euros.
The trading segment at the end of the reporting period had an asset value
of 180.4 mln euros, which mainly consisted of natural gas in stock and advances
for inventories. The segment’s net turnover during the first nine months of the
year amounted to 226.5 mln euros (increase by 3.4% compared to the same period
in 2017).
In the first nine months of 2018 Latvijas
Gaze turned over 253.885 mln euros and generated 17.551 mln euros in
profit.
Latvijas Gaze is quoted
on the Nasdaq Riga Secondary List.
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