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Saturday, 27.04.2024, 04:48
Audited profit of Latvijas Gaze natural gas utility reaches EUR 23.193 mln in 2018
At the same time, the concern’s net sales reached EUR
344.902 mln, up 8.9% y-o-y, while its profit was EUR 25.185 mln, down 3.3% from
2017.
The company’s management reported that the total natural gas
quantity supplied by Latvijas Gaze in
Latvia in 2018 accounted for over 90% of total Latvian consumption. At the same
time, the Latvijas Gaze continued
with its efforts to expand its gas sales activities into the neighboring
natural gas markets in Lithuania and Estonia. While the entry into the
Lithuanian market remained challenging, the Latvijas
Gaze in late 2018 signed several gas sales agreements with a number of
customers in Estonia.
In 2018, Latvijas Gaze
group supplied natural gas to more than 400,000 customers in Latvia and further
expanded its presence in the natural gas wholesale segment and natural gas
trading abroad. The total natural gas sales in 2018 amounted to 1.231 billion
m3 (12,969 GWh), which is a 6.5% decrease in comparison to 2017.
“The decrease is attributable to the entry of new trading
companies after market opening in 2017 and changed purchasing patterns of large
customers. On the other hand, higher energy and commodity prices, additional
income from the storage auction organized by the Conexus Baltic Grid in August 2018, higher than expected sales to
the power generation segment as well as positive results from locking in
margins via financial hedging activities contributed to delivering a strong
financial result,” the company said.
As in previous years, the Latvijas Gaze in 2018 continued to make a number of investments to
ensure most efficient operations when delivering high-quality products and
services to customers. In total, the company in 2018 spent approximately EUR
2.45 mln for investment projects. Out of this amount, the Latvijas Gaze invested more than EUR 2 mln into the first
implementation phase of a new billing system and customer portal.
Additionally, the company spent approximately EUR 150,000 on
other IT-related projects and equipment. The modernization of the existing IT
infrastructure and the digitalization of the company’s sales processes will
play a key role in serving customers with the best products and services at the
most competitive price also in the future. Therefore, the company plans to
continue its investments related to the new billing system and customer portal
in 2019 with completion of the implementation for all customer segments
expected in late 2020.
Latvijas Gaze
turned over EUR 281.571 mln in audited turnover and made a EUR 24.217 mln in
profit in 2017. At the beginning of 2017, the company was split up, creating
gas storage and transmission operator Conexus
Baltic Grid, and Gaso, a
subsidiary in charge of gas distribution, was founded at the end of 2017.
Latvijas Gaze
group's major shareholders were Gazprom
(34% of shares), Marguerite Gas
(28.97%), Uniper Ruhrgas International
(18.26%), and Itera Latvija (16%). Latvijas Gaze shares are listed on the Nasdaq
Riga stock exchange.