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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 13:05

In Q1, Lithuanian state-owned enterprises earned record profits

BC, Vilnius, 17.07.2014.Print version
Based on preliminary unaudited data, normalised earnings of state-owned enterprises amounted to LTL 146.6 million (EUR 42.4 million) in the first quarter of 2014, i.e. by one quarter more year-on-year, reports LETA/ELTA.

The data comes from the interim three-month report of the Governance Coordination Centre which reviews activities of 137 state-owned enterprises.

 

"Normalised earnings of state-owned enterprises in the first quarter were the highest in the last 4 years. Compared to 2012 it grew by 42%. It should be noted that positive result was achieved despite a significant drop in companies' Litgrid and Lithuanian Railways profits and lower total sales portfolio of state-owned enterprises. Similarly as throughout 2013, the biggest change was recorded in energy company Lietuvos Energija whose net profit in the first quarter was three and a half times greater year-on-year," said Marius Barys, acting Head of the Governance Coordination Centre.

                                                                                                                             

Litgrid net profit in the first quarter was by 89% lower compared to the same period of 2013. Meanwhile, net profit of Lithuanian Railways (Lietuvos Gelezinkeliai) plummeted by 85%.

 

According to the head of the Governance Coordination Centre, Litgrid revenue and profit decrease was due to reduced electricity transmission and service tariffs. Whereas Lithunian Railways were affected by petroleum refining company ORLEN Lietuva production and cargo haulage decrease on Kaliningrad route.

 

Total sales revenue of state-owned enterprises in the first quarter of 2014 was by 5% lower year-on-year. The reduction was affected by energy and communications sectors where sales revenue fell by 8.5 and 4.1% respectively.

 

Lietuvos Energija company group had the biggest impact on the whole portfolio. Its sales revenue fell by 4.6% mostly because electricity production quotas in Elektrenai Power Plant were not achieved.






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