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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 16:39

Latvenergo posts 24.2% rise in 2019 profit

BC. Riga, 08.04.2020.Print version
Latvia's Latvenergo energy concern last year posted EUR 841.6 mln in turnover, growing 0.3% from 2018, while the concern's profit increased by 24.2% to EUR 94.4 mln, according to the company's audited financial report published today, writes LETA.

Latvenergo closed 2018 with EUR 76 mln in profit.


The company's EBITDA decreased by 14 % to EUR 243.5 mln.


In 2019, Latvenergo Group generated 4,880 gigawatt-hours (GWh) of electricity, down 3.9 % from a year ago, adn sold 6,505 GWh of electricity and 303 GWh of natural gas.


For the second year in a row, combined heat and power plants (CHPPs) of Latvenergo AS generated historically the largest amount of electricity – 2,780 GWh, which is 5 % more than in 2018. In turn, the Daugava hydro power plants (HPPs) generated 2,047 GWh, which was 14 % less than in the previous year. This was due to lower water inflow in the Daugava River.


In 2019, the total amount of investments of Latvenergo Group amounted to EUR 229.4 mln, which is EUR 8.8 mln more compared to 2018. 79% of the total investments were invested in the network assets. In 2019, EUR 16.6 mln were invested in the reconstruction of hydropower units of the Daugava HPPs. The reconstruction program has been scheduled until 2023, and its total reconstruction costs will exceed EUR 200 mln. 


On October 8, 2019, the Cabinet of Ministers decided to complete the ownership unbundling of the electricity transmission system operator by July 1, 2020, transferring all assets of the electricity transmission system on the balance sheet of Latvijas Elektriskie Tikli, a subsidiary of Latvenergo, to the transmission system operator Augstsprieguma Tikls. The change of ownership of assets is planned through the reduction of the share capital of Latvenergo by withdrawing the capital shares of Latvijas Elektriskie Tikli from the base of assets of Latvenergo.


On October 15, 2019, the international credit rating agency Moody's affirmed the credit rating of Latvenergo at investment grade Baa2 with a stable outlook, also taking into account the planned unbundling of transmission system asset ownership.


Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets. Latvenergo is a state-owned company and the shareholder is the Economics Ministry.

 






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