Published: 2015-08-31 08:00:15 CEST
Interim information

LESTO results for six months of 2015: the company’s EBITDA up by 1.8% to EUR 71 million, investments increased 21% to EUR 42 million

LESTO AB, identification code 302577612, registered office placed at Aguonu str. 26, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 603 944 593; ISIN code LT0000128449.

Lithuanian electricity distribution company LESTO, which is a part of the largest Lithuania’s energy group “Lietuvos Energija”, UAB, during the first half of 2015 continued to improve performance and set new standards for the quality of services. Focused and consistent implementation of the company's strategic decisions ensured increased investments in network upgrade and modernization, more reliable services to customers and faster new customer’s connection to the power distribution network.

During the first half of 2015 LESTO investments in network upgrade and modernization reached EUR 42.2 million – a fifth (21.1%) more compared to the same period of 2014. Compared to the first half of 2014, investments in low voltage network renovation and reconstruction increased by most – 88% to EUR 17.7 million.

"Investments in our network improve our reliability, adds the flexibility to integrate advanced technologies and adapt to the needs of our customers. They also establish preconditions for further growth in operating efficiency. We are changing outdated equipment with advanced and efficient technologies, which will ensure lower maintenance and repair costs in the future. Likewise we seek to make our network more secure, reliable and smartly managed", - says Aidas Ignatavičius, CEO of LESTO.

According to the head of LESTO, due to improved internal processes new customer’s connection to the electricity distribution network decreased.

„Whilst reviewing our internal processes fundamentally we seek to save our customers’ time and improve the service quality and its attractiveness. Compared to the last year, we have calculated that the time taken for a business to be connected to the power distribution network has decreased by ten days, for private clients – by four days", - says Aidas Ignatavičius.

In addition, electricity and gas clients welcomed the joint client service centres in seven major cities. During the second quarter of this year over 90 thousand customers visited these centres.

During the first half of 2015 LESTO connected 12.8 thousand new customers to the distribution network – 8.3% more compared to the same period of 2014. New customers capacity allowance amounted to 171.3 thousand kilowatts (kW) – 29% higher compared to the same period last year.

The company‘s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) during January-June of 2015 amounted to EUR 71 million – 1.8% more compared to 2014. EBITDA margin increased by 2.75% points to 24.27%.

During the first half of 2015 the net profit of LESTO amounted to EUR 43 million – 2.9 times more compared to the same period of 2014 when it was equal to EUR 14.7 million. The increase of net profit was resulted by significantly lower depreciation and amortization expenses. They are calculated on the basis of a new assessment of the Company’s tangible assets of the beginning of the year.

During the compared period purchase costs of electricity and other related services decreased by 16% to EUR 180.3 million. This was influenced by lower electricity purchase costs in the stock exchange, also lower electricity transmission and system services costs.

The volume of network service during the first half of 2015 increased by 2% and amounted to 4.25 billion kWh.

LESTO revenue during the first half of 2015 amounted to EUR 292.6 million - 9.7% down compared to 2014. Revenue shrank due to the lower electricity prices to consumers.  

During the compared period the system average interruption duration index (SAIDI) with the influence of natural disasters (“force majeure”) per customer amounted to 54.89 minutes – a decrease of 21.68 minutes. The system average interruption frequency index (SAIFI) per customer decreased from 0.63 to 0.53.  

LESTO shares are quoted on the “Nasdaq OMX”. The state-owned energy company “Lietuvos Energija”, UAB owns 94.39% LESTO shares, remaining shares are traded on the stock exchange.  

In 2014 LESTO investor relations practices were among the best Nasdaq Baltic listed companies in 2014.

This notice is deemed non-confidential.