Litgrid Group financial results for 2014 announced
Vilnius, Lithuania, 2015-02-27 15:22 CET --
Litgrid Group reported an income of EUR 121.2 million for 2014, 29% lower compared to 2013. Income from electricity transmission accounted for 50% of the Group's total income - EUR 60.6 million.
Income from transmission decreased by 8%, system services income by 54% and balancing energy sales income was 59% lower compared to 2013. The decrease in the income was determined by lower electricity transmission tariff approved by the National Commission for Energy Control and Prices (hereinafter - the Commission) for 2014, which has been reduced by 9%, as well as the system service tariff rate, which in 2014 was less than half compared to the previous year.
„Taking into account the reduced transmission and system service rates, even worse financial results for 2014 were anticipated. However, cost saving and more efficient business processes allowed to improve it“, - says Rimantas Busila, Member of the Board and Director of Financial Department of Litgrid.
Group’s costs dropped 23%, mainly due to lower volumes of electricity and related services purchase. These particular costs were EUR 50.7 million and made up the largest share of the total costs.
Litgrid Group’s losses before tax, prior to re-evaluation of tangible fixed assets, totaled EUR 4.4 million in 2014. The Group’s EBITDA was EUR 35.9 million.
Litgrid investments during 2014 amounted to EUR 100.8 million, with its largest share - 78% - dedicated to the implementation of strategic projects and 22% directed to the reconstruction and development of the electricity transmission network.
Litgrid transmitted 9.3 billion kilowatt hours of electricity via high voltage transmission networks for domestic consumption in 2014, the volume being nearly the same as in 2013.
In response to the auditors’ recommendations and in accordance with Order No 241-235 of 17 December 2013 of the Head of the Supervision Service of the Bank of Lithuania whereby Litgrid was authorised to estimate the true value of tangible fixed assets no later than drafting the financial reports for 2014, Litgrid has performed the evaluation of the tangible fixed assets using the discounted cash flow method. On 31 December 2014, the true value of the tangible fixed assets was EUR 366.6 million.
After the evaluation, the value of the tangible fixed assets dropped by EUR 185.7 million. Litgrid Group’s loss before tax for 2014, taking into account the result of the evaluation of the tangible fixed assets, amounts to EUR 127.6 million.
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