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Unaudited results of Latvenergo Group for the first quarter of 2017


Today, on 31 May, the unaudited condensed consolidated interim financial statements of Latvenergo Group for the first three months of 2017 are published.

In Q1 2017, Latvenergo Group’s revenue remained at the same level as a year ago; it amounts to 265.8 million euros. EBITDA [1] of the Group has increased by 14%, reaching 113.8 million euros. Compared to the respective period of the previous year, the amount of electricity generated by the Group has increased by 50%, reaching 1,855 GWh.

 Compared to the respective period in the previous year, the amount of electricity generated by Latvenergo Group in Q1 2017 has increased significantly – by 50%, reaching 1,855 GWh. This increase was mainly facilitated by the increase in power generation at Daugava HPPs by 91%, reaching 1,148 GWh in Q1 2017, because the spring flood period in the Daugava River in this year was constant and relatively lasting after several years. Whereas power generation at Riga CHPPs has increased by 12% in Q1 2017, reaching 692 GWh.Latvenergo Group has successfully used advantages offered by the diversified generation portfolio, adapting operation of the Riga CHPPs and the Daugava HPPs to the market situation and generating electricity, which is competitive not only on the scale of Baltic states, but also on the scale of Nordic countries.

In the reporting period, the Group supplied 1,882 GWh of electricity to Baltic retail customers – 1,263 GWh in Latvia, 360 GWh in Lithuania and 260 GWh in Estonia. The total number of customers outside Latvia exceeds 34.6 thousand. The overall amount of retail electricity trade outside Latvia accounts for 1/3 of the total.

Compared to the respective period in the previous year, Latvenergo Group’s revenue did not change significantly in Q1 2017, and amounts to 265.8 million euros. During the reporting period, Latvenergo Group’s EBITDA increased by 14% reaching EUR 113.8 million, while the Group’s profit in Q1 2017 was EUR 55.1 million. The Group’s results were positively impacted by the 91% greater electricity output at the Daugava HPPs.

In Q1 2017, the total amount of investment has not changed significantly compared to the respective period last year; it amounts to EUR 32.1 million. Approximately 80% of overall investments were made in network assets. Key investment projects of Latvenergo Group are: reconstruction of hydropower units of Daugava HPPs, which will ensure their operation for next 40 years; the Kurzeme Ring project, which significantlyincreases power supply safety in the Kurzeme region and Latvia as a whole, allowing further integration of the Baltics into the Nordic electricity market; as well as the Third Estonia-Latvia power transmission network interconnection - the project that bears major significance for the future electricity transmission infrastructure of the whole Baltic region.

On 26 January 2017, Latvenergo AS was the first enterprise in the Baltics to receive the award “Best Investor Relations in Baltics among Bond Issuers”, acknowledging reliable, transparent and best practice investor relations in 2016.

On 16 February 2017, Moody’s reconfirmed the credit rating for Latvenergo AS: Baa2 with a stable outlook.

On 3 March 2017, changes were made in the composition of the Audit Committee of Latvenergo AS, increasing the number of Members. According to the decision of the Shareholders’ Meeting of Latvenergo AS, three former members of the Committee will continue their work in the Committee, and two representatives of the Supervisory Board of Latvenergo AS – Andris Ozoliņš and Andris Liepiņš – will join them. The term of office of the Audit Committee is three years.

The next interim financial statements of Latvenergo Group for 2017 will be published on 31 August and 30 November. Unaudited condensed consolidated interim financial statements of Latvenergo Group for Q1 2017 are available in the section Investors/ Reports.

[1]EBITDA – earnings before interest, corporate income tax, share of profit or loss of associates, depreciation and amortization, and impairment of intangible and fixed assets.

Ivita Bidere

Latvenergo AS
Press Secretary
Tel.: 67728809; 29279158

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