EPSO-G Group’s revenue for 2022 amounted to EUR 590 million, investments increased to EUR 140 million


15-02-2023
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Revenue of the energy transmission and exchange company group EPSO-G in 2022 amounted to EUR 590 million, an increase of 63% compared to EUR 363 million in 2021. The Group’s results were significantly impacted by the change in international gas flows, as well as by the sharp increase in energy prices following the outbreak of the war in Ukraine, which doubled the Group’s costs to EUR 637 million.

The Group’s performance was positively impacted by the successful operation of the gas and biofuel exchanges and the smooth completion and continuation of strategic infrastructure development projects. Last year, the EPSO-G Group invested EUR 140 million in projects to strengthen Lithuania’s energy independence.

According to Mindaugas Keizeris, CEO of EPSO-G, the Group’s companies have maintained a high pace of implementation of projects strengthening Lithuania’s energy independence. In 2022, the GIPL gas interconnection with Poland became operational, and the capacity of the ELLI interconnection with Latvia was significantly increased. Synchronisation projects with the continental European electricity grids are progressing well, and the four battery parks project is underway. Finally, the Physical Barrier on the border with Belarus was completed on schedule.

“The consolidated Group’s revenues have grown in line with the increase in regional gas flows and the volume of regulated activities. However, the significant increase in electricity and gas prices led to an even faster increase in operating costs, resulting in negative profitability. Taking into account the specific aspects of the previous year and the fact that most of the activities are regulated, the adjusted financial indicators are positive. The Group’s companies continue to implement and invest in strategic projects”, said Mindaugas Keizeris when commenting on the Group’s performance.

After Lithuania stopped importing natural gas from Russia, the Klaipėda LNG terminal became the main source of gas in the Baltic States, which led to a significant redistribution of gas flows. More gas is being transported towards Latvia and, since May last year, towards Poland. Transporting gas to adjacent transmission systems has increased revenues and changed their structure. This led to a more than doubling of revenues from natural gas transmission services to EUR 98.3 million. The Group’s revenue growth was also driven by a 55% increase in revenues from electricity transmission and related activities, which amounted to EUR 420.3 million in 2022. This was driven by a 2.4-fold increase in imbalance and balancing electricity revenues due to higher electricity market prices.

The Group’s other revenues amounted to EUR 71.4 million, mostly due to the Physical Barrier project on the border with Belarus. Most of this project was carried out on a “de-minimis” basis, reimbursing the cost of works under contracts with construction contractors.

Due to the significant increase in energy prices, the Group’s operating costs doubled last year to EUR 637 million. As a result of these higher costs, the EPSO-G Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2022 were negative at EUR -11.3 million. In 2021, Group’s EBITDA amounted to EUR 79.6 million. The Group’s consolidated net loss in 2022 was EUR 42 million, compared to a net profit of EUR 39.8 million in 2021.

The Group’s adjusted EBITDA, calculated after taking into account the adjustment of the results of transmission operators in subsequent years for prior periods, the difference between actual technological losses and the price set difference and other factors, remained stable at EUR 62.6 million. The Group’s adjusted EBITDA for 2021 was EUR 63.8 million. The Group’s corresponding adjusted net profit was EUR 21.3 million last year and EUR 26.7 million in 2021.

“Litgrid’s” investments in strategic and nationally important electricity projects amounted to EUR 55.9 million last year. “Amber Grid’s” investments amounted to almost €43 million, the bulk of which was a €27.5 million payment for the gas interconnection between Lithuania and Poland, which was completed last year. “Energy cells” invested €35.9 million in an energy storage system.

In 2022, “Amber Grid” transported 40.4 terawatt hours (TWh) of natural gas to customers in Lithuania, the Baltics, Finland and Poland, excluding transit to the Kaliningrad region. Last year’s war in Ukraine led to a sharp increase in gas flows towards Latvia. In 2022, 18.4 TWh of gas was transferred to the Baltic States and Finland, ten times more than in 2021. The GIPL pipeline, which has been in operation since May last year, transferred 6.4 TWh of gas to Poland in May–December and 2.3 TWh to Lithuania.

The main performance indicators for electricity transmission remained relatively stable this year. 10.2 TWh of electricity was transmitted through high-voltage transmission networks to meet the needs of the country’s population and businesses last year. Due to savings by residents and business organisations and the growth of generation consumers connected to distribution networks, the transmission of energy was 6.4% lower compared to the same period in 2021.

The “GET Baltic” gas exchange, which operates in Lithuania, Latvia, Estonia and Finland, traded 7 TWh last year. On the “Baltpool” energy exchange, Lithuanian heat supply companies, independent heat producers and industrial companies purchased 6.8 TWh of biofuels in 2022. This is almost a fifth more than in 2021.

The EPSO-G Group consists of the management company EPSO-G, its five direct subsidiaries “Amber Grid”, “Baltpool”, “Energy cells”, “Litgrid” and “Tetas”, and the indirectly controlled “GET Baltic”. At the end of last year, the EPSO-G Group had 1 271 employees.

Last updated: 15-02-2023