Moody’s Investors Service has assigned Baa1 credit rating with a stable outlook to EPSO-G – the energy transmission and exchange group. The assigned high investment grade rating reflects the strong financial position of the state-owned group, its relatively low debt level and the fact that the majority of its revenue derives from regulated transmission network activities.
According to its operational strategy, between 2022 and 2030, EPSO-G plans to invest around EUR 1.6 billion. More than half of the investment in the transmission infrastructure is expected to come from the European Union financial assistance and other grant-equivalent funding, with the remainder coming from own and borrowed funds.
“The received high credit rating will enable the group of companies to borrow on favourable terms on the financial markets, for example by issuing bonds, and will facilitate in diversifying the investment financing sources. The funds raised will be used to further strengthen Lithuania’s energy independence,” said Algirdas Juozaponis, EPSO-G Chief Financial Officer and Acting CEO.
In 2021, EPSO-G revenue totalled EUR 363 million, or was by one third larger than EUR 272 million in 2020. The performance of the Group was driven by increased revenue from electricity and gas transmission activities last year, the successful operation of gas and biofuel exchanges and the smooth implementation of strategic infrastructure development projects.
Last year’s net profit of EPSO-G remained stable at EUR 39.4 million, while in 2020 it was EUR 40.1 million, and EBITDA of the Group went up from EUR 74.5 million to EUR 79.6 million, over the same period. In 2021, EPSO-G invested EUR 97.1 million in the energy transmission infrastructure.
At the beginning of April, EPSO-G repaid early the outstanding debt of EUR 84 million to Ignitis grupė, thus fulfilling its obligations in exchange for shares of the transmission operator Litgrid. The final debt repayment was previously scheduled for autumn this year.
EPSO-G group of companies consists of the management company EPSO-G, its five directly owned subsidiaries Amber Grid, Baltpool, Energy cells, Litgrid and Tetas, and the indirectly controlled GET Baltic. EPSO-G holds 97.5% of Litgrid and 96.6 % of Amber Grid shares, and the rest of the shares are listed on Nasdaq Vilnius Stock Exchange.
The rights and obligations of the sole shareholder of EPSO-G are exercised by the Ministry of Energy of the Republic of Lithuania.