Moody's Investors Service, the rating agency for the EPSO-G group of energy transmission and exchange companies, has affirmed its Baa1 credit rating with a stable outlook following a periodic review.
“Last year, we successfully entered the capital market with the first sustainability-related bond issue in the Baltics. This step allows EPSO-G to diversify its financing portfolio and makes a significant contribution to ensuring greater reliability of transmission networks, meeting sustainability objectives and reducing environmental impact”, says Mindaugas Keizeris, the CEO of EPSO-G.
According to Mr. Keizeris, the Baa1 investment grade credit rating is important for sustainable finances, which is one of the important prerequisites for securing financing for strategic energy projects and for expanding the diversification of financing in a period of intense investment.
Last year, EPSO-G issued a sustainability bond, raising €75 million. For the first bond issue of its kind in the Baltics, EPSO-G won one of the categories of the Nasdaq Baltic Market Awards 2023 - the most important event in the Baltic capital market.
EPSO-G's revenue in 2022 was EUR 590 million, a 63% increase 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 aimed at strengthening Lithuania's energy independence.
As a result of the increased costs, the EPSO-G Group's operating profit before interest, tax, depreciation and amortisation (EBITDA) was negative in 2022 at EUR -11.3 million, compared to EBITDA of EUR 79.6 million in 2021. 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, which takes into account the adjustment of transmission operators' results in subsequent years for prior periods, the difference between actual technological losses and the fixed price and other factors, remained stable at EUR 62.6 million. The Group's corresponding adjusted net profit was EUR 21.3 million last year and EUR 26.7 million 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. The rights and responsibilities of the sole shareholder of EPSO-G are implemented by the Ministry of Energy of the Republic of Lithuania.