VILNIUS. The sole shareholder of the holding company EPSO-G, Ministry of Energy, approved the audited consolidated report on the company’s financial activities of the year 2018, got familiar with the annual statement ad approved the profit’s distribution in the annual meeting held on the 30th of April, Tuesday.
The audited consolidated income of the group EPSO-G in 2018 increased by 9.1 percent up to 245.8 million euros, when compared to the same period last year. This was mainly affected by the increased amount of transmitted electricity and natural gas to the domestic users and users from the neighbouring countries.
The expenditure of the group’s performance increased by 39.5 million euros in 2018 – up to 229.5 million euros, leaving the expenses of property’s reappraisal unaccounted. The growth of expenditure was determined by the prices of systemic services and energy resources that had grown by 41.4 million euros. The growth of expenditure of energy resources and related services made 41.4 million euros in 2018. If compared to the year 2017, other expenditure of the group’s performance decreased, when assessed together,
The net profit of the group EPSO-G (EBITDA) reached 55.3 million euros. It is smaller by 28.4 percent if compared to 77.2 million euros in 2017. This was mainly affected by lower transmission rates of electricity and natural gas applied from the beginning of the year – 7.1 and 35.5 percent respectively.
The index of net profit was mainly affected by the property’s reappraisal performed with regard to the influence of the changes in regulatory environment made in 2018 on the future income. Thus, due to reduced value of non-current intangible assets of “Litgrid” and “Amber Grid” by 88.7 million euros, the consolidated net losses of the group EPSO-G reached 47.7 million euros in 2018. Without influence of the reduced value of the assets on accounting and changed surplus price of “Litgrid”, the group’s normalized net profit was 14.4 million euros in 2018, while the index of return on equity (ROE) reached 6.8 percent.
It should be noted that the amount of physically controlled assets of the groups and their characteristics have not changed, whereas reduced value reflects only assessment of potential to gain income on the ground of conservative presumptions.
The average normalized return on equity of the group EPSO-G in 2016-2018 was 11.3 percent, i.e., it was 2.5 percent higher than 8.8 percent set by the Government of the Republic of Lithuania for the group for this period.
Following the resolution of the Lithuanian Government, the shareholder decided that EPSO-G would pay 750 thousand euros of dividends directly to the State budget (it paid 682 thousand euros for the year 2017), in order to safeguard sustainable financial status of the company while getting ready for important works of synchronization and integration of regional energy markets, and at the same time while implementing financial obligations to the State-owned company “Lithuanian Energy”.