VILNIUS. The state-owned energy transmission and exchange group EPSO-G earned EUR 69.4 million in revenueIn the first three months of 2020 with a continued focus on the implementation of strategic synchronisation and gas market integration projects. This represent a rise of 5.4 perent year-on year from EUR 65.9 million in the same period last year.
During this period, the net profit of EPSO-G group was EUR 11.9 million, a rise from EUR 7.4 million during the same period in 2019.
“Notwithstanding the declared quarantine due to COVID-19 virus at the end of the quarter, all companies of the group rapidly and efficently adapted to new operating enmironment ensuring the health and protection of their workers. Our operation were steady, the synchronisation and construction of the gas pipeline with Poland proceeded according to the plan and we met all our liabilities to contractors and other market participants.
The state emergency status introduced in Lithuania in the middle of March had no major impact on the Q1 financial results of the group – we earned more and were profitable. In the first three months of this period, the greatest impact on the financial results was due to the level of regulated prices of services and lower demand for power transmission due to warmer than usual winter season, especially in the heat production sector.
We continue to monitor and assess the impact of the economic solwdown on energy consumtion, thus the demand for transmission services. At this point we see no risk implications to the performance and finacial stability the group and are ready to respond accordingly if need be”, said EPSO-G CEO Rolandas Zukas commenting on the Q1 operating results.
Demand and quality of the services
In Q1 of this year, 2,646 million kilowatt-hours (kWh) of electricity were transferred by high voltage transmission networks for the needs of the country’s population and businesses. This is 2.5 percent less in comparison with the same period last year. The distribution network operator (Energijos skirstymo operatorius AB) transferred 2,432 GWh of electricity, i.e. 2.4% less than in 2019, to the consumers. Other customers directly linked to the transmission grid received 214 GWh of electricity or 3.6 percent less year-on-year.
During this period, 6,776 GWh of natural gas was transported to the Lithuanian consumers either by transmitting it to the gas distribution systems or directly to the systems users. This is 10.2 percent less compared to 7,549 GWh in the same period last year. The lower demand for transportation services was mostly affected by significantly lower demand for natural gas in the energy sector.
During the reporting period, 7,677 GWh of natural gas (in Q1 2019 – 7,982 GWh) were transmitted to the Kaliningrad Region of the Russian Federation. 118 GWh of natural gas (in Q1 2018 – 68 GWh) was transferred to the Republic of Latvia through the Kiemėnai gas metering station.
The power transmission grid and connections operated very reliably: during Q1 2020, there were no disruptions of energy supply due to high voltage transmission grid. The availability of the gas transmission system to the consumers stood at 100 percent.
The asynchronous links, that provide an option to import cheper electricity from northern countries, were also reliable. During the first three months of 2020, the NordBalt link with Sweden was available to the market 100 percent (in Q1 2019 – 100 percent). The LitPol Link with Poland was available 97 percent (in Q1 2019 – 100 percent).
In Q1 2020, the volume of trade of GET Baltic natural gas exchange amounted to 2,310 GWh, the increase of 64.2 percent compared to the same period last year. The greatest impact on the increased volume of trade was start of operation in Finland since the start of the year.
In the first three months of 2020, heat supply companies, independent heat producers and industrial companies in Baltpool Energy Resources Exchange traded 85.1 thousand TOE of biomass. This amount is 2.5 percent higher compared with the same period in 2019.
Revenue and costs
In the first three months of 2020, consolidated EPSO-G corporate group revenue from the transmission of energy increased 19.0 percent year-on-year to EUR 22.00 million accounting to 31.7 percent of the group’s total revenue.
The revenue from natural gas transportation services amounted to EUR 10.9 million or 15.8 percent of the total revenue of EPSO-G group. The decline was largerly affected by the lower tariff of transmission services and the lower demand for gas transmission services due to warmer weather.
During the three months of 2020, operating costs of EPSO-G amounted to EUR 56.1 million and were lower by EUR 0.1 million compared with the same period last year.
Operating profit before interest, taxes, depreciation, and amortization (EBITDA) of EPSO-G group amounted to EUR 21.4 million in the first three months of 2020, increasing 22.1 percent year-on-year. In Q1 2020, the EBITDA margin was at 30.8 percent compared with 26.6 percent in the same period a year ago.