31.10.2013
AB Amber Grid Results for Q III of 2013

AB Amber Grid was established on 11 June 2013 pursuant to a resolution adopted by a General Meeting of Shareholders of AB Lietuvos Dujos in implementation of requirements of legal acts of the Republic of Lithuania providing for the unbundling of the natural gas transmission activity from other activities. By the aforesaid resolution the General Meeting of Shareholders of AB Lietuvos Dujos approved the Terms and Conditions of the Spin-off providing for a spin-off from AB Lietuvos Dujos (continuing its activities) of a Transmission System Operator company on the basis of assets, rights and obligations attributed to the gas transmission activity. AB Amber Grid started its full scale activity on 1 August 2013. In accordance with the requirements of the legal acts of the Republic of Lithuania, the Company is publishing its results for Q III of 2013. The AB Amber Grid condensed financial statements have been prepared in accordance with International Financing Reporting Standards. However, these financial statements have not been audited.

The AB Amber Grid EBITDA for Q III of 2013 amounted to LTL 10.4 million*, revenue – LTL 26.4 million, whereas the loss before taxes and net loss – LTL 2.8 million and LTL 1.2 million respectively. The loss of the activity for two months was mainly caused by the seasonality of the activity – in summer, revenue from the natural gas transmission service is the least, while expenses increase as gas systems are subject to intensive repair during the summer season.

Annual reduction in natural gas consumption observed for the latest years also impaired the results of the Company’s activity: AB Achema (-188 MCM), Lietuvos Energijos Gamyba, AB (-44.1 MCM), UAB Kauno Termofikacijos Elektrine (-30.3 MCM), and other customers. The total volume of natural gas transported to Lithuanian customers via the natural gas transmission system for 9 months of 2013 was 2,053.8 MCM, which is by 13.7% less than for 9 months of 2012 (2,379.1 MCM).

The total volume of natural gas supplied by transit to the Kaliningrad Region of the Russian Federation was 1,489.6 MCM – or by 4.1% less than for 9 months of 2012 (1,554.0 MCM).

‘We are satisfied with the results achieved for the first months of activity, because this outcome is better than we expected. For this, we particularly should be thankful to the customers and partners of our Company who had to adapt to changes that have taken place in the natural gas market’, said AB Amber Grid General Manager Saulius Bilys.

The Company’s total investments for Q III of 2013 amounted to LTL 15.4 million.

The construction works of the gas pipeline between Taurage and Klaipeda (approx. 103 km) were continued. This pipeline section is the component part of the investment project ‘Jurbarkas–Klaipeda Transmission Pipeline’, – construction of the Taurage–Klaipeda transmission pipeline with Klaipeda M&R-station No. 2.

The main objective of the project is to upgrade of reliability, to enhance safety, and to extend capacities of the natural gas transmission system in the region of Western Lithuania, to interconnect the Klaipeda liquefied natural gas terminal to the Lithuanian gas system, and to safeguard of the stable operational mode of the Lithuanian natural gas transmission system. It is expected that the operation of the transmission pipeline will start in November 2013. 

On 14 October 2013, the European Commission published the first list of the EU projects of common interests. Among 248 energy projects, three gas sector projects in the implementation of which takes part AB Amber Grid have been entered into this list: the Gas Interconnection Poland–Lithuania, the Capacity Enhancement of Klaipeda–Kiemenai Pipeline, and the Enhancement of Latvia–Lithuania Interconnection. This list highlights energy projects that are important for the formation of the common internal market of the European Union. Therefore, to reduce the duration of implementation of these projects, the time limits for planning procedures and procedures for the issuance of permits are being reduced and the right to apply for the EU support according to the EU Connecting Europe Facility (CEF) instrument is being granted.

According to data of 30 September 2013, AB Amber Grid was a party to contracts with 86 natural gas transmission system users, among them the largest Lithuanian industrial companies and electricity and heat energy production companies. Natural gas transmission system users also cover natural gas distribution system operators and natural gas supply companies which are supplying natural gas to households and other small natural gas consumers.

The composition of the Company’s shareholders as of 30 September 2013: E.ON Ruhrgas International GmbH (Germany) – 38.9%, OAO Gazprom (Russia) – 37.1%, the Ministry of Energy of the Republic of Lithuania – 17.7%, and small shareholders – 6.3% of shares.

The AB Amber Grid shares have been listed on the Secondary list of the NASDAQ OMX Vilnius Stock Exchange since 1 August 2013.

*LTL 3.45 = EUR 1

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