INTER RAO Lietuva Group announces financial results for 1Q 2015 – Structural changes in trading business led to the overall better results

• Revenue from sales increased by 4.2%, to EUR 48.8 million, compared to EUR 46.9 million in the1Q2014,due to bigger amount of electricity traded in the Baltic States.
• Group’s gross profit increased by 25.3% to EUR 7.9million from EUR6.3million in1Q2014.
• Group’s EBITDA increased to EUR 6.9 million while EBITDA margin increased to 14.1 percent from 11.5 percent a year ago.
• Operating profit reached EUR 6.2 million, versus EUR 4.7 million in1Q2014.
• Group’s net profit increased to EUR 5.2 million from EUR 3.9 million in1Q2014.
• Electricity trading volume was 1 171 GWh, compared to 988 in the1Q2014.
• The electricity trading volume in Poland: 60 GWh, compared to 51 GWh in the entire 2014.

–  INTER RAO Lietuva Group makes the ongoing structural changes in trading business of the Group and purchases the electricity from diverse suppliers. The diversification of the suppliers of the traded electricity, with the market driven utilization of international transmission capacities and absence of artificial limitations, led to the overall better results. TheGroup’s net profit increased to EUR 5.2 million in the 1^st quarter of 2015 and was by 25 per cent higher than a year before. Net profit margin improved from 8.4% to industry normal 10.6%. The Group has earned EUR 0.26 per share, 6 EUR cents more than during the same period in 2014 – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Revenue from sales

The total consolidated Group’s sales revenue for the 1^st quarter 2015 was equal to EUR 48.8 million, a 4.2 per cent more than in the 1st quarter of 2014. Total revenue increased due to the higher amounts of electricity traded.

Group’s revenue from produced electricity sales accounted to EUR 1.8 million, a 7.7 per cent increase over the same period a year ago. Electricity production in Vydmantai wind park is directly related to wind speed in the region, which was higher during the 1^st quarter of 2015, what led to increase in electricity produced. During the first three months of 2015, the wind park produced 21 GWh, compared to 19.5 GWh in the same period a year ago.

Expenses

Cost of sales of the Group in the 1^st quarter 2015 accounted for EUR 40.9 million, of which cost of purchased electricity amounted to EUR 39.8 million (97.2 per cent of total cost of sales). Increase in cost of sales was significantly lower than increase in sales – 0.9 per cent, compared to 1^st quarter of 2014. Such an increase in costs of sales was mainly due to the ongoing structural changes in trading business of the Group when electricity traded is being purchased from diverse suppliers.

Earnings

Gross profit of the Group increased by 25.3 per cent and amounted to EUR 7.9 million, compared to EUR 6.3 million in the same period a year ago. Gross profit margin of the Group in the accounting period amounted to 16.2 per cent and was higher compared to a year ago, when gross profit margin was equal to 13.5 per cent.

Profit from operations for the Group in the 1^st quarter of 2015 was equal to EUR 6.2 million, compared to EUR 4.7 million during the same period in 2014. Group’s operating profit margin for the 1^st quarter of 2015 were equal to 12.7 per cent compared to 10 per cent in the 1^st three months a year ago.

As a result, profit before tax for the Group in the accounting period amounted to EUR 6 million compared to EUR 4.5 million in the 1^st quarter in 2014.

Net profit for the 1^st three months of 2015 for the Group amounted to EUR 5.2 million compared to EUR 3.9 million a year ago. The net profit margin for the Group in the 1^st quarter of 2015 was equal to 10.6 per cent compared to 8.4 per cent in the same period a year ago.