INTER RAO Lietuva announces 1Q 2013 results

• Revenue from sales decreased in the first quarter 2013 to LTL 196.3 million, compared to LTL 268.5 million in first quarter of 2012,mainly due to drop in demand in the region and increased electricity imports from Scandinavia
• Operating profit reached LTL 12 million, versus LTL 24,4 million in a year ago
• Net profit amounted to LTL 9.3 million and net profit margin to 4.7%, compared to respectively LTL 19.3 million and 7.2% in first quarter of 2012
• Electricity trading volume was 1263 GWh, compared to 1695 GWh in the first quarter of 2012
• The purchase and sale prices of electricity remained at the levels of 2012

–  INTER RAO Lieuva Group’s financial results in the first three months of 2013 were affected by the warm winter in Scandinavia which led to higher electricity production by hydro power plants and lower overall electricity demand in the whole region. The prices of electricity in Scandinavia were lower by 25% than in the Baltics boosting the export of electricity from Finland to Estonia, Latvia and Lithuania. This Scandinavian’s competition led to a decrease of our trading volumes to 1263 GWh and revenues to LTL 196.3 million in first quarter of 2013-Paulius Vazniokas, Director of Economics of INTER RAO Lietuva.

Key figures of IRL Group

Revenue from sales

INTER RAO Lietuva Group’s consolidated revenue in the first quarter of 2013 was equal to LTL 196.3 million, a 26.9% less than in the first quarter of 2012. Total revenue declined due to lower amount of electricity traded in the Baltic States, which was mainly due to a drop in demand in the region and increased electricity imports from Scandinavia.

Revenue from sales of electricity in the first quarter of 2013 amounted to LTL 191.5 million. Revenue from produced electricity sales accounted for LTL 4.5 million, a 25.4% less than a year ago. Electricity production in Vydmantai wind park is directly related to wind speed in the region, which was lower during the first quarter of 2013.

Expenses

Cost of sales in January-March of 2013 accounted to LTL 178.8 million, a 25.4% less than in during the first three months of 2012. The decline in cost of sales was due to the lower amount of electricity traded by the Group.

Cost of purchased electricity in the first three months of 2013 amounted to LTL 173.6 million. Cost of purchased electricity comprised 97.1% of total cost of sales. The purchase and sale prices of electricity remained at the levels of 2012.

Operating expenses in the first quarter of 2013 amounted to LTL 5.5 million, a 21.9% increase over a year ago. Operating expenses increased due to the completion of initial public offering and expenses related to the expansion into the retail electricity market.

Earnings

Gross profit in January-March of 2013 amounted to LTL 17.5 million, while the gross profit margin slightly declined to 8.9%  (10.8%  a year ago). Operating profit over the same period accounted to LTL 12.0 million, while the operating profit margin declined to 6.1% from 9.1% a year ago.

Net financial loss in the first quarter of 2013 amounted to minus LTL 1.0 million, a 3.7% increase over the net financial loss the same period year ago. Financial expenses were mainly comprised of interest expenses that were due to the stand-alone financing of wind energy parks.

Net profit in the first three months of 2013 amounted to LTL 9.3 million, a decline by 51.8% over the profit of LTL 19.3 million for the same period year ago. The profit margin decreased from 7.2% a year ago to 4.7%.

For more information please contact:

Jacek Jan Komar

Spokesperson

INTER RAO Lietuva

Phone +370 5 242 11 21

Mobile +370 662 52 287

E-mail j.komar@interrao.lt 

www.interrao.lt