INTER RAO Lietuva Group announces financial results for 1H 2016 – Good results despite the negative conditions in the markets

• Electricity trading volume increased to 2 131 in the 1H 2016 from 2 047 GWh in the 1H 2015.
• The electricity trading volume in Poland increased to 190 GWh in the 1H 2016 from 128 GWh in the 1H 2015.
• Group’s revenue from sales decreased by 3.8%, to EUR 82.78 million, compared to EUR 86.09 million in the 1H 2015, due to the negative factors in the markets and historically low wind speeds.
• Group’s gross profit decreased to EUR 10.76 million from EUR 13.84 million in 1H 2015.
• Operating profit reached EUR 7.25 million, versus EUR 10.45 million in 1H 2015.
• Group’s net profit was EUR 5.88 million, compared to EUR 8.64 million in 1H 2015.
• Group’s EBITDA was EUR 8.52 million while EBITDA margin decreased to 10.29 percent from the high 13.58 percent a year ago.

–  The results of the INTER RAO Lietuva Group in the first half of the year were influenced by some negative factors, which affected all the participants of the electricity market in the Baltics. Despite the highly negative meteorological conditions, the historically low wind speeds, the average lower and highly volatile electricity prices in the market, after introducing NordBalt and LitPol Link power interconnections and their multiple unplanned disconnecting, the Group reached good profitability results. The net profit of the Group was EUR 5.9 million and the net profit margin slightly decreased, but reached 7.1%. The Group has earned EUR 0.29 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Revenue from sales

Group’s sales decreased by 3.84 per cent in 1st half 2016, compared to the same period in 2015. Total revenue decreased due to on average lower and highly volatile electricity prices in the market, after introducing NordBalt and LitPol Link power interconnections and their multiple unplanned disconnecting during first half of 2016 (the NordBalt was not operational approx. 60% of time during the first half of 2016). At the same time Group’s cost of sales remained almost at the same level if compared to the 1st half of 2015. Despite the decrease in sales and invariable cost of sales, the Group’s gross profitability equaled to 12.99 per cent in the accounting period, if compared to 16.08 per cent in January-June 2015.

Group’s revenue from purchases and sales of electricity in the 1st half of 2016 amounted to EUR 80.5 million. Revenue from produced electricity sales accounted for EUR 2.2 million, a 25.5 per cent less than in the same period a year ago. During the accounting period, Vydmantai wind park, UAB has produced a lower amount of electricity compared to long-term average, due to highly negative meteorological conditions: historically low wind speeds.

Earnings

Gross profit of the Group in January-June of 2016 amounted to EUR 10.8 million, while the gross profit margin was 12.99 per cent (16.08 per cent a year ago).

Group’s operating profit over the same period accounted to EUR 7.2 million, while the operating profit margin decreased to 8.76 per cent from 12.14 per cent a year ago. As a result, profit before tax for the Group in the accounting period amounted to EUR 6.9 million compared to EUR 10 million in the 1st half in 2015.

Group’s net profit in the 1^st half of 2016 amounted to EUR 5.9 million, if compared to the profit of EUR 8.6 million for the same period year ago. The profit margin decreased from 10.04 per cent a year ago to 7.1 per cent in the accounting period.