INTER RAO Lietuva Group announces financial results for 1Q 2016 – After the extremely good year 2015, back to the results of the previous years

• Revenue from sales in 1Q 2016 decreased by 5.64% y/y to EUR 46.1 million, due to lower electricity prices in the Baltic States.
• Group’s gross profit equalled to EUR 6.25 million, versus EUR 7.9million in1Q2015.
• Group’s EBITDA amounted to EUR 5.25 million while EBITDA margin accounted for 11.4 percent compared to 14.05 percent a year ago.
• Operating profit reached EUR 4.6 million, versus EUR 6.2 million in1Q2015.
• Group’s net profit was EUR 3.8 million compared to EUR 5.2 million a year ago.
• Electricity trading volume was 1 193 GWh, compared to 1 171 in the1Q2015.
• The electricity trading volume in Poland: 78 GWh, compared to 60 GWh a year ago.

–  The results of INTER RAO Lietuva Group after the extremely good year 2015 came back to the level of the previous years. During the reporting period, new interconnections with Poland and Sweden were introduced and the electricity prices on the market were lower. Despite this, the amount of electricity traded by the Group was a bit higher than in the 1Q of 2015. Lower prices in the market determined revenues of the Group and thus the profits. However, the ongoing structural changes in trading business of the Group, when electricity traded is being purchased from diverse suppliers, allowed us to reach similar results as in 1Q of 2014. The Group EBITDA was EUR 5.3 million and the net profit reached EUR 3.8 million with the industry normal margins of 11.4 and 8.2 percent respectively. The Group has generated earnings of EUR 0.19 per share – 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 1st quarter 2016 was equal to EUR 46.1 million, a 5.64 per cent less than in the 1st quarter of 2015. Total revenue decreased due to the lower electricity prices in the market, after introducing NordBalt and LitPol Link power interconnections. The slight increase in the amount of electricity traded was mainly influenced by Estonian and Polish subsidiaries as those companies signed more contracts with their clients.

Group’s revenue from sales pf electricity produced in Vydmantai wind park accounted for merely EUR 1.4 million, versus EUR 1.8 million a year ago. Decrease in revenue from sales of produced electricity was related to the lower wind speed in the region during the 1^st quarter 2016. Electricity production in Vydmantai wind park is directly related to wind speed in the region, which in the 1^st quarter of 2015 was significant higher. In the 1^st quarter of 2016, wind park produced 16 GWh, compared to 21 GWh in the same period a year ago.

Earnings

Gross profit of the Group amounted to EUR 6.25 million, compared to EUR 7.9 million in the same period a year ago. Gross profit margin of the Group in the accounting period amounted to 13.56 per cent per cent and was lower compared to a year ago, when gross profit margin was equal to 16.18 per cent.

Profit from operations for the Group in the 1st quarter of 2016 was equal to EUR 4.61 million, compared to EUR 6.21 million in the 1st quarter in 2015. Group’s operating profit margin for the 1st quarter of 2016 was equal to 10.01 per cent compared to 12.72 per cent in the 1st quarter a year ago.

As a result, profit before tax for the Group in the accounting period amounted to EUR 4.44 million, compared to EUR 6 million in the 1st quarter in 2015.

Net profit for the 1st quarter of 2016 for the Group amounted to EUR 3.77 million compared to EUR 5.16 million a year ago. The net profit margin for the Group in the 1st quarter of 2016 was equal to 8.19 per cent, compared to 10.57 per cent the 1st quarter year ago.