INTER RAO Lietuva Group announces financial results for 1Q 2017 – Revenues increased, net profit reached EUR 2.6 million

• Revenues from sales in 1Q 2017 increased by over 5% y/y to EUR 48.52 million, thanks to higher volume of electricity sold.
• Group’s gross profit equalled EUR 4.85 million, versus EUR 6.25 million in1Q2016.
• Group’s EBITDA amounted to EUR 3.76 million versus 5.25 mln in 1Q 2016 while EBITDA margin  reached 7.8 percent compared to 11.4 percent a year ago.
• Operating profit reached EUR 3.14 million, versus EUR 4.61 million in1Q2016.
• Group’s net profit amounted to EUR 2.58 million compared to EUR 3.77 million a year ago.
• Electricity sales volume increased to 1 321 GWh, compared to 1 193 in1Q2016.
• The electricity trading volume in Poland: 80 GWh, compared to 78 GWh a year ago.

–  The results of INTER RAO Lietuva Group during the reporting period were mostly influenced by higher amounts of electricity sold and lower average prices realized in sales contracts. The sale prices were influenced by the challenging market conditions and the competition between the market participants after introducing the new power connections from Lithuania to Poland and to Sweden. At the same time the purchase prices stayed flat y/y. The Group has managed to sell more electricity thanks to signing more contracts with clients in Lithuania and Latvia, as well as better metrological conditions for producing electricity at the Vydmantai wind power plant. This led to a Gross profit on sales of more than EUR 4.8 million. The Group’s EBITDA stood at EUR 3.8 million and the net profit reached EUR 2.6 million with the margins of 7.8 and 5.3 percent respectively. The Group generated earnings of EUR 0.13 per share- says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Revenue from sales

The total consolidated Group’s sales revenues in January-March of 2017 increased by over 5 percent y/y to EUR 48.5 million. The increase in the amount of electricity traded came on the back of higher sales on the Lithuanian market and at the Latvian subsidiary thanks to new contracts with clients.

Total revenues increased thanks to higher amounts of electricity sold, but the price realized in contracts was lower and at the same time – purchase prices flat y/y. Group’s cost of sales in January-March of 2017 amounted to EUR 43,7 million, a 9,7 per cent increase when compared to the first three months of 2016. As a result of the higher amount of electricity traded, the cost of sales of the Group were higher compared to prior-year’s result, as the average electricity purchase price remained flat in annual terms

Revenues from electricity generation reached EUR 1.5 million, nearly 9 per cent more than in the same period a year ago. During the accounting period the Vydmantai wind park, UAB increased output in annual terms thanks to improved meteorological conditions.

Earnings

Gross profit of the Group in January-March of 2017 amounted to EUR 4.9 million (compared to the EUR 6.2 million in 1Q 2016), while the gross profit on sales margin decreased to 10 per cent (13.6 per cent a year ago).

Group’s operating profit over the same period amounted to EUR 3.1 million, while the operating profit margin decreased to 6.5 per cent from 10 per cent a year ago.

Group’s net profit in the period January-March 2017 amounted to EUR 2.6 million, compared to EUR 3.8 million for the corresponding period of 2016. The profit margin decreased from 8.2 per cent a year ago to 5.3 per cent in the accounting period.