Presentation of the Company‘s performance and results QI 2017 Lietuvos Energijos Gamyba, AB (LEG) Eglė Čiužaitė 15/05/2017Vilnius
Content About the Company Most significant events in QI 2017 Market overview Company‘s performance indicators Company‘s financial results A glimpse into the future Your questions Presented by Moderated by EGLĖ ČIUŽAITĖ VALENTAS NEVIERA Chairwoman of the Board Head of Communication Planned duration: and CEO 20 min + Your questions 2
LEG provides services that are necessary for the energy system security ELEKTRĖNAI COMPLEX KRUONS PSHP KAUNAS A. BRAZAUSKAS HPP Production of electricity and heat Commercial production of electricity Commercial production of electricity System services System services (main – tertiary reserve), System services (main – secondary reserve) strategic reserve Capitalization Minority shareholders Shareholder structure 31/03/2017 – more than 96.75% - Lietuvos Energija, UAB € 405 L 5 900 3.25% - minority shareholders E million 3
LEG – reliable and modern company, important part of Lietuvos Energija Group LEG starts the chain of service value of Lietuvos Energija Group of companies Production Supply and trading Distribution Client services Services EURAKRAS TUULEENERGIA LEG has 404 Management SUPERVISORY BOARD 10% high system of LEG is competence in line with the employees in highest standards 15% total of Corporate 36% governance M. Keizeris D. Tučkus P. Vilkas practices 15% Chairman Member Ind. member 85% MANAGEMENT BOARD 85% 54% E. Čiužaitė D. Kucinas M. Kvekšas M. Gražys Chairwoman Member Member Member 4
Most significant events in QI 2017 6 25 1 January January March 7th unit was activated for the test Start of the decommissioning Renewal of the organizational of tertiary reserve services project of units 5 and 6 structure of LEG provision 8 24 31 March March March Decision to pay dividends for the First technical maintenance Finish of the decommissioning six-month period ended 31 services for external clients project of units 1 and 2 December 2016 5
Market overview: LEG power plants face high competition Electricity balance in Lithuania, Wholesale electricity prices in Intraday trading volumes in % of full demand NP Lithuania price zone the Baltic countries, GWh 2649 GWh 2710 GWh 100% 70 110 60 80% 50 60% 40 € /MWh 40% 30 +41% 20% 90 20 0% 10 2016 IQ 2017 IQ +34% 0 Other 1 2 3 4 5 6 7 8 9 101112 1 2 3 Wind power plants Axis Title 2016 2017 Kaunas A. Brazauskas HPP Kruonis PSHP Peak (6-22 h) 70 2016 IQ 2017 IQ Elektrėnai Complex Off-peak (22-6 h) Buy Sell Import NP LT price (0-24 h) 6 Source: Energijos tiekimas, Nord Pool
Market overview: prices of materials decreased, as well as pollution taxes Purchase price of gas 30 € /MWhA 20 10 Axis Title Purchase price of biomass 16 € /MWhA 12 8 Axis Title Price of CO2 emission allowances (EUA) 8 € /t CO2 6 4 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 Axis Title 2016 2017 Source: Company‘s accounting information, Platts 7 Remark: gas price – lwithout taxes for user capabilities and without constituent for security of LNGT
More production at Kaunas hydro power plant, less operation of other plants Generation of LEG power plants, GWh IQ 2016 34 153 118 +12% -82% -32% 6 104 132 IQ 2017 0 50 100 150 200 250 300 350 Elektrėnai Complex Kruonis PSHP Kaunas A. Brazauskas HPP 8
Decrease in revenue – in line with effective costs ‘ control IQ 2017 REVENUE – € 32.1 mln IQ 2017 COSTS – € 27.4 mln 40% decrease 22% decrease 21% 36% 3% 4% 19% 13% 31% 11% IQ 2016 IQ 2016 37% 3% 6% 9% € 35.2 € 53.3 6% 28% mln mln 4% 3% 15% 37% 8% 32% 20% 11% 3% 1% 7% 18% 25% Purchases of electricity or related services Revenue of sales of electricity energy and related services Gas, biomass and heavy fuel expenses Revenue of sales of heat production Depreciation and amortisation Revenue of sales of capacity reserve services Wages and salaries and related expenses Subsidies for strategic reserve Repair and maintenance expenses Revenue from other operations Emission allowance revaluation expenses Column2 Reversal of impairment of other non-current assets Column3 Other expenses Column4 Column1 9
Profitability of main activities increased EBITDA and EBITDA margin Net profit 20 50 15 45.2 38.8 15 28.3 10 7.3 5.8 € mln 10 25 % € mln 14 5.8 5 8.7 5 8.2 7.8 2.3 0 0 4 IQ 2016 IQ 2017 Commercial activities 0 Impact of regulators decisions IQ 2016 IQ 2017 Regulated activities Net profit EBITDA margin Net profit after the elimination of one-off factors and EUA EBITDA margin considering the impact of regulators decisions market price change 10
A glimpse into the future: long-term perspective Efficiency of Decommissioning Investment New main activities projects projects services 11
A glimpse into the future: things to follow in II-IIIQ 2017 Reserve services for 2018: • Regulation lags behind the market needs, therefore tertiary reserve auctioning for 2018 remains unclear, • Demand of strategic reserve? Kruonis PSHP Unit 5: • Public discussion on development perspectives to be initiated Compensation from Alstom: • No official information received Disputes with the regulator started in 2014-2015: • Several court decisions are expected Changes in management: • New member of the board in June 2017 12
A glimpse into the future : good news spring More production: Informing more frequently: Flood in river Nemunas, generation in Preliminary results – every month Elektrėnai (by CCGT) 13
Koliažas Thank You! Your questions? 14
Recommend
More recommend
