Lithuanian electricity distribution company LESTO, which is a part of the state-controlled energy group Lietuvos Energija, during the nine months of 2014 has continued to invest in distribution network upgrade and increased customer service network effectiveness. This will enable to reduce the company’s costs and implement long-term strategy goals regarding increased network reliability and more efficient company’s performance.
During the nine months of 2014, LESTO investments reached LTL 222 million – this is 11.5 % more compared to the same period of 2013. LESTO has invested almost LTL 96 million in the distribution network maintenance and modernization, investments in the development of the network reached LTL 126 million.
"Bigger investments in the network upgrade reflect our aim to improve the quality of services and increase the reliability of electricity supply. Investments in network maintenance and upgrades increased almost one-third compared to last year. Whilst expanding services, our priority remains fast, smooth and comfortable connection of new objects to the grid. This year, the average connection time for residents shortened by almost 20 days, for business - more than a week," said Aidas Ignatavicius, CEO of LESTO.
During January-September of 2014 LESTO group‘s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) amounted to LTL 371.2 million – that is an increase of 4.5 % compared to the same period of 2013. EBITDA margin increased by 2.11 per cent points and amounted to 21.97 %.
The consolidated net profit of LESTO group for the nine months of 2014 amounted to LTL 76.3 million – 1.8 times more than in January-September of 2013 when it was equal to LTL 42.3 million. The consolidated net profit was influenced by the decrease in purchase costs of electricity and other related services. These costs amounted to LTL 1.093 billion, or 10.9 % less compared to the same period of 2013. Electricity costs have declined because LESTO purchased more electricity in the market.
According to A. Ignatavicius, during the third quarter of this year reshuffled customer service network will have a positive impact to the company's operational efficiency in the long term.
"Together with Lithuania Post and libraries we have offered customers more opportunities to use our services through self-service website and partner network. This will reduce our costs and increase our efficiency in the long term. Moreover, this will ensure more favourable electricity prices to our customers," said the head of LESTO"- says the head of LESTO.
LESTO group‘s revenue of January-September of 2014 amounted to LTL 1.69 billion and, compared with the same period of 2013, declined by 5.6 %. Revenues shrank due to the decrease of electricity prices to consumers.
The volume of network service during the reported period increased by 1.7 % and amounted to 6.178 billion kWh.
During the nine months of 2014 year 32 % of electricity network service volume was allocated to residents. Industrial and service institutions consumed 28 % and 11 % respectively, other objects – 29 %.
In January-September of 2014, excluding the influence of natural disasters (“force majeure”) the system average interruption duration index (SAIDI) per customer amounted to 53.82 minutes, while during the same period last year it was equal to 55.72 minutes. During the reported period of 2014, the system average interruption frequency index (SAIFI) per customer decreased from 0.74 to 0.69.
Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516.
