Litgrid results for the first half of 2018 – growing energy transmission demand and stable financial results
As the economy of Lithuania experiences growth, the demand for energy transmission is in the record high since 1992. In the first half of 2018, Litgrid volumes of electricity transmission via high-voltage networks for national needs amounted to 5 153million kilowatt-hours (kWh), which is 4.3 % more than in the same period of 2017. The volumes of transmission to customers of the electricity distribution operator amounted to 4 695 million kWh (+5% compared to the same period of 2017), and to other customers 458 million kWh (less -2.3 % compared to the same period of 2017).
Costs and expenses
Revenue earned by the Litgrid group in the first 6 months of 2018 amounted EUR 91.1 million, a 17% increase compared to the same period of 2017. Biggest impact on increased revenue was made by increased revenue from system services.
Revenue from electricity transmission decreased by 2.7 % (down to EUR 33 million) compared to the same period in 2017. Revenue from electricity transmission accounted for 36 % of the Group’s total revenue. The decrease in revenue has resulted from a 6.8 % lower price cap for the transmission services, but the loss of revenue was compensated by increased demand of electricity.
The Group’s operating expenses totalled EUR 87 million in the first half of 2018, which is 23 % more compared to the same period of 2017. These costs increased due to the increase of system costs, balancing (regulating) electricity costs, and compensating for electricity purchase technological losses in the transmission grid costs.
Profit
The EBITDA for the first half year of 2018 amounted to EUR 17.3 million. Compared to the same period of 2017, the EBITDA decreased by EUR 3.1 million, or 15%; the EBITDA margin decreased to 19 % (2017 H1: 26.1%).The Group’s net profit for the first half of 2018 was EUR 3.2 million (2017, first half: EUR 5.2 million).
Investment
In the first half of 2018 investments of Litgrid amounted to EUR 9.1 million, of which 38 % were earmarked for the implementation of strategic electric energy projects of high economic importance to the State, and 62% for the reconstruction and development of the electricity transmission grid.
Reliability of links
In the first half of 2018 the asynchronous connections operated reliably. Litpol Link was available to the market 96% (100% in the same period in 2017), and NordBalt was available to the market 96%, too (87% in the first half of 2017).