Amber Grid revenues up 7 fold to EUR 25.9 million

152
3
Amber Grid revenues up 7 fold to EUR 25.9 million

The transmission services for the transport of natural gas was the biggest source of revenues, amounting to EUR 29.3 million. Revenues from gas flow balancing services contributed equally to the growth, as did the extremely high gas prices and the redistribution of gas flows in the system, with more gas transported to Latvia and Poland.

Revenue from gas balancing services was the main contributor to the significant increase. In the first half of 2022 it grew more than 7 fold to EUR 25.9 million EUR 3.4 million in the first half of 2021. The significant changes in revenues and expenses were due to the high natural gas prices, but did not have a significant impact on the financial results.

Amber Grid's EBITDA earnings before interest, taxes, depreciation and amortisation, for the first half of 2022, was EUR 15.5 million compared to EUR 17.8 million last year. Net profit was 7.5 million, compared to the same period last year's net profit of EUR 12.5 million. Lower profitability was due to lower gas transmission tariffs that were imposed on higher revenues in previous periods and high natural gas prices, which are the largest part of the energy used by Amber Grid for its operations.

The geopolitical changes influenced by the war in Ukraine have also fundamentally changed gas flows in the Amber Grid system. With the cessation of natural gas imports from Russia, the Klaip da LNG terminal became the most important gas access route to the Baltic region, which resulted in a redistribution of flows. Since May, gas shipments to Latvia have increased 14 fold, and there has been a start of the GIPL interconnector, also to Poland. The Lithuanian market is experiencing changes, shrinking by more than a third as a result of record natural gas prices. In the first half of 2022, the natural gas infrastructure operated by Amber Grid delivered about 11% more than in the same period in 2021, according to the Amber Grid. The prices for transmission services in 2022 have declined, which should be underlined by the EBITDA and net profit figures for the first half of the year, according to Gytis Fomininas, Amber Grid's CFO.

High gas prices and balancing gas flows have resulted in higher costs. This year's costs increased by a factor of 2.4 compared to the first half of 2021. The cost was for gas to meet the technological needs of the transmission system.

In the first half of 2022, 19.1 terawatt hours of TWh of gas were delivered to Lithuania, excluding transit to the K nigsberg region. This is a 24% increase compared to 15.4 TWh transported to Lithuania at the same time last year. 7.8 TWh of gas was transported via pipeline to Latvia for the needs of the other Baltic States and Finland, as well as storage in the In ukalnis underground gas storage facility. This is 14 times more than in the first half of 2021.

In 2022, three major changes were made: Lithuania stopped importing gas from Russia, another gas supply source was opened, the GIPL interconnector with Poland, and the Klaip da LNG terminal became the most important gas access route to the Baltic Sea. After leaving its former supplier in the east, the Lithuanian gas system has undergone a major reorientation and Amber Grid has ensured stability and reliability of the system.

The financial results of the Amber Grid are consolidated and include the results of the gas exchange GET Baltic. Amber Grid owns 100% of the share capital of GET Baltic.