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2016-11-25

Grid Reliability Underpinning Growth in Litgrid Group‘s Income

Income of Litgrid Group for the nine months of 2016 totalled EUR 123.1 million, a 69% increase compared with the same period of previous year. The Group’s net profit increased 3.5 times, totalling EUR 12.4 million. Such financial results were largely determined by increase in transmission revenue, connection of new producers and other operating income as well as congestion revenues.
 
Income from electricity transmission accounts for the largest share (40%) of total income of the Group. A substantial increase of this income – by more than one-third to EUR 49.7 million - was driven by both larger quantities sold and higher prices. Other factors that contributed to the growth include the putting into operation of NordBalt and LitPol Link power links as well as the smooth operation of the transmission grid.
 
Costs of the Group in the period January-September 2016 were EUR 108.1 million (+58% year-to-year). The new power links have a significant impact on the cost growth as the demand for balancing electricity, system services, and covering of process losses has increased after they were put into operation. 
 
The Group’s EBITDA for the nine months of 2016 was EUR 36 million. The EBITDA has increased by EUR 14.5 million, or 68% year-to-year. There has been a rise in the return on capital ratio and the return on assets ratio as well: from 1.9% to 6.6% and from 0.7% to 3.5%, respectively.
 
“In addition to the cutting of operating costs, Litgrid seeks to achieve better operating results by a more efficient management of assets, improving competences, and encouraging employees to assume responsibility for the attainment of our goals”,- said Rimantas Busila, Director of Finance at Litgrid.
 
Litgrid’s investments totalled EUR 30 million during the nine months. They have been earmarked, in nearly equal parts, for the implementation of strategic projects and the reconstruction and development of the transmission grid. 
 
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