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Litgrid profit increased twofold in the first half of 2013

Litgrid profit increased twofold in the first half of 2013

In the first half of 2013, the Litgrid group’s pre-tax profit exceeded 30 million LTL and was more than twice as big as the previous year’s six-month pre-tax profit, which equalled 13.5 million LTL.
“Thorough analysis and effective restructuring of key processes over the past three years have changed losses into sustained profitability. Strict cost control, cost-effective procurement, meticulous planning of investment and operational projects, and significant increase in revenue from system services resulted in increased Litgrid group’s profit for the first half of this year more than twofold,” says Virgilijus Poderys, CEO of Litgrid, Lithuanian electricity transmission system operator.
The Litgrid group’s revenue for January – June 2013 was 258 million LTL, i.e. almost 10 per cent greater than the revenue earned during the first half of 2012. The largest portion of the group’s total revenue, 44 per cent, consisted of income for the transmission of electricity over high voltage networks.
“Revenue of Litgrid depends on the quantity of electricity transmitted over the high-voltage electricity transmission network—that is, from the demand for electricity. Growing power consumption means greater flows of transmitted electricity. In this half of the year, the increased electricity consumption was caused by the country’s industrial growth,” says Mr. Poderys.
Bigger revenue indicates increase in electricity consumption in the country, which was 3.4 per cent greater during the first half of this year than during the same period in 2012. The greatest increase in consumption, almost 9 per cent, was recorded in the industrial sector. Litgrid transmitted 4.6 billion kilowatt hours (kWh) of electricity over high-voltage equipment for the country’s needs during the first half of 2013, or 1.5 per cent more than in the first half of 2012.
During the first half of 2013, investments made by Litgrid, the transmission system operator, equalled more than 62 million LTL. A large part of the investments, 60 per cent, were earmarked for implementation of strategic projects, while the remaining part was invested in reconstruction and development of the country’s transmission network. Litgrid implements strategic Lithuanian electricity projects, international electricity links NordBalt (Lithuania-Sweden) and LitPol Link (Lithuania-Poland), and is also responsible for full-fledged integration of the country’s electricity system into European Continental Network and the common European electricity market.
The Litgrid group consists of AB Litgrid, the electricity transmission system operator; UAB Baltpool, the operator of energy exchange; and UAB Tetas, which performs technical maintenance of electrical equipment.
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