Cargo handling at KN terminals in 2M’18 increased by 21.5% Y-o-Y

In February, Klaipėda and Subačius terminals of KN (AB Klaipėdos nafta), the oil and liquefied natural gas (LNG) terminal operator, reloaded 18.4% more cargo than in the last year’s February, and, as of the beginning of the year, the cargo turnover increased by 21.5%, says press release of KN.

In February this year, Klaipėdos Nafta terminal and Subačius Fuel Base, where state fuel reserve is stored, reloaded 664 thousand tonnes of oil products, i.e. a growth of 18.4% compared with the same month last year with a total of 561 thousand of tonnes of cargo.

As of the beginning of the year, a total of 1.44 million tonnes of oil products was reloaded. That is 21.5% more than the last year’s results, when nearly 1.2 million tonnes were reloaded over two months.
It should be noted that in early 2017 the cargo turnover was lower because of a significant decrease in oil product flows from Belarusian oil processing plants.

“At the beginning of the last year, the company’s operations were affected by extremely unfavourable external factors. This year, operations of Belarusian factories are stable, therefore, over these two months, we have been observing a consistent growth in the cargo turnover and positive tendencies, related to increased flows of heavy fuel oil,” sumps up KN CEO Mindaugas Jusius.

The increased load of oil products resulted in higher revenues: Subačius and Klaipėda oil terminals generated EUR 7.8 million in preliminary revenues in January and February, whereas in 2017, this indicator reached EUR 5.4 million. The company’s total preliminary revenues of these two months reach EUR 19.8 million, a growth of 7% compared with the same months last year.

According to Mindaugas Jusius, although, on an overall basis, the first two months of this year were successful, the uncertainty in the global market of oil products and fierce competition with terminals of other Baltic states and Ukraine make the goal to maintain high profitability of the terminal this year’s challenge.

In February 2018, KN LNG terminal regasified and supplied to the system of natural gas a total of 328 thousand MWh, which is as much as 212% higher compared to the results achieved in February 2017. The amount of the natural gas regasified and supplied to the transmission system increased in this year’s February. It was influenced by consumption of natural gas in the state-governed energy sector, which also depended on weather conditions, i.e. relatively lower temperatures in February.

Over the first two months, a total of 591 thousand MWh of gas was regasified and reloaded compared to 890 thousand MWh regasified and reloaded in the same period last year. The scope of activities of the LNG terminal was lower due to lower terminal capacities ordered by terminal users.

The preliminary data says that the LNG terminal earned EUR 12 million in revenues in January and February, when the same period of the last year ended with EUR 13.1 million. The revenues of the LNG terminal consist of one twelfth of the fixed part of the regasification price for annual consumption capacities, which is approved by the National Commission for Energy Control and Prices for 2018, and the variable part of the regasification price for the amount of the regasified gas.