KN increased its loading volume and income

The first half of this year was financially successful for KN (AB „Klaipėdos nafta“) – the operator of oil products and liquefied natural gas (LNG) terminals. KN says the preliminary data says that the company has earned EUR 52.4 million, and its net profit reached EUR 10.2 million – an increase of 38% if compared to the same period of the last year.
 
In accordance with non-audited financial statements, the revenues received from activities of the oil products loading amounted to EUR 18.1 million in the first quarter of the year, i.e. 26% more than the amount earned in the same period of the last year.
 
In the first half of this year, Klaipėdos Nafta terminal and Subačiaus kuro bazė (Subačius fuel storage facility), where state fuel reserve is stored, reloaded to containers a total of 3.55 million tonnes of oil products, compared with the same period last year with a total of 3.2 million tonnes of cargo.
 
The growth of the loading results was mostly determined by the increasing flows of oil products from Belarus as well as the growing cargo turnover of the tank tracks loading sites.
 
Mindaugas Jusius, KN CEO, notes that the good results were achieved by assuring control of processes and expenses and increasing the operation efficiency.  “One of the examples is the fact that this year we have considerably reduced consumption of heat energy. The demand for heat energy per tonne was 12% lower than last year,” Mr. Jusius notes.
 
The preliminary data says that the LNG terminal earned EUR 32.5 million in revenues in the period from January to June, when the same period of the last year ended with EUR 34.98 million. The revenues of the LNG terminal are regulated and do not depend on the gasification volume. Whereas, the additional revenues received in the first quarter of the year as the result of recalculated gas consumption capacities of 2017 will have an effect when approving the revenues of the LNG terminal and the safety constituent of the next year.
 
Over the first quarter of this year, a total of 4.519 thousand MWh of gas was regasified and reloaded compared to 4.869 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.
 
“We positively evaluate the general results of the first half of 2018 in the context of the goals of the organisation, and this encourages our further coherent work aimed at creating added value for our partners and our shareholder – the state of Lithuania,” summarises the results Mindaugas Jusius and adds that these results would be impossible to achieve without the strong team of the company. “I am proud of our professional and motivated employees, who together can overcome major challenges,” added Mr. Jusius.
 
At the annual awards “Best employer of the year” organised by the daily “Verslo žinios” KN was elected as the best employer of 2018 in the sectors of transport and logistics. Best employers of the year were awarded based on the assessment of 3 groups of indicators: company stability, wages and reputation. The KN CEO highlights that this award obliges the company to pay more attention to the enhancement of the organisational culture of the company.
 
According to Mr. Jusius, over the first half of this year, the company has paid a great deal of attention to the support of the dialogue with the surrounding communities. 
 
“We have heard the comments of the surrounding communities regarding the odours resulting from our activities in the surrounding territories. The results of the odour dispersion modelling performed by the National Public Health Centre in May showed that the concentration of odours resulting from activities of the KN oil terminal does not reach the maximum allowed level of odour concentration in the air of residential and public territories. Although the nature of our activities does not allow full elimination of oil products odour during the process of loading, we understand that the odours of oil products are unpleasant, therefore, we are constantly searching for new solutions aimed at improving the quality of the environment. In Autumn, we are planning to present to the public a detailed environmental programme, and we are hoping this will enhance our constructive dialogue,” Mr. Jusius claims.
 
Environmental protection is one of the priority fields of KN, therefore, in the upcoming two years, the company is planning to invest about EUR 4.4 million into pollution prevention and various environmental measures as provided in the company development strategy until 2020.