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  • 2020 November 2 09:31

    KN increases its profitability

    Although 2020 has been a year of business challenges, even in these circumstances, KN has achieved higher operating profitability than in previous periods. During the first 9 months of this year, the KN Group earned 9,7 million adjusted net profit and this is 7,8% higher than in the corresponding period a year ago. The return on equity of the KN Group this year is 6 per cent – respectively, a year ago this indicator was 4,8 per cent, KN says in a press release.

    In January – September 2020, the KN Group earned 60,8 million Euros income (77,2 million Euros in respective period in 2019). Adjusted Group’s EBITDA for this period amounted to 36,8 million Euros.
     
    The net profit of the KN Group for the third quarter of this year was 2,9 million Euros and was 27 higher than in the second quarter of this year. In July – September, the KN Group earned 20,1 million Euro income (20,7 million Euros in 2019 Q3).
     
    “In April-June, full of challenges and uncertainties, which were strongly affected by the coronavirus pandemic and the correspondingly slow recovery of market participants’ expectations, we stabilized revenues and increased our profitability in the third quarter. We see that the biggest impact on the overall financial result of KN’s operations is made by the reduction of the LNG security component – by excluding this factor, we have been able to focus on operational efficiency and achieve higher adjusted net profit if compared to the same period last year,” says Darius Šilenskis,  CEO of KN.
     
    KN’s oil business is affected this year by oil refining margins still at historic lows, geopolitical circumstances, as well as the global coronavirus pandemic, which has reduced demand for oil products worldwide. Despite these difficult circumstances, KN managed to maintain close to last year‘s results in the oil business segment: KN earned 23,7 million Euros income (23,9 million Euros a year ago). The adjusted net profit from these activities was 6,7 million Euros (7 million Euros a year ago). Assessing the company’s and market analytics data, KN continues to be the most efficient company using the capacity of its oil terminals in the Baltic States.
     
    Global trends this year have also led to a significant increase in the demand for liquefied natural gas – LNG terminal users have also successfully used the opportunities provided by the infrastructure in Klaipėda to purchase energy resources at the most favorable market prices. This is reflected in the 27 per cent increase in regasification at the LNG terminal during the first 9 months of this year, reaching 16.4 TWh this year.
     
    KN earned 32,7 million Euros this year income from regulated activities. Since this year, the company has been implementing decisions related to the optimization of LNG operating costs and the reduction of the LNG security component for Lithuanian gas customers – by implementing this decision, KN’s revenue for the first nine months of this year is 20,1 million Euros lower.
     
    “This week, the LNG terminal has just started its seventh year of operation. We meet this symbolic time stamp with great optimism – the LNG terminal in Klaipėda is among the most efficient commercial LNG terminals in Europe, more than 70 per cent of the gas imported into the country this year was supplied through the infrastructure we manage. The potential is really great, both in terms of energy interconnection projects being developed in the region and in terms of small-scale LNG operations, which are being driven by the goals of a climate-neutral economy in the EU,” emphasizes the CEO of KN.

    KN’s commercial LNG segment, which consists of international LNG business development and LNG distribution station operations in Klaipėda, also already shows tangible results. During 2020, the KN Group earned 4,3 million Euros in revenue from these activities, which exceeded its expectations.

    “The rest of 2020 will also not be very easy for all business organizations. The new wave of COVID-19 is taking place around the world, which will continue to affect the expectations of the public and market participants, as well as the performance of individual segments of KN operations. The KN Group will continue to focus on ensuring a safe working environment for its employees and a correspondingly high quality of service for customers. Managing operational risks and ensuring business continuity in the context of the coronavirus pandemic will remain among the highest priorities of our activities,” emphasizes Darius Šilenskis, CEO of KN.




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