According to the consolidated annual account, earnings of Latvenergo concern in made up 681.767 million LVL in 2011, EBITDA – 180.729 million LVL, while current year profits made up 43.778 million LVL, the company reports.
It is noted that the data published by Lursoft on July 12 that shows earning of 658.499 million LVL, calling Latvenergo the most profitable concern in Latvia, is incorrect.
The company notes that there was a single deal made in 2011. This deal was unusual for Latvenergo – in accordance with EU regulations, transmission and distribution system operators were separated in the market value of 500 million LVL.
As a result of a directive request, shares of transmission system operator Augspriegums were sold to the Finance Ministry in the end of 2011 (the disposal of shares took place in the beginning of 2012) and Latvijas elektriskie tikli Company was founded as the owner of the shares of the transmission system operator. Current assets of Latvenergo that were necessary for carrying out these functions were invested in the daughter company. Similarly to the functions of the transmission system operator assets were invested in Sadales tikls. As a result of this process, Latvenergo earned 500 million LVL.
But, one thing should be taken into account. The EU regulation provides that network assets should be invested in network companies, and this deal is required to be performed according to the market value of these assets. «It was a necessary process that was obligatory for performing the accreditation of the transmission operator. Essentially, only according to Latvian accounting standards, this transaction is reflected in the profit – loss account, by international standards, this is not corporate profits,»- Latvenergo representatives say.
Seeing as though there are many commercial associations in the Latvenergo Concern, actual financial results are reflected in the annual consolidated account, which is available on the company’s website.
This year’s annual account data states that the earnings of Latvenergo Concern in 2011 were 681.767 million LVL, which is by 20% more than in 2010. The increase of earnings is mainly dictated by the successful work of the Baltic retail trade of electric energy. As a result of that the concern managed to realize 8 980 GW/h of electric energy, which is by 18% more than in 2010, and is the largest amount of electric energy realized in recent years.
EBITDA profitability of Latvenergo Concern was 27% last year (180.729 million LVL), which guaranteed a return for assets in the amount of 1.9%.
The company notes that it is important to stick to the specifics of the industry when commenting on the company’s profitability, as opposed to signs that the company is owned by the state and is being regulated.