Electricity and gas distribution company "Energijos Skirstymo Operatorius" (ESO), managed by the country's largest energy company group Ignitis grupė, UAB (
"The first quarter of 2020 is markedly different from any of the previous ones. The activities of many business sectors and companies operating in them have changed substantially and ESO is no exception. The COVID-19 pandemic affected not one particular sector or several sectors of the economy, but it had a much broader impact: the economy, health system, supply chains, consumption and other areas – essentially a part of the fundamentals that, when interlinked, affect each other as well. In any case, the operations of ESO, as an infrastructure company, must continue and have not stopped. Even during such periods, the distribution of electricity and gas must be secured, and supply interruptions must be restored in the shortest possible time,” says Mindaugas Keizeris, Chairman and CEO of ESO.
In parallel with the announcement of the quarantine, from 12 to 13 March, a storm Laura was raging in
The main source of ESO's revenue continues to be electricity transmission, which accounted for 82.5 % of the Company's revenue. Gas distribution revenue amounted to 9.8 % of the total revenue. During the reporting period, adjusted EBITDA amounted to
In the months of January through March of 2020, ESO connected more than 8,555 households to the electricity distribution network and remained at the same level as in 2019. The number of new customers connected to the natural gas distribution network decreased: in the first three months of 2020, 1,795 new customers were connected, which is 29,4 % less than in the same period of 2019 (2,543 customers).
Key indicators:
• ESO revenue in January-March of 2020 amounted to
• Purchase costs of electricity, natural gas and related services in the three months of this year amounted to
• During the reporting period, the purchase costs of electricity, natural gas or related services as well as depreciation and amortization costs amounted to
• In the months of January through March of 2019, ESO earned
• In the three months of this year, ESO's investments in electricity and natural gas distribution networks amounted to
• ESO owns about 126 thousand km of power lines, of which cable lines accounted for 31.4 % in the first quarter of 2020. It was 30.5 % in the first quarter meaning that the share of overhead lines decreased from 69.5 % in the first quarter of 2019 down to 68.6 % in the first quarter of 2020. In the months of January through March of 2020, the length of the gas pipeline network increased by almost 62 km up to total over 9.5 thousand km of gas distribution pipelines, compared to about 9 thousand km in the first quarter of 2019.
• Reliability indicators of electricity supply deteriorated significantly during the first quarter of the year. As storm LAURA, that raged in
• After elimination of the impact of the storm LAURA on electrical reliability indicators, in the months of January through March of 2020, a significant improvement in electricity supply reliability indicators compared to the same period of 2019 would be seen: the SAIDI indicator would reach 16.86 minutes and would be lower by 9.35 minutes compared to the same period in 2019 (26.21 minutes), whereas the SAIFI indicator would amount to 0.23 instances and would be lower by 0.12 instances compared to the same period of 2019 (0.35 instances).
• In the months of January through March of 2020, a significant improvement of the quality indicators of natural gas supply was seen compared to the period of January through March of 2019. Average duration of unscheduled gas transmission interruptions (SAIDI), with the impact of force majeure in the period of January –
Due to the impact of COVID-19
In assessing the potential impact of factors related to the COVID-19 pandemic on the Company's operations and performance, the Company's management assessed potential disruptions to cash flows, providing regulated services, attracting funding sources, potential reductions in electricity and gas consumption due to the economic slowdown, and the risk of COVID-19 infection of critical personnel and the risk of delays in ongoing projects. The assessment used all currently available information on the threats posed by COVID-19. It should be noted that the total impact of the COVID-19 pandemic on the Company's operations cannot yet be assessed, however, the Company's management did not identify any threats to the Company's business continuity when assessing the potential impact of key COVID-19-related factors on the Company's performance. The Company has taken steps to manage the emerging risks. The Company has developed and is implementing employee rotation and business continuity plans, first and foremost, in order to ensure the safety and health of employees and the continuity of electricity and gas distribution activities.
* The Company's EBITDA and net profit performance are presented after adjustments made by the management, eliminating the deviation of actual and regulated income and the effect of one-off factors. These adjustments are aimed at disclosing the performance of the Company's ordinary activities, excluding atypical, one-off factors or factors not directly related to the current period of operation. All adjustments made by management are disclosed in the Company's interim and annual reports.
Additional information: Representative for Public Relations
Attachments
- Interim financial statements and interim report for 3 months of 2020
- ESO results 2020 03 31
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