2024-04-20 09:43:35
The company explains last year’s financial indicators by the fact that LG made corporate income tax (CIT) payments to the state budget in the amount of 30.5 million euros for calculated dividends to shareholders.
Also, LG has carried out a revaluation of natural gas stocks, which were purchased at the end of 2022 at a price corresponding to the market situation at that time, thus fulfilling the requirements set out in the regulations of the Cabinet of Ministers for the supply of energy users during the announcement of the early warning and alert level.
The company was obliged to maintain stocks in the Inčukalna underground gas storage (IPGK) in the amount of 1150 gigawatt hours (GWh) for gas supply to households in the period from August 10, 2022 to April 30, 2023, reducing the reserved balance every month by the amount of natural gas actually delivered to households in the previous month .
At the same time, the announcement states that LG, as a public trader, was obliged to sell natural gas at a regulated tariff from January 1, 2023, when the tariff was approved, until April 30, 2023.
According to the tariff determination methodology, losses incurred by the public trader are compensated by including the price difference in the next tariff period. However, the next tariff period did not occur due to amendments to the law, nor was the transition from the regulated industry to market conditions that would compensate for the losses caused to the company in the regulated market.
Accordingly, LG is said to have had the right to receive compensation for the loss, but the company has not been granted such compensation. LG is continuing the negotiation process with the responsible energy industry authorities on a possible solution to this issue, according to a statement to the stock exchange.
At the same time, the company states that, despite less tension in natural gas markets and lower natural gas prices compared to 2022, natural gas consumption in 2023 both in Latvia and elsewhere in Europe still remains low.
This is mainly explained by the low activity in the industrial sector, the decrease in demand in the energy sector, warm weather and the overall decrease in economic activity in the Eurozone.
Also, at the level of the European Union, there is still a commitment to voluntarily reduce natural gas consumption by 15% in the period from August 1, 2022 to March 31, 2024.
In a statement, LG states that one of the biggest challenges for the company last year was the opening of the household natural gas market from May 1. Despite the competitors’ marketing campaigns and pricing policy, LG has worked on developing new products, carried out sales activities, and also significantly changed the customer service model, which is said to have yielded results – after opening the market, the company has retained 86% of the household customer portfolio compared to the customer number at the beginning of 2023.
Also, important work has been done in fulfilling the decision of LG shareholders made in 2022 regarding the sale of the company’s former subsidiary AS “Gaso”. The sale process was concluded in the summer of 2023.
It has already been reported that LG’s turnover in 2022 was 702.604 million euros, which was 32.5% more than in 2021, but the company’s profit increased several times and reached 40.824 million euros.
LG’s largest shareholders are Russia’s Gazprom (34%), Rietumu banka (28.97%), the German company Uniper Ruhrgas International GmbH (18.26%) and SIA Itera Latvija (16%).
It has already been reported that “Energy Investments”, owned by LG board members Aigaras Kalvītis, Elita Dreimanes and Egīls Lapsali, purchased 28.97% of LG shares from “Marguerite Gas II”, but in order to obtain funds for the next stages of share acquisition, “Energy Investments” these shares with repurchase rights was expropriated to “Rietumu Banka” as a financier. The contract for the disposal of a financial instrument provides for redemption conditions for a period of three years.
2024-04-20 09:43:35