In the first half of 2018, the turnover of the Latvenergo Group amounted to 450.2 million euros, a decrease of 6% compared to the same period last year.
The Group's profit before tax, interest and amortization (EBITDA) amounts to 187.5 million euros, which is 12% less than last year.
The electricity volume produced in the Group has reached 3139 GWh (GWh).
In the first half of 2018, the Latvenergo group responded effectively to the situation on the electricity market and demonstrated the importance of its production facilities, not only in Latvia, but also in the Baltic states.
In the first six months of 2018, the Group produced 3 139 GWh of electricity, which significantly increased the development of Riga TEC by 29% and reached 1 135 GWh.
For example, the Riga TEC has secured a region with the necessary electricity in conditions where the dry and warmer time of hydropower development was observed on the market.
The climatic conditions also had a negative influence on the development of the Daugava HPP – with a lower tributary it decreased by 12% compared to last year and is 1977 GWh.
Despite the reduction in the development of Daugava HPP, electricity from renewable sources accounts for 63% of total production.
The amount of heat produced in the first half of 2018 is 8% less compared to the first half of last year and reaches 1 442 GWh. The decline was influenced by the increasing competitive conditions with the arrival of four new heat sources in the thermal energy market in Riga.
During the reporting period, customers in the Baltic States sold a total of 3.3 TWh of electricity. Outside Latvia, the total number of customers reached almost 35 thousand, which sold about 1/3 of the total amount of electricity sold in retail.
During the reporting period sales volumes and the number of customers of the Latvenergo group continued to grow.
It is important to emphasize that opening up the natural gas market has made it possible to diversify the gas supply and thus ensure the most competitive price, which is especially important for Latvenergo, as the other largest natural gas consumer in the Baltic States.
In the first half of 2018, the group consumed a quantity of natural gas of 3.2 TWh and sold it to customers.
The turnover of Latvenergo Group in the first half of 2018 decreased by 6% to 450.2 million euros. The EBITDA of the Group in turn decreased by 12% and amounts to 187.5 million. euro.
The Group's profit remained at the level of last year at 97.4 million. euro.
The Strategic Development and Efficiency Program, which was introduced in 2017, in which the Group's processes are assessed, centralized and digitized, has a positive effect on the results of the Group.
The benefits of the planned effectiveness program are estimated at 30 million. EUR. The implementation of the efficiency program is more successful than originally planned.
The number of employees in the Latvenergo group since early 2017 has been reduced by 14% or nearly 600 employees. AS Sadales tīkls plays an important role in implementing the efficiency program.
The main activities of AS "Sadales tīkls" in the implementation of the efficiency plan are digitization, process evaluation, installation of smart meters for more than half a million households, reduction of the number of transport units and optimization of distribution bases.
In total, the number of employees of AS "Sadales tīkls" has been reduced by 500 employees.
The total investment of Latvenergo Group in the first half of 2018 increased by 4% compared to the first six months of the previous year and amounts to 96.6 million euros.
80% of the total investment was made in upgrading networks with the aim of ensuring higher quality and reliability of services. During the reconstruction of hydroelectric power stations of Daugava, which will guarantee their operation in the next 40 years, this semester has been invested 11 million euros.
Overall, by 30 June this year they amount to 139.4 million euros.
The "Kurzemes loks" project, which significantly increases the energy security in Kurzeme and Latvia as a whole, and further integrates the Baltic States into the Nordic electricity market, has invested 71.7 million euros in the third phase in total.
The "Third Electricity Transmission Interconnection between Estonia and Latvia" project will also be continued, which is an essential future energy infrastructure for the entire Baltic region.
During the reporting period, an agreement was signed with the general contractor and the development of the construction project and design was started.
On June 14, 2018, Latvenergo AS received the Platinum Sustainability Index and the highest overall rating in its 97.2% membership history.
The next mid-term review of the 2018 Latvenergo Group will be published on 30 November.