AB Klaipėdos nafta Unaudited financial information for the twelve months of 2020 Vilnius Stock Exchange: KNF1L

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AB Klaipėdos nafta (hereafter – KN, the Company) announces the unaudited consolidated financial results (hereafter – the Group) and separated for the twelve months ended December 31, 2020.

  • The turnover for the 12 months of 2020 of the Group and of the Company is respectively 80.5 million euros and 77.5 million euros and is 22.9% and 25.6% lower compared to in the same period of 2019 (104.4 million euros and 104.1 million euros respectively).
  • The net profit of the Group and the Company for the 12 months of 2020 amounts to 32.9 million euros and 32.5 million euros respectively and is 4.3 times and 4.1 times higher compared to in the 12 months of 2019 (respectively € 7.6 million and € 7.9 million).
  • The adjusted net profit of the Group and the Company for the 12 months of 2020 amounts to 10.4 million euros and 10.0 million euros respectively and is lower by 18.0% and 23.7% compared to compared to the same period of 2019 (respectively 12.7 million euros and 13.1 million euros).
  • EBITDA for the 12 months of 2020 of the Group and of the Company amounts to 72.9 million euros and 72.1 million euros respectively and is up 10.7% and 8.9% from compared to the same period of 2019 (65.8 million euros and 66.2 million euros respectively).
  • The adjusted EBITDA for the 12 months of 2020 of the Group and of the Company amounts respectively to 50.3 million euros and 49.6 million euros and is lower by 29.1% and 30.5% compared to compared to the same period of 2019 (respectively 71.0 million euros and 71.4 million euros).

Main Group financial indicators comparing the 12 months of 2020 and 2019:

Financial results for 12 months of 2020 Change, compared to 12 months of 2019 Adjusted results for 12 months of 2020 Change, compared to 12 months of 2019
Returned 80.5 million euros -22.9% 80.5 million euros -22.9%
Net profit 32.9 million euros 4.3 times 10.4 million euros -18.0%
EBITDA 72.9 million euros 10.7% 50.3 million euros -29.1%

Management commentary:

During 12 months of 2020, as in 2019, the net income of the Group and of the Company was significantly affected by fluctuations in unrealized exchange rates. The unrealized impact of exchange rates results from the 1st January 2019 under the requirements of IFRS 16 “Leasing”, which instructed the Company to capitalize finance lease obligations and the majority of these are denominated in US dollars. While all lease commitments denominated in US dollars relate to the LNG terminal, the effect of the unrealized exchange rate is reflected in the regulated segment. The Group’s revenue for 2020 compared to 2019 is down mainly due to the reduction in the LNG safety supplement of the 1st January 2020.

LNG regasification at the Klaipėda LNG terminal (hereafter – LNG terminal) remains at a high level. The turnover for 2020 is 43.4 million euros and is 27.5 million euros or 38.8% lower compared to the same period of 2019 (70.9 million euros). The decrease in revenues was mainly determined by the Company’s decision to optimize the infrastructure costs of the Klaipėda LNG terminal, which respectively reduced the safety surcharge for Lithuanian gas consumers from the beginning of 2020 (26, 8 million euros per year). The decline in revenues is also attributable to the lower rate of return on investment (ROI) set for the Company for 2020, which was partially offset by higher regasification volumes.

For twelve months of 2020, revenue from LNG commercial activities was 5.7 million euros and was 4.3 million euros higher compared to the same period in 2019 (1.4 million euros). ‘euros). LNG’s business activities consist of business development projects, including LNG terminal operator services provided to the Açu port terminal in Brazil and the LNG refueling station in Klaipėda.

Oil terminal revenues for 2020 are 0.7 million euros lower compared to the same period in 2019. Due to the COVID-19 pandemic, which has had a negative impact on the demand for petroleum products, the period low unfavorable refining margins in the world has prolonged. Although this increases the demand for storage of petroleum products, transshipment volumes are negatively affected. All these unfavorable developments in international markets, as well as geopolitical developments in the neighboring region, have affected the performance of KN’s oil terminals. However, the Group has been able to cushion the unfavorable international environment by focusing on its operational efficiency and by diversifying its services, including petroleum product storage services, as well as the product portfolio.

However, it should be noted that in December 2020 the customer of the company BNK (UK) Limited informed about the temporary suspension of sales of petroleum products through Klaipėda. In the future, tenders announced by BNK Klaipėda will not be indicated as their point of sale. All contracts between BNK and the Company remain in force, but contractual obligations are suspended until further notice. At the time of writing, no transshipment of cargo of petroleum products from Belarus is offered by KN oil terminals for February or other periods. In the opinion of management, it can be assumed that Belarusian petroleum products will not be transhipped through the KN oil terminal in Klaipėda and, therefore, the company follows these assumptions for 2021.

Shut in:

  1. AB Klaipėdos nafta consolidated and individual financial statements for the 12-month period ended December 31, 2020.
  2. Presentation of the Group’s unaudited financial results for the 12-month period of 2020.

Jonas Lenkšas, Chief Financial Officer, +370 694 80594.

  • IFRS_2020_Q4

  • KN_activity results for_2020_Q4



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