KN presents its 2Q20 LNG revenue results
Published by Will Owen,
AB Klaipedos nafta (KN) has reviewed its operating segments since the beginning of 2Q20 and has presented revenue disclosures accordingly.
The operating segments of the company include:
- Oil terminals activity, that includes Klaipeda oil terminal and Subacius oil terminal.
- Regulated LNG activity in Klaipeda.
- Commercial LNG activity, that includes small scale LNG reloading station in Klaipeda and business development projects.
The preliminary sales revenue of the company’s oil terminals for July 2020 comprised €2.4 million – a decline of €0.5 million, or 17.2%, compared to July 2019. The preliminary sales revenue for this segment is lower due to a decrease of transhipment quantities of oil products, compared to the same period of 2019. The preliminary sales revenue of the company’s oil terminals for the first seven months of 2020 comprised €18.5 million and is the same compared to the first seven months of 2019.
The preliminary sales revenue of KN’s LNG terminal for July 2020 comprised €3.6 million (during the same month of 2019 – €5.9 million). LNG terminal revenue consists of the regasification tariff fixed part (for booked annual capacities), variable part for amount of regasified LNG and reloading revenue from regulated activities. The level of Klaipeda LNG terminal revenue (for booked annual capacities) does not depend on regasification volume. Revenue is confirmed by the National Energy Regulatory Council (NERC) based on the approved methodology of State regulated prices in the natural gas sector and is calculated for the whole upcoming year. The preliminary sales revenue of the LNG terminal for the first seven months of 2020 decreased by 37.7% due to the reduction of the security supplement for the Klaipeda LNG terminal from 1 January 2020.
The preliminary sales revenue of the company’s commercial LNG activity for July 2020 comprised €0.2 million. If compared to the respective period last year, the preliminary sales revenue is higher due to business development projects consultation revenue and increased small scale LNG station revenue. The preliminary sales revenue of the company’s commercial LNG activity for the first seven months of 2020 comprised €1.6 million.
Total preliminary sales revenue of the company for the January - July 2020 amounted to €45.9 million. This figure is 23.5% lower compared to the same period of 2019 (€60.0 million).
Comment by the company management
Despite the unfavourable external circumstances beyond control of the company in 2020, which were reinforced both by the COVID-19 pandemics and geopolitical environment, KN managed to maintain the same level of preliminary sales revenue from the oil terminals activity in January - July, 2020, as in the same period of 2019.
The main factor, which influenced the company‘s total revenue result in January - July 2020, is the reduction of the security supplement for the Klaipeda LNG terminal from 1 January 2020. With this decision the company contributes to the reduction of the cost of LNG terminal infrastructure for consumers in Lithuania. In the light of this decision, despite the record levels of LNG terminal in Klaipeda activities, the preliminary sales revenue of the LNG terminal for the first seven months of 2020 decreased by 37.7%.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10082020/kn-presents-its-2q20-lng-revenue-results/
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