KN releases its 1H20 results
Published by Will Owen,
Editor
LNG Industry,
AB Klaipedos nafta (KN) has announced its unaudited consolidated and separate financial results for the six month period ended 30 June 2020 (1H20).
Results summary
- Group and company revenue for the first six months of 2020 comprised €40.7 million and €39.7 million respectively – lower by 21% and 22% compared to the same period of 2019 (€51.2 million and €51.2 million respectively).
- Financial net profit of the group and the company for the first six months of 2020 amounted to €9.4 million and €9.3 million respectively – 2.8 times and 2.7 times higher compared to the first six months of 2019 (€2.5 million and €2.5 million respectively).
- Adjusted net profit of the group and the company for the first six months of 2020 amounted to €8.2 million and €8.1 million respectively – higher by 74% and 72% compared to the first six months of 2019 (€4.7 million and €4.7 million respectively).
- Group and company EBITDA for the first six months of 2020 amounted to €26.6 million and €26.5 million respectively – lower by 17.6% and 17.9% compared to the same period of 2019 (€32.3 million and €32.3 million respectively).
- Group and company Adjusted EBITDA for the first six months of 2020 amounted to €14.2 million and €14.1 million respectively – higher by 24.6% and 23.7% compared to the same period of 2019 (€11.4 million and €11.4 million respectively).
Management comments concerning LNG activity
In 1H20, the same as during 2019, the group’s and the company’s net profit was significantly affected by fluctuations of exchange rate. The unrealised impact of exchange rates arose from 1 January of 2019 under the requirements of IFRS 16 ‘Lease’, which indicated the company to capitalise finance lease obligations and the major part of them is denominated in US dollars. Whereas all US dollar denominated lease liabilities relate to LNG terminal, the effect of unrealised exchange rate are reflected in the regulated segment. Revenue of the group for the first six months of 2020 compared to the same period of 2019 is lower mainly due to the reduction of LNG security supplement from 1 January 2020.
LNG regasification at Klaipeda LNG terminal still remains at a high level. However, revenue for the six months of 2020 comprised €22.1 million – lower by €13.4 million or 37.7% compared to the same period of 2019 (€35.5 million) due to the reduction of LNG security supplement by €13.4 million in 1H20. Compared to the same period of 2019, more income was generated due to much higher level of LNG regasification, which partially compensated the lower revenue due to the reduction of LNG security supplement.
During the first six months of 2020 revenue from commercial LNG activities comprised €2.5 million – higher by €2.4 million compared to the same period of 2019 (€109 000). Commercial LNG activities comprise of business development projects, including the company’s LNG terminal operator services provided at the Port of Acu terminal in Brazil and LNG reloading station in Klaipeda.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30072020/kn-releases-its-1h20-results/
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