AB Klaipedos nafta (KN) has conducted a performance review of its operating segments since the beginning of 2Q20 and released revenue disclosures accordingly.
Regulated LNG activity in Klaipeda
The preliminary sales revenue of KN’s LNG terminal for April 2020 comprised €3.4 million (April 2019 – €5.8 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 LNG terminal for the first four months of 2020 decreased by 37.8% due to the reduction of the security supplement for the Klaipeda LNG terminal by 42% from the 1 January of 2020.
Commercial LNG activity (small scale LNG reloading station in Klaipeda and business development projects)
The preliminary sales revenue of KN’s commercial LNG activity for April 2020 comprised €0.2 million. When compared to the respective period last year, the preliminary sales revenue is higher due to business development projects consultation revenue and an increase in small scale LNG station revenue. The preliminary sales revenue of the company’s commercial LNG activity for the first four months of 2020 comprised €1.0 million.
KN’s total preliminary sales revenue for January – April 2020 amounted to €26.5 million. This figure is 23.2% lower than the figure recorded for same period of 2019 (€34.5 million).
Despite the continuous unfavourable trends in international markets due to COVID-19 impact and historically low oil prices, in April KN maintained stable volumes of operations, which had a positive impact on the sales revenue of each business segment. The main factor, which influenced the company’s total revenue result in January – April 2020, was lower revenue from Klaipeda LNG terminal, following the KN decisions, adopted in 2019, to optimise the Klaipeda LNG terminal’s costs and to reduce the cost of LNG terminal infrastructure for consumers, starting from 2020 annually.
Read the article online at: https://www.lngindustry.com/small-scale-lng/11052020/kn-releases-april-2020-lng-revenue-disclosures/