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AB Klaipedos nafta has released its September results

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LNG Industry,


AB Klaipedos nafta has reviewed its operating segments since the beginning of the 2Q20 and 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 the September 2020 comprised €2.6 million – is higher by €0.1 million or by 4.0% compared to September of 2019. The preliminary sales revenue was higher due to an increase in 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 nine months of 2020 comprised €23.8 million – the same level as compared to the same period of 2019.

The preliminary sales revenue of the company’s LNG terminal for September 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 LNG terminal for the first nine months of 2020 decreased by 38.5 %, due to the reduction of security supplement of Klaipeda LNG terminal from the 1 January of 2020.

The preliminary sales revenue of the company’s commercial LNG activity for the September 2020 comprised €0.2 million. If compared to the respective period last year, the preliminary sales revenue is higher due to business development project,s 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 nine months of 2020 comprised €2.0 million.

Total preliminary sales revenue of the company for the January - September 2020 amount to €58.5 million – lower by 24.2 % compared to the same period of 2019 (€77.2 million).

Comment by the company management

“The main factor, which influenced the total company‘s revenue result in January - September, 2020, was lower revenue of Klaipeda LNG terminal, following from the KN decisions, adopted in 2019, to optimise Klaipeda LNG terminal costs and reduce the cost of LNG terminal infrastructure for consumers, starting from 2020. Due to the implementation of this decision, KN revenue for the nine months period was lower by €20.1 million.”

“The operation of oil terminals continues to be further affected by the economic impact of COVID-19 as the period of negative oil refining margins continues due to the continuous lower demand for petroleum products. This affects the volumes of refinery operations and, consequently, leads to lower volumes of transit and handling of oil products, while maintaining the demand for long-term storage of oil products. Despite unfavourable market conditions, KN managed to achieve 4% higher oil terminal operating revenues in September 2020 compared to September 2019. Also, in nine months of 2020 company ensured preliminary revenues from the operation of oil terminals similar to the corresponding period a year ago. We hope that our long-term clients in Belarus will fulfil their contractual obligations for oil product handling and that political developments will not affect the dialogue on further cooperation in the next contractual period.”

Read the article online at: https://www.lngindustry.com/small-scale-lng/12102020/ab-klaipedos-nafta-has-released-its-september-results/

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