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Klaipedos Nafta (0J1K)

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Monday 10 June, 2019

Klaipedos Nafta

AB Klaipedos Nafta preliminary activity and revenue results for the May 2019

AB Klaipedos Nafta preliminary activity and revenue results for the May 2019

In May 2019 AB Klaipedos nafta (hereinafter – the Company or KN) has reloaded 446 thousand tons of petroleum products in Klaipeda and Subacius oil terminals. During the first five months of 2019 the Company in total reloaded 2,420 thousand tons of petroleum products into its storage tanks.

Results in May were mostly influenced by the Druzhba pipeline incidents, which contributed significantly to the decline in oil product transit and had an impact on the results of oil product handling. The overall decrease in loading volumes for the five months were also affected by the lower quantities from ORLEN Lietuva oil refinery and by the lower transshipment quantities of heavy oil products transit during the first quarter of this year.

The preliminary sales revenue of the Company’s oil terminals for May 2019 reached EUR 2.3 million. The preliminary sales revenue for January – May 2019 of the Company’s oil terminals comprise EUR 12.9 million.

In May 2019 the Company’s Liquefied Natural Gas (LNG) terminals have re-gasified and reloaded 1,774 thousand MWh of natural gas. During the first five months of 2019 the Company in total re-gasified and reloaded 3,989 thousand MWh of the natural gas.

The preliminary sales revenue of the Company’s LNG Terminal for May 2019 comprised EUR 6.2 million (during the same period of 2018 – EUR 5.3 million). Revenue consists of the re-gasification tariff fixed part (for booked annual capacities) and variable part for amount of re-gasified LNG, reloading revenues and additional income related to impact of currency exchange for lease liabilities. The preliminary revenue of the LNG terminal for the first five months of 2019 comprise EUR 36.8 million and are higher by 34.8 per cent compared to the same period of 2018 (EUR 27.3 million).

Despite the external factors, total preliminary sales revenue of the Company in January - May of 2019 amount to EUR 49.7 million, or more by 11.9 per cent compared to the same period of 2018 - EUR 44.4 million.

Comment by the Company management:

The contaminated oil in the Druzhba pipeline had a wide-ranging impact on oil companies in neighboring countries. The direct impact of this incident was felt by all our major customers, which affected both the operation of the oil terminals of neighboring countries and the handling of oil at the oil terminals of KN respectively. Despite the fact that the full extent of this incident remains unknown, we hope that in June our clients will be able to cope with the challenges and maintain the planned volumes of activities. For its part, in spite of external factors, the KN continues to increase the competitiveness of its terminal through an investment program. At the end of May an important stage was reached in the operation of Company’s Oil Terminal in Klaipeda with the pilot loading of oil products into tanks at a new tank park. This is an important achievement in increasing the flexibility and competitiveness of the oil terminal. We hope that this will strengthen the results of oil handling in the second half of this year, and the Company will be able to evaluate the first results already in June.

In turn, the LNG terminal in Klaipeda has recently exceeded expectations, as not only existing customers are increasing booked capacities, but the Company has also managed to attract a new customer. This indicates that terminal customers have appreciated the possibility provided by the LNG terminal to respond flexibly to the rapidly changing situation in international LNG markets by diversifying their energy resource portfolios.

Petroleum products transshipment and LNG re-gasification and reloading:

 MayJanuary - May
 20192018Change, %20192018Change, %
Petroleum products reloaded, thousand tons446637-30.0%2,4203,078-21.4%
LNG re-gasification and reloading, thousand MWh1,7741,45022.3%3,9893,6997.8%

Petroleum products transshipment, LNG re-gasification and reloading volumes in 2019:

 JanuaryFebruaryMarchAprilMay
Petroleum products reloaded, thousand tons626454461433446
LNG re-gasification and reloading, thousand MWh471173961,4751.774

Preliminary revenue of the Company, EUR million:

 MayJanuary - May
 20192018Change, %20192018Change, %
Oil terminals’ activity2.33.3-30.3%12.917.1-24.6%
LNG terminal activity6.25.317.0%36.827.334.8%
Total:8.58.6-1.2%49.744.411.9%

   Jonas Lenkšas, Chief Financial Officer, +370 694 80594


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