Interim / Quarterly Report • Sep 25, 2020
Interim / Quarterly Report
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Raudondvario Rd. 84, LT-47179 Kaunas, Lithuania
| 1. | Reporting period of the consolidated interim report 4 | |
|---|---|---|
| 2. | Companies composing the group of companies and their contact details 4 | |
| 3. | Nature of core activities of the companies composing the group of companies 4 | |
| 4. | Issuer's agreements with credit institutions 5 | |
| 5. | Trade in securities of companies composing the group of companies in regulated markets 5 | |
| 6. | Overview of the condition, performance and development of the group of companies 5 | |
| 7. | Analysis of financial and non-financial performance results, information related to environmental issues 13 | |
| 8. | References and additional explanations 19 | |
| 9. | Significant events after the end of the reporting period 19 | |
| 10. | Plans and forecasts of activities of the group of companies 20 | |
| 11. | Information on research and development activities 20 | |
| 12. | Information on own shares acquired and held by the issuer 21 | |
| 13. | Information on the aims of financial risk management, hedging instruments in use 21 | |
| 14. | Information on the issuer's subsidiary undertakings 22 | |
| 15. | Structure of authorized capital 23 | |
| 16. | Data on shares issued by the issuer 23 | |
| 17. | Information on the issuer's shareholders 25 | |
| 18. | Employees 27 | |
| 19. | Procedure for amending the issuer's statutes 30 | |
| 20. | Issuer's management bodies 30 | |
| 21. | Information on significant agreements 35 | |
| 22. | Information on agreements of the issuer and its managerial body members or employees 35 | |
| 23. | Information on major transactions with related parties 35 | |
| 24. | Information on harmful transactions concluded on behalf of the issuer during the reporting period 36 | |
| 25. | information on compliance with the governance code of companies and the company's corporate social initiatives | |
| and policies 36 | ||
| 26. | Data on publicised information 36 |
Reporting period, for which the Consolidated Report of the Issuer was prepared, is the 1 half of the year 2020.
The Issuer prepares both the Company's and the consolidated financial statements. The group of companies (hereinafter referred to as the Group) consists of Kauno Energija, PLLC and its subsidiaries – Kauno Energija NT, LLC and Petrašiūnų Katilinė, LLC in which the Issuer directly controls 100 per cent of the shares of these companies.
| Name of the Company: | Kauno Energija, Public Limited Liability Company |
|---|---|
| Legal-organizational form: | Public Limited Liability Company |
| Headquarters address | Raudondvario av. 84, 47179 Kaunas |
| Code of legal entity: | 235014830 |
| Telephone | (8 37) 305 650 |
| Fax | (8 37) 305 622 |
| E-mail: | [email protected] |
| Webpage | www.kaunoenergija.lt |
| Registration date and place | August 22, 1997, Kaunas, Order No 513 |
| Register manager | Kaunas Branch of State Enterprise Centre of Registers |
| VAT payer code | LT350148314 |
| Company name | Petrašiūnų Katilinė, Limited Liability Company |
|---|---|
| Legal-organizational form | Limited Liability Company |
| Headquarters address | R. Kalantos str. 49, 52303 Kaunas |
| Code of legal entity | 304217723 |
| Telephone | +370 687 48413 |
| Registration date and place |
April 1, 2016, Kaunas |
| Register manager | Kaunas Branch of State Enterprise Centre of Registers |
| Company name | Kauno Energija NT, Limited Liability Company |
| Legal-organizational form | Limited Liability Company |
| Headquarters address | Savanorių pr. 347, 49423 Kaunas |
| Code of legal entity | 303042623 |
| Telephone | (8 37) 305 693 |
| [email protected] | |
| Registration date and place | April 16, 2013, Kaunas |
| Register manager | Kaunas Branch of State Enterprise Centre of Registers |
The nature of core activities of the Group is manufacture and rendering of services. The Company is the parent company of the Group. The Company generates and supplies heat to consumers (for the purposes of heating and hot water production) in the cities of Kaunas and Jurbarkas and in Kaunas district (Akademija town, Ežerėlis town, Domeikava village, Garliava town, Girionys village, Neveronys village, Raudondvaris village), (hereinafter referred to as Kaunas district).
Also, following provisions of the Law on Heat Sector, the Company supplies hot water (is engaged in hot domestic water supplier activities) from May 1, 2010 for consumers in the cities of Kaunas and Jurbarkas and Kaunas district (hereinafter the supplies of heat and hot domestic water without cold water are referred to as heat, with the exception of information provided in Tables 7 and 8), who chose the Company as a hot water supplier. As at June 30, 2020 the Company supplied hot water to 702 residential buildings in Kaunas and
Kaunas district, and 7 in Jurbarkas city. Income from hot water supplies amounts to approximately 6 per cent of Company's sales revenue.
In addition, the Company maintains engineering structures (collectors – manifolds) and operates heat and electricity production facilities. The Group and the Company carries out a supervision of indoor heat and hot water supply systems, maintenance of heat unit equipment, repairs of heat units and other heating equipment, provides premises rental services under agreements. The Group and the Company are engaged in licensed activity in accordance with the licenses held. On February 26, 2004 the National Commission for Energy Control and Prices (hereinafter – the Commission) issued a heat supplier licence to the Company. The licence is valid indefinitely. Maintenance of indoor heat and hot water supply systems is pursued following the provisions of Article 20 of The Law on Heat Sector of the Republic of Lithuania.
The vision of the Group and the Company is to be an effective, competitive, and added value for shareholders creating Company engaged in heat and cooling generation and their centralized supply, maintenance of indoor heating and hot water systems.
Kauno Energija, PLLC is the most advanced and innovative DH company in Lithuania.
On September 13, 2018 the Issuer Service Agreement with AB SEB Bankas (company code 112021238, Gedimino pr. 12, Vilnius), represented by the Finance Markets Department concluded.
20,031,977 (twenty million thirty one thousand nine hundred seventy seven) of the Issuer's ordinary registered shares (VP ISIN code LT0000123010) with the total nominal value equal to EUR 34,855,639.98 (thirty four million eight hundred fifty five thousand six hundred thirty nine euro and 98 cents) as at June 30, 2019 were listed in the secondary trade list of Nasdaq Vilnius Baltic stock exchange. The beginning of listing of the Company's shares is December 28, 1998.
During the 1 half of the year 2020 the Company performed its activities with a main focus on development of capacities of production facilities and increase of reliability of DH network, considering Strategic guidelines of centralized heat supplies of Kaunas city.
When planning its activities, the Company also considers the Kauno Energija, PLLC Strategy for the Heating System Development for the years 2007–2020 developed in 2016 by the Lithuanian Energy Institute under initiative of the Company. The main provisions and guidelines for heat supply to the city until 2021, reaching to ensure technical, economical and management effectiveness of the system of centralized heat supply and reliability of heat supply, without prejudice environmental requirements and considering provisions of Lithuanian legislation and obligatory aspirations of European Union (hereinafter – EU) directives are determined in the strategy.
On February 7, 2019, The Supervisory Board of the Company approved the "Adjustment report of Kauno Energija, PLLC Strategy, implementing the directions of the development of the energy sector until 2021".
The Company covers a major part of heat production and supply market in the cities of Kaunas and Jurbarkas and Kaunas district. Group's generation capacities consist of Company's boiler-houses capacities and subsidiary's Petrašiūnų Katilinė, LLC capacities in Kaunas city. Company's generation capacities consist of Petrašiūnai power plant, 4 boiler-houses in Kaunas integrated network, 7 district boiler-houses in Kaunas district, 1 boiler-house in Jurbarkas city, 14 boiler-houses of isolated networks and 26 local gas burning boilerhouses in Kaunas city (25 of them are gas burned and 1 of them – burned with pellets), also 8 local water heating boiler-houses in Sargėnai catchment. Total installed heat generation capacities of the Group consist of approx. 674 MW, and total energy generation capacity of the Group is approx. 683 MW (including 47 MW capacities of condensational economizers). Total installed heat production capacity of the Company consists of approx. 655 MW (including 47 MW capacities of condensational economizers), electricity generation capacities – 8.75 MW. From them 314.6 MW of heat generation capacities (including 17.8 MW capacities of condensational economizers) and 8 MW of electricity production capacities are in Petrašiūnai power plant. 34.8 MW of heat generation capacities (including 2.8 MW capacities of condensational economizer) is in Jurbarkas city. Total Company's power generation capacity is 664 MW (including 47 MW of condensational economizers' capacities).
Almost 27 per cent of heat supplied to consumers in the 1 half of the year 2020 was produced in Company's heat production facilities. The rest of required quantity of heat was purchased from independent heat producers (hereinafter – IHP) in monthly auctions, according to legal acts. Starting from May 2018 an electronic heat purchasing auctions are arranged by the Energy Stock Exchange operator Baltpool, LLC. Electronic auctions are carried out in accordance with the Regulations of the Heat Auctions approved by the National Energy Regulatory Council. The Schedule of the Procedure and Conditions for the Purchase of Heat from Independent Heat Producers, the Methodology for Determining Heat Prices, the Rules for the Provision of Information on Energy, Drinking Water Supply and Wastewater Treatment, Sewage and Surface Water Treatment Companies, a Summary of Conditions of Usage of Heat Transfer Networks, and a schedule of the Procedure for Publicly Disclosed Information were changed respectively.
Fuel used by the Company for heat production in the 1 half of the year 2020 is presented in Chart 1.
Chart 1
During the 1 half of the year 2020, the Company purchased heat from 12 IHP in Kaunas and Kaunas district as follows: from Kauno kogeneracinė jėgainė, LLC, Kauno Termofikacijos Elektrinė, LLC, Idex Taika, LLC, Idex Taika Elektrinė, LLC, Lorizon Energy, LLC, Ekoresursai, LLC, Petrašiūnų Katilinė, LLC, Aldec General, LLC, ENG, LLC, Idex Biruliškių, LLC, Ekopartneris, LLC and Foksita, LLC. Total purchases consisted of 534.5 thousand MWh of heat, i.e. 63 per cent of heat supplied to the network (in the 1 half of the year 2019 – 59.7 per cent). Amounts of heat purchased from IHP and produced with Company's equipment during the period of the 1 half of the years 2016–2020 are presented in chart 2, thousand MWh:
Chart 2
As at June 30, 2020 the Company supplied this produced and purchased heat with integrated and local heat supply networks to 3,582 businesses and organizations as well as to 117,356 households, in total – to 120,938 consumers (objects by addresses).
Chart 3
Company's investments in the latest technologies (the reconstruction of heat generation facilities installing economizers, new biofuel burned boilers, automation of boiler-houses of integrated network, systems of electronic services, system of remote reading of heat meters and data transmission, customer service using "one stop" principle, etc.) help the Company to reduce the price of heat sold. Reconstruction of heat supply networks reduces Company's heat supply losses. All these investments help the Company to adapt to market changes and to be an advanced company of heat and hot water supply, also of maintenance of heat production facilities in Kaunas and Jurbarkas cities and Kaunas district.
Investments are made in accordance with Company's investment plan for the year 2020, which was approved by decision No T-235 of Kaunas City Municipality Council of May 26, 2020 "Regarding investment plan of Kauno Energija, PLLC for the year 2020 and its financing" (hereinafter – Investment plan).
The Company implements trunk pipeline replacement projects co-financed by the European Union structural funds, optimizes pipeline diameters, connects new objects to the DHN and modernises heat production facilities according to Investment plan.
Amendments to the Law on Heat Sector of the Republic of Lithuania and changes in NCC's regulation allowed favourable conditions to invest to construction and reconstruction of heat production facilities, thus increasing competition in heat production sector and effectively reducing heat price for consumers.
In 2020 the Company will accomplish two projects, i.e. "Modernization of the main pipeline 6T of integrated network of Kaunas City" (code 04.3.2-LVPA-K-102-01-0010) and "Modernization of the main pipeline 1T of integrated network of Kaunas City" (code 04.3.2-LVPA-K-102-01-0024) according to the financial support agreements signed with the Lithuanian Business Support Agency (hereinafter – LBSA) in December 2016. The value of the projects is EUR 2.3 million, i. e. EUR 1.15 million is financial support from European Union.
On May 23, 2018 the Company signed 7 agreements with LBSA under the Measure No. 4 of the Priority 4 "Promotion of Energy Efficiency and Renewable Energy Production" of the EU Funds Investment Action Program for 2014–2020 No. 04.3.2-LVPA-K-102 "Modernization and development of heat supply networks":
• "Reconstruction of district heating networks in Chemijos and Medvėgalio streets of Kaunas city" (code 04.3.2-LVPA-K-102-02-0035).
These projects are anticipated to be accomplished in 2019–2020. The value of the projects is EUR 19.7 million, i.e. EUR 9.86 million of EU Structural support.
On November 16, 2018 the Company signed a contract with the LBSA for the financing of the project "Development of Kaunas city district heating network in the Aleksotas catchment" (code 04.3.2-LVPA-K-102-04-0001) under the Measure No. 04.3.2-LVPA-K-102 "Modernization and development of heat supply networks" of Priority 4 "Promotion of Energy Efficiency and Renewable Energy Production" of the EU Funds Investment Action Program for 2014–2020. The value of the project is EUR 3.8 million, incl. EUR 1.9 million of EU Structural support.
On November 16, 2018 the Company signed two contracts with the LBSA to finance the projects "Biofuel Boiler Installation in Raudondvaris Boiler House" and "Biofuel Boiler Installation in Jurbarkas Boiler House". A 1.5 MW capacity biofuel-fired boiler will be installed in Raudondvaris. The value of the project is EUR 0.5 million, incl. EUR 0.3 million of European Union Structural support. A 4.6 MW capacity biofuel-fired boiler will be installed in Jurbarkas. The value of the project is EUR 0.8 million, incl. EUR 0.5 million of European Union Structural support.
All these projects will be accomplished in 2020.
On March 2019 the Company submitted 10 applications under the 6th call of the measure 04.3.2-LVPA-K-102 "Modernization and Development of Heat Supply Networks" of 2014-2020 European Union Funds Investment Operational Program. Agreements under these applications were concluded with LBSA on August and December of the year 2019 as follows:
"Reconstruction of the main pipeline 1Ž of Kaunas city" (code 04.3.2-LVPA-K-102-06-0012);
"Reconstruction of the main pipeline 2T of Kaunas city" (code 04.3.2-LVPA-K-102-06-0014);
"Reconstruction of the main pipeline 4K of Kaunas city" (code 04.3.2-LVPA-K-102-06-0015);
"Reconstruction of junction of the main pipelines 4Ž and 1T of Kaunas city" (code 04.3.2-LVPA-K-102-06- 0016);
"Reconstruction of the main pipeline 4Ž of Kaunas city" (code 04.3.2-LVPA-K-102-06-0017);
"Reconstruction of junction of the main pipelines 5T and 6T of Kaunas city" (code 04.3.2-LVPA-K-102-06- 0018);
"Reconstruction of the main pipeline 7Ž of Kaunas city" (code 04.3.2-LVPA-K-102-06-0019);
"Reconstruction of the main pipeline 2P of Kaunas city" (code 04.3.2-LVPA-K-102-06-0013);
"Reconstruction of the main pipeline 9K of Kaunas city" (code 04.3.2-LVPA-K-102-06-0020);
"Construction of district heating network to Kaunas Free Economic Zone" (code 04.3.2-LVPA-K-102-06- 0007).
These projects are anticipated to be implemented in 2020–2021. The value of the projects is EUR 18.7 million incl. EUR 9.4 million of European Union Structural support.
By the order of the Minister of Environment, a subsidy was allocated from the funds of the Climate Change Program for the Company's project "Use of an Absorption Heat Pump and Installation of a Solar Light Power Plant at Petrašiūnai Power Plant". Using it, the Company's Petrašiūnai power plant will be equipped with a 499.8 kW photovoltaic solar power plant and a 2400 kW absorption heat pump. The value of the project is 1.523 million. EUR 0.445 million Eur.
Ministry of Environment also allocated 0.042 million Eur support for the installation of a 190 kW solar photovoltaic power plant for the Company's subsidiary Petrašiūnų Katilinė, LLC in March 18, 2020.
The implementation of these projects will reduce the fuel and electricity consumption of biofuel heat production facilities and will create conditions for reducing the price of heat produced and supplied to consumers.
A major part of Company's investments was assigned for modernization of heat supply networks and renewal of heat production boilers. Company's investments by funding sources of the 1 half of the years 2016–2020 are presented in Chart 4.
Chart 4
In order to operate effectively and reliably in creation the added value for shareholders, the Company is facing threats specific to the sphere of its activity, but also takes advantage of opportunities to work efficiently and effectively by exploiting the available potential. One of the biggest threats that the Company may face is a relatively high price for heat purchased from IHP, who are ranked as private business units committed to profit generation. Purchase of heat is pursued following valid law and the Description of procedure for purchase of heat from independent suppliers of heat approved by NCC. In turn, the Company invests extensively in modernization and construction of its own manufacturing facilities, to reduce the comparative costs of heat production. Thus, it takes advantage of the regulatory environment and reduces the energy purchase price.
Together with coming of new IHP the Company faced additional technical, economical, legal and other issues that need to solve: management of heat supply network and balancing of power of these producers in case of emergency stop of them, retaining of optimum working parameters of the network, regulation, change and applying of heat purchase from IHP order.
The Company is a major supplier of the heat produced centrally to the city of Kaunas, part of Kaunas district and the city of Jurbarkas. In order to retain this market, it is necessary to implement modern and efficient heat production technologies in own production facilities and to focus on production at the lowest cost, benefiting from private differences of different types of fuel.
Company's heat sales are directly dependent on heat demand, i.e. heat consumption, which is mostly affected by the average outdoor air temperature, the amount of investment of consumers in energy-saving and rational use of heat and the pace of development of the heat sales.
Changes in fuel prices and the price of heat, produced by IHP have an impact on cost of Company's heat and electricity production.
Company's performance is affected by the decline in sales due to reduced and further reducing heat demand (in pursuance of residential buildings renovation and by installing a heat saving equipment), due to consumer's disconnections from DHN (due to the various reasons). Risks can be mitigated by Company current and further investments in heat and electricity production facilities, using renewable energy sources, reducing heat production expenditures and the price heat, purchased from IHP as well as the price of heat supplied for consumers, and continually reasonably informing customers on the benefits of DHN systems (safety, reliability, correlation with one sort of fuel, fuel conversion, local pollution sources in residential areas, total environmental pollution, etc.) in comparison with autonomous heating.
The effects of other competing companies, propagating the only usage of natural gas, irrespective of approved special heating supplies plan, supplies reliability, affection to the only source of fuel, not yet regulated local pollution, in the heat supply sector with the Company are disconnections of consumers from DHN system. Heating equipment disconnection from the DHN and heating mode changes are carried out in accordance with the procedures specified in the "Rules on heat supply and consumption" approved by order No 1-297 of 25 October 2010 of the Minister of Energy of the Republic of Lithuania (and their further amendments) and the Description of procedure for disconnection of the building or heating facilities of premises from heat supply networks at the initiative of consumers approved by order No A 1830 of the director of administration of Kaunas City Municipality of 14 May 2012. Kaunas City Municipality has approved a special heat supply plan,
which provides a way to separate the heat supply in different urban areas. Disconnection of buildings in the district heating area from the DH network is only possible with the appropriate permit of Kaunas City Municipality. A special heat supply plan of Kaunas District Municipality was approved by the decision of Kaunas District Municipality No TS-43 of 26 January 2012. A special heat supply plan of Jurbarkas City and District was approved by the decision of Jurbarkas District Municipality No T2-67 of 10 March 2005.
Limited consumers' solvency and the debts. Risks can be mitigated by the factoring of debts and applying more stringent debt collection techniques / methods. Other possible operational risk – changes in interest rates in the banking market.
Detailed information on the risk management policy and credit, exchange rate, interest rate and liquidity risks is provided in the Note 22 of Kauno Energija, PLLC Consolidated and Company's Financial Statements of the year 2019.
During the 1 half of the year 2020 in comparison with the 1 half of the year 2019 heat consumers' debts decreased by 15 % and consisted of EUR 7.65 million in 2020. In the 1 half of the year 2019 they consisted of EUR 9.05 million. Decrease was affected by application of effective methods of debts administration.
To recover these debts as soon as possible, the Company actively uses a variety of legal debt management measures, such as pre-trial actions, judicial recovery and cooperation with law Companies. In addition, when a debt becomes big, a restriction of heat supplies is applied as a prevention measure (if there are technical possibilities and according to the law).
In all cases, the consumer is informed regarding his indebtedness first. When debtors respond to warnings, the options of debt settlement are discussed and the documents ensuring repayment of debt are signed. If the debtor does not respond to warnings and if pre-trial measures are not effective, the judicial recovery begins. The Company then applies to the court and after a decision accompanied with receiving-order – to bailiff. In such case the debtor must pay not only the debt but also the court and execution expenditures.
On January 2, 2018 the Kaunas Unified Service Center "Mano Kaunas" started its operations in Statybininkų str. 3, Kaunas, at the premises of UAB Kauno Švara. Here residents can get immediate information / consultation about Kaunas city services provided by municipality owned companies – AB Kauno Energija, UAB Kauno Švara, UAB Kauno Autobusai, UAB Kauno Butų ūkis, UAB Kauno Gatvių Apšvietimas and UAB Kauno Vandenys, as well as conclude contracts, pay invoices, requests, certificates, etc.
Activities of the Company are cyclical. During the heating season (October – April) a major operating income is earned. During the non-heating season, the Company's revenues are at their lowest since only heat for hot water is used. In addition, during the non-heating season, the Company incurs more costs because it must prepare for the upcoming heating season, i.e. to carry out the repairs and reconstruction of heat supply networks and heat production facilities.
Energy activities are governed by the Law on Heat Sector, the Law on Energy, the Law on Electricity, the Law on Natural Gas, the Law on Drinking Water Supply and Wastewater Management, Government resolutions, Heat supply and consumption rules, Methodology of heat prices and payments for heat of NCC and other legislation. Their amendments affect the heating industry.
With new amendments of articles 2, 3, 20, 22, 28, 31, and 32 of the Law on Heat Sector No XI-1608 of the Republic of Lithuania that came in affect from 1 November 2011, in accordance with Article 7, the heat and hot water prices may not include any costs related with the indoor building heating (including heat units), and hot water systems. In implementing the legislation, from 1 November 2011, all these costs directly reduce the profit of the Company.
Legal conformity risk is a risk of increase in losses and (or) loss of prestige, an (or) decrease in confidence, which can be determined by the external environment factors (for example, violation of external legal acts, non-compliance of requirements of supervising institutions, etc.) or internal factors (for example, violation of internal legal acts and ethical standards, cases of employee's abuse, etc.).
Consumers' disconnections from the system of centralized heat supply can have a negative impact on Company's operations. Consumers, whose total consumption capacity consisted of 0.31 MW disconnected in the year 2019. The limited purchasing power of household heat consumers and its slow growth, unemployment and the exceptionally negative opinion about the district heating supplier, which has been formed in the public for a long time, also have a negative impact on the Company's operations.
However, an increased number of consumers from 119,490 in the year 2018 to 120,015 in the year 2019 had a positive impact on Company's activities.
Company's activities are socially sensitive to many Kaunas region residents and businesses due to the conditionally high costs for heating and hot water. These costs constitute a significant part of expenses for households. But as the price of heat sold is decreasing, number of complaints regarding big bills also decrease. This decrease was determined by the latest Company's investments in production facilities that allowed reducing the prices of heat and hot water significantly. As measured in terms of Lithuania, the Company's heat price in the 1 half of the year 2020 was less than an average heat price of all heat supply companies.
This risk is mitigated by reasonably informing consumers on Company's activities. Articles on Company's activities are coherently published in Company's website and in national or local media. The Company analyses consumer's complaints, provides written responses, consults consumers verbally (both in Company's premises and in Kaunas Unified Service Center "Mano Kaunas"), also by the telephone and e-mail. Heat consumers periodically are invited to meet Company's specialists and discuss consumer issues related to the Company's activities. Thus, an image of modern and socially responsible company is being created.
The biggest process risks are so shaded with the condition of heating systems. Company's trunk pipelines are an average about 40 years old. Modernization rate of them is determined by lack of funds – it is necessary to reconstruct more than 13.5 km of pipelines per year to condition of age of heat supply system and the minimum investments should consist of approximately 6 million euros. Hydraulic testing identifies their weakest points. Every year, about 200 points where cracks occur are identified during the tests. Upon discovery of defects, pipes are exposed and promptly repaired.
Mains of heating networks in the most worn out places are reconstructed using support from the EU Structural Funds. New industrially (polyurethane foam insulation in polyethylene shell) insulated pipes not requiring concrete channels are mounted in the reconstructed sections of the heat supply network. Heat loss is very low in reconstructed sections (process level), while the pipelines no longer pose a threat of rupture and ensure reliable heat supply to consumers.
One of the technical risk factors for heat generation facilities is their age. Some of heat generation facilities are already renewed at the moment. Every year boiler repairs and preventive work is carried out during the non-heating season. They are necessary to make secure heat supplies and reliability, i.e. securing of heat production facilities and fuel reserves.
More detailed information on Company's production facilities modernization is provided in chapters on operations and development.
Technological risk can be mitigated by reconstructing heat production facilities and supply pipelines, utilizing the latest and advanced technologies and thereby increasing the efficiency of the thermal system, capacity of
own heat production facilities necessary for secure of reliability. In addition, significant investments in the modernization of the Company's assets must be made according to the country standards and regulations in line with European Union standards and normative acts regulating qualitative and technical indicators of heat supply systems.
With respect to the Company they may be divided into those affecting the Company and affected by the Company's operations.
In order not to adversely impact the environment and comply with the pollution limits, vibration and noise values, the Company is guided by the requirements of the Kyoto Protocol, the Helsinki Commission (HELCOM) and environmental constraints of Helsinki Convention, as well as the European Parliament and Council Directive 2001/80/EB of regulating energy emissions and Lithuanian environmental normative document LAND 43-2013 for the use of natural resources, and releases and emissions of air pollutants to the environment in its activities. Main sources of pollution of the Company: burning fossil fuel in the Company's heat sources, production of heat and waste water, are used in the industrial processes.
The Company pays taxes for atmospheric and water pollution. If allowable emission rate limits or annual limits are exceeded, the Company would pay the fines under the applicable laws of the Republic of Lithuania. The Company was not imposed any penalties in the 1 half of the year 2020.
Main Company's emission reduction measures: modernization of heat generation facilities, heat transfer loss reduction by replacing the existing pipes with the pipes with polyurethane foam insulation, installation of new technology and improvement of existing technological equipment, use of less polluting fuels, and continuous emission monitoring (the fuel balance in the 1 half of the year 2020 was dominated by the solid biofuel – 73.2 %, natural gas – 26.6 %, other fuels – 0.2 %).
Company's sales revenue of the 1 half of the year 2020 was EUR 25,251 thousand and compared to the 1 half of the year 2019 decreased by 26.69 per cent (in the 1 half of the year 2019 it consisted of EUR 34,443 thousand). Sales revenue of the Group of the 1 half of the year 2020 was EUR 25,247 thousand (in the 1 half of the year 2019 it consisted of EUR 34,437 thousand).
This change was mainly affected by the decrease in heat price, the main part of which consist of fuel and purchased heat constituents, as well as decreased amount of heat sold. The amount of heat sold in the 1 half of the year 2020 was at 7.27 per cent less in comparison with the 1 half of the year 2019. The average price of heat sold decreased by 20.68 percent in the 1 half of the year 2020 (in the 1 half of the year 2020 it was 3.95 ct/kWh, and in the 1 half of the year 2019 – 4.98 ct/kWh).
| Table 1 | ||||||
|---|---|---|---|---|---|---|
| No | Indicator of the Group | 1 half 2016 |
1 half 2017 |
1 half 2018 |
1 half of 2019 |
1 half of 2020 |
| 1 | Revenue from sales, thousand euros | 36,184 | 35,313 | 38,214 | 34,437 | 25,247 |
| 1.1 | Including: Heat energy | 34,514 | 33,594 | 36,154 | 31,806 | 23,322 |
| 1.2 | Electric energy | 38 | 0 | 0 | 0 | 0 |
| 1.3 | Maintenance of indoor heating and hot water supply systems, heating substation facilities |
5 | 3 | 5 | 6 | 6 |
| 1.4 | Income from the maintenance of collectors |
113 | 125 | 125 | 125 | 124 |
Comparison of financial indicators of the Group of the 1 half of the year 2020 with the indicators of the 1 half of the years 2016–2019 is presented in Table 1.
| KAUNO ENERGIJA, PLLC CONSOLIDATED INTERIM REPORT FOR THE 1 HALF OF THE YEAR 2020 | ||
|---|---|---|
| No | Indicator of the Group | 1 half 2016 |
1 half 2017 |
1 half 2018 |
1 half of 2019 |
1 half of 2020 |
|---|---|---|---|---|---|---|
| 1.5 | Hot water supply including cold water price |
1,374 | 1,430 | 1,728 | 1,713 | 1,581 |
| 1.6 | Income from maintenance of hot water meters |
140 | 161 | 202 | 210 | 214 |
| 2 | Profit, thousand euros | 7,185 | 6,160 | 5,514 | 2,600 | 198 |
| 3 | EBITDA (earnings before interest, taxes, depreciation and amortization), thousand euros |
10,667 | 10,089 | 9,507 | 6,483 | 4,322 |
| 4 | Profitability of core business, per cent (operating profit / sales and services) * 100 |
15.0 | 15.8 | 13.1 | 7.0 | -0.4 |
| 5 | Net profitability, per cent (net profit / sales and services) *100 |
19.9 | 17.4 | 14.4 | 7.6 | 0.7 |
| 6 | Assets, thousand euros | 132,473 | 144,418 | 146,835 | 149,712 | 151,076 |
| 7 | Equity, thousand euros | 87,247 | 88,642 | 91,518 | 91,497 | 90,023 |
| 8 | Return on equity (ROE), per cent (net profit / average equity) *100 |
8.7 | 7.4 | 6.5 | 3.1 | 0.2 |
| 9 | Return on assets (ROA), per cent (net profit / average assets) *100 |
5.4 | 4.4 | 3.9 | 1.8 | 0.1 |
| 10 | Asset turnover ratio (sales and services / assets) |
0.27 | 0.24 | 0.26 | 0.23 | 0.17 |
| 11 | Return on tangible assets, per cent (net profit/ average value of tangible assets) *100 |
6.0 | 4.9 | 4.4 | 2.1 | 0.1 |
| 12 | Debt ratio (liabilities /assets) | 0.34 | 0.39 | 0.38 | 0.39 | 0.41 |
| 13 | Debt-to-equity ratio (liabilities / equity) |
0.5 | 0.6 | 0.6 | 0.6 | 0.7 |
| 14 | General liquidity ratio (short-term assets / short-term liabilities) |
2.46 | 1.43 | 2.10 | 1.79 | 0.91 |
| 15 | Quick ratio ((short-term assets inventory) / short-term liabilities) |
2.39 | 1.39 | 1.94 | 1.66 | 0.76 |
| 16 | Cash ratio (cash in hand and at bank / short-term liabilities) |
1.56 | 0.95 | 1.55 | 1.29 | 0.43 |
| 17 | Net earnings per share (net profit / average weighted number of shares in issue) |
0.17 | 0.14 | 0.13 | 0.06 | 0.03 |
| 18 | Equity per share, euros | 2.04 | 2.07 | 2.14 | 2.14 | 2.10 |
| 19 | Last share market price of the year /net profit /number of shares at year end (P / E ratio) |
2.98 | 6.39 | 8.85 | 16.46 | 226.47 |
| 20 | Share capital, thousand euros | 74,476 | 74,476 | 74,476 | 74,476 | 74,476 |
| 21 | Share capital-to-assets ratio | 0.56 | 0.52 | 0.51 | 0.50 | 0.50 |
| 22 | Return on equity (capital), per cent (net profit / capital and reserves) *100 |
8.9 | 7.9 | 6.8 | 3.1 | 0.2 |
Comparison of financial indicators of the Company of the 1 half of the year 2020 with the indicators of the 1 half of the years 2016–2019 is presented in Table 2.
| No | Indicator of the Company | 1 half 2016 |
1 half 2017 |
1 half 2018 |
1 half of 2019 |
1 half of 2020 |
|---|---|---|---|---|---|---|
| 1 | Revenue from sales, thousand euros | 36,189 | 35,321 | 38,222 | 34,443 | 25,251 |
| 1.1 | Including: Heat energy | 34,519 | 33,600 | 36,162 | 31,812 | 23,326 |
| 1.2 | Electric energy | 38 | 0 | 0 | 0 | 0 |
| 1.3 | Maintenance of indoor heating and hot water supply systems, heating substation facilities |
5 | 5 | 5 | 6 | 6 |
| 1.4 | Income from the maintenance of collectors |
113 | 125 | 125 | 125 | 124 |
| 1.5 | Hot water supply including cold water price |
1,374 | 1,430 | 1,728 | 1,713 | 1,581 |
| 1.6 | Income from maintenance of hot water meters |
140 | 161 | 202 | 210 | 214 |
| 2 | Profit, thousand euros | 7,017 | 6,177 | 5,537 | 2,335 | 77 |
| 3 | EBITDA (earnings before interest, taxes, depreciation and amortization), thousand euros |
10,520 | 9,723 | 9,203 | 5,907 | 3,776 |
| 4 | Profitability of core business, per cent (operating profit / sales and services) * 100 |
15.0 | 15.89 | 13.1 | 6.23 | -1.4 |
| 5 | Net profitability, per cent (net profit / sales and services) *100 |
19.4 | 17.5 | 14.5 | 6.8 | 0.3 |
| 6 | Assets, thousand euros | 133,034 | 141,012 | 143,131 | 146,927 | 148,949 |
| 7 | Equity, thousand euros | 87,631 | 89,155 | 91,222 | 91,364 | 89,853 |
| 8 | Return on equity (ROE), per cent (net profit / average equity) *100 |
4.0 | 7.2 | 6.38 | 2.69 | 0.09 |
| 9 | Return on assets (ROA), per cent (net profit / average assets) *100 |
5.2 | 4.5 | 4.0 | 1.7 | 0.1 |
| 10 | Asset turnover ratio (sales and services / assets) |
0.27 | 0.25 | 0.27 | 0.24 | 0.17 |
| 11 | Return on tangible assets, per cent (net profit/ average value of tangible assets) *100 |
2.8 | 5.1 | 4.6 | 1.9 | 0.1 |
| 12 | Debt ratio (liabilities /assets) | 0.34 | 0.37 | 0.36 | 0.38 | 0.40 |
| 13 | Debt-to-equity ratio (liabilities / equity) | 0.5 | 0.6 | 0.6 | 0.6 | 0.7 |
| 14 | General liquidity ratio (short-term assets / short-term liabilities) |
2.46 | 1.90 | 2.89 | 1.82 | 0.91 |
| 15 | Quick ratio ((short-term assets inventory) / short-term liabilities) |
2.39 | 1.85 | 2.67 | 1.69 | 0.77 |
| 16 | Cash ratio (cash in hand and at bank / short-term liabilities) |
1.56 | 1.27 | 2.14 | 1.28 | 0.40 |
| 17 | Net earnings per share (net profit / average weighted number of shares in issue) |
0.16 | 0.14 | 0.13 | 0.05 | 0.02 |
| 18 | Equity per share, euros | 2.05 | 2.08 | 2.13 | 2.13 | 2.10 |
| 19 | Last share market price of the year / net profit / number of shares at year-end (P / E ratio) |
3.05 | 6.37 | 8.81 | 18.33 | 555.87 |
| 20 | Share capital, thousand euros | 74,476 | 74,476 | 74,476 | 74,476 | 74,476 |
| No | Indicator of the Company | 1 half 2016 |
1 half 2017 |
1 half 2018 |
1 half of 2019 |
1 half of 2020 |
|---|---|---|---|---|---|---|
| 21 | Share capital-to-assets ratio | 0.56 | 0.53 | 0.52 | 0.51 | 0.50 |
| 22 | Return on equity (capital), per cent (net profit / capital and reserves) *100 |
8.7 | 7.9 | 6.8 | 2.8 | 0.09 |
The more detailed analysis of financial indicators of the Group and the Company is provided in notes to Consolidated and Company's financial statements for the 1 half of the year 2020.
Chart 5
The Company's performance can be affected by changes in sales turnovers caused by changed heat demand, which can be caused by consumer investments in the renovation of buildings, heat saving and rational consumption, average higher of lower outdoor temperature during the heating season, changes in fuel prices, heat purchase price from IHP.
Company's reconstructed heat production facilities changing fossil fuel to biofuel will make a serious competition with their costs of production to IHP, operating in Kaunas. With modernization of its own production facilities the Company reduced heat price for its consumers by more than 26 per cent during the last 5 years.
The dynamics of heat price of the Company in the 1 half of the years 2016–2020 is provided in Chart 6.
Chart 6
Constituents of Company's heat price structure of June of the years 2016–2020 are provided in Chart 7.
The prices of heat and hot water are calculated and approved in accordance with the Methodology for the determination of heat prices, approved by the resolution of NCC No. O3-96 of July 8, 2009. Constituents of a base heat price are determined for a period of 3-5 years. In the case of regulated pricing services (products), the mechanism of long-term prices applies to heat pricing, i.e. for the base period, the base heat price (price constituents) is determined, which is adjusted for the second and subsequent years by setting the recalculated heat price (price constituents).
Management Board of Kauno Energija, PLLC determined by its decision of October 24, 2018 No. 2018-26-2 heat price constituents for the first year of validity of basic heat price, which were agreed by National Energy Regulatory Council (NERC) decision No. O3E-390 of November 16, 2018. Constant heat price constituent, valid until November 30, 2018 was 1.95 ct/kWh (incl. profit), and a new constant constituent, valid from December 1, 2018 is 1.81 ct/kWh (incl. profit) (decrease of constant constituent was determined by the decrease in reserve capacity assurance expenditures from 0.26 ct/kWh to 0.15 ct/kWh). Details of constant heat price constituent are provided in Chart 8.
Chart 7
The Company recalculates values of heat price variable constituents and final heat prices every month, considering changes in prices of fuel and purchased heat. The additional constituent has been determined by the decision of the Management Board of the Company, to compensate the difference between actual price and prices of fuel and heat purchase included in heat price. This additional constituent reduces the price for consumers by 0.32 ct/kWh. Details of variable heat price constituent valid on June 2020 are provided in Chart 9.
Chart 9
In carrying out their activities, the Group and the Company seek to prudently use natural resources, install fewer polluting technologies, and follow the environmental legislation and apply preventive measures to minimize the negative impact on the environment.
The Group and the Company have organized the waste collection, sorting and disposal of them to waste managers, i.e. to licensed waste management businesses. In 2019, the Group and the Company disposed for recycling 41.5 tons of various waste (absorbents, filter materials, packages containing hazardous chemicals or that are contaminated with them, paper and carton, insulation materials containing asbestos, used tyres, bituminous mixes, batteries and accumulators, fluorescent lamps, concrete, bottom ash, iron and steel.
In accordance with the schedule agreed with the Environmental Protection Agency (EPA), the Group and the Company constantly monitor that the effluent discharges from stationary sources are within the permissible limits set out in the integrated pollution prevention and control permits.
The measurement laboratory of stationary air pollution sources of the Group and the Company, in possession with the permit issued by the EPA and following the schedule agreed with EPA, continuously monitors the emissions to the atmosphere from stationary sources to would not exceed the permissible limits established in integrated pollution prevention and control permits. Company's Šilkas, Ežerėlis, Girionys and Noreikiškės boiler-houses, and starting from 2015 – Inkaras boiler-house and Petrašiūnai power-plant use biofuel, thus reducing atmospheric pollution.
The amount of pollutants emitted into the atmosphere in 2015–2019 from the Company's stationary facilities of ambient air pollution presented in table 3 below.
| Period | Particulates, t | Nitrogen oxides, t |
Carbon monoxide, t |
Sulphur dioxide, t |
Hydrocarbons, t | Other pollutants, t |
|---|---|---|---|---|---|---|
| 2019 | 86.0888 | 253.4443 | 1090.2436 | 0.2746 | 1.1978 | 0.4313 |
| 2018 | 48.7984 | 283.0412 | 1082.9366 | 31.6210 | 1.1982 | 0.1509 |
| 2017 | 79.7242 | 285.6461 | 1236.7667 | 145.0571 | 1.1982 | 0.4297 |
| 2016 | 53.7542 | 265.0797 | 1155.3349 | 231.4719 | 4.2871 | 0.2818 |
| 2015 | 43.5783 | 203.6775 | 904.8513 | 193.3228 | 20.1586 | 0.2818 |
Table 3
Cyclones for smoke cleaning from particulates are installed in Šilkas, Ežerėlis, Girionys, Noreikiškės, Inkaras boiler-houses and Petrašiūnai power-plant. Their working efficiency is checked every year. The Company is involved in the greenhouse gas emissions trading system. This system includes emission allowances (EA) allocated to Petrašiūnai power-plant, Šilkas, Pergalė, Garliava, Jurbarkas boiler-houses and Noreikiškės boilerhouse with a cogeneration power-plant.
Main financial data of the Group and the Company are provided in the explanatory notes to the Consolidated and Company's Financial Statements od Kauno Energija, PLLC for the 1 half of the year 2020.
When preparing its consolidated financial statements, the Company combines the itemised financial statements of the Company and its subsidiaries, by summing up the items of assets, liabilities, equity, revenue and expenses. Afterwards, it eliminates the book value of the Company's investment in the subsidiary and Company's share of equity in the subsidiary; amounts on balance sheets, transactions, income and expenses inside the Group (for this purpose, it prepares a reconciled report of all transactions, income and expenses for the period); difference in depreciation of contribution in kind measured at market value as compared to its book value.
For composing of the consolidated financial statements of the Group, the financial statements of the Company and subsidiaries are composed for the same date.
It's controlled if the accounting policy of the company and its subsidiaries for accounting of similar transactions is the same. The subsidiaries' income and expenses are included into the consolidated financial statements as of the date of acquisition.
On July 30, 2020 the Management Board of the Company approved unaudited performance results, presented in concise interim Consolidated and Company's Financial Statements for the 1 half of the year 2020, prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
On August 4, 2020 the Extraordinary General Meeting of Shareholders was held, at which it was decided to approve the loan in amount of EUR 55,000,000 from European Investment Bank for the financing of investments of Kauno Energija, PLLC for 2020–2023.
Inasmuch investments allow continual business development and profitability, the aims of the Group's and the Company's investment program for the year 2020 is further increase in volumes of heat production and effectiveness, expansion of heat selling market, through increase of use of biofuel for heat production, development of heat transmission and distribution increasing safety and reliability, developing services of maintenance of engineering systems and further improvement of consumers services quality.
In compliance with the provisions of the plan for the facilities on the implementation of the National Renewable Energy Development Strategy, in order to implement the Company's key business objectives and the provisions of the National Energy Independence Strategy related to the assurance of technical requirements for reliability of heat facilities and heat supply networks, to guarantee the quality keeps apply to consumers, Kaunas city municipality decided to approve Company's investment plans with the decision No. T-235 "Regarding Investment Plans of Kauno Energija, PLLC for the Year 2020 and Their Financing" on May 26, 2020.
The main investment goals of the Company for the regulation period of the years 2017–2020 are as follows: use of renewable energy sources, increase in reliability of heat supply to consumers in Kaunas and Jurbarkas cities an Kaunas district, and anticipated reception of EU Structural support under the 4 priority "Promoting energy efficiency and production and use of renewable energy" of Operational Programme for the European Union Funds' Investments in 2014–2020.
In 2020 the implementation of Company's investment program will involve further modernization of boilerhouses owned by the Company automating the production process and installing condensational economizers; reconstruction of heat networks; replacement of heat meters. It's important to notice, that implementation of these measures will allow to reduce losses of heat transmission and to perform optimization of heat supply to the consumers and to ensure heat supplies reliability.
It is planned that in 2020 in comparison with 2019, the Group's sales turnover will be less due to the less price of heat. A quantity of heat sold to consumers will remain in the similar level as in 2019. The greatest impact on the Group's and the Company's income and expenses will be made by the changes in fuel and purchased heat prices, as the price of heat is recalculated every month under the requirements of the law. A significant influence on the price of purchased heat is provided by the procedures established by the NERC (for example, a description of the procedure and conditions for the purchase of heat from independent heat producers), the conditions of competition between the heat supplier and the IHP. The Group's profit in comparison with 2019 is planned to be less. The results planned may be adjusted by change in heat demand, i.e. consumption, which is mainly affected by the average outdoor air temperature, the amount of user investments in housing renovation, energy-saving and its rational use, decisions of NERC regarding issues of heat pricing, as well as changes in the economic situation in Lithuania.
It's indicated in EU Directive of renewable sources and in Lithuanian national legal acts, that a part of renewable sources in total end energy consumption must consist not less, than 23 per cent until the year 2020, and the part falling on heating – up to 40 per cent. Meanwhile in Kaunas this indicator exceeds 80 per cent already.
Company's representatives are constantly invited to work in committees of preparation of Energy Engineering studies programs of Kaunas University of Technology and in groups of external and self-evaluation. Working in these groups and committees Company's representatives analyse aims of programs and goals of studies, composition of training plans, appropriateness of staff, material basis, process and evaluation of studies, as well as program management. Performing external and self-evaluation, committees apply recommendations for improvement of program structures and implementation process, to satisfy the needs of employers and to meet the requirements of national and European legal acts in the field of higher education.
Company's representatives took part as every year in national conference "Heat energetics and technologies" organized by Kaunas University of Technology at the end of January.
The Company along with Lithuanian Energy Institute takes part in READY project ("Resource efficient cities implementing advanced smart city solutions") supported by European Commission. 23 companies from Denmark, Sweden, Austria, France and Lithuania take part in it. Project will be pursued until the year 2022 by applying the latest measures of effective energy consumption in Kaunas city.
Starting from 2018 the Company together with 9 more European companies and research institutions and with the Innovation and Network Program Institution (INEA), which manages infrastructure and research programs in the EU transport, energy and telecommunications sectors, takes part in the international research project "Flexible combined heat and power generation from renewable energy sources" (FLEXCHX). The essence of the project is to ensure biomass power-plants to work in a full load the whole year. The goal of the project is to create a flexible energy production process, which could be used in various Europe's energy production facilities in the future, using high effectiveness at the minimal expenditures.
On January 15, 2019 the European Commission has proposed EUR 1.66 million support for project No. 847056 "Residential Building Energy Renovations with On-Bill Financing" (Ren-on-Bill). The application for financing of the project was submitted under the Horizon 2020 program. The Company will participate in the project as a partner with 8 other companies from Lithuania, Italy, Germany, Belgium and Spain. The project will be coordinated by Creara Consultores SL (Spain). EUR 71.5 thousand of EU support is allocated for the Company. The aim of the Ren-on-Bill project is to increase investment in residential renovation by promoting the use of OBF (On-Bill Financing) utility schemes based on cooperation between energy suppliers and financial institutions.
Furthermore, the Company takes part in programmes "Green Light" and "Motor Challenge", supported by European Commission, the aim of whose is effective energy consumption in lighting and pumps operation systems.
The Company and Fortum Heat Lietuva, LLC entered into an agreement on the purchase and sale of the Palemonas heat economy in Kaunas, according to which Kauno Energija, PLLC purchased a boiler-house with heat supply networks and related equipment from Fortum Heat Lietuva, LLC and starting from February 1 carries out heat supply activities in this catchment. The Palemonas heat economy consists of an automated 2.4 MW gas burned water heating boiler house and 1.176 km of heat supply networks, with which heat is supplied to 13 residential buildings with 513 apartments.
The Company, which supplies district heating to Kaunas, responding to the changes of the warming climate, enters a new district cooling market, which is still poorly tested in Lithuania. District cooling is the production and supply of district cooling by converting heat energy into cool and using the existing district heating infrastructure. One of the latest technologies to produce cooling from heat is absorption heat pumps. During a rather sophisticated technological process in them, heat energy is converted into cool, which is supplied to the premises by other devices. One of such absorption heat pumps was also acquired by the Company. On April 8, 2020, this unit was delivered to the Inkaras boiler-house in Kaunas.
The Company does not hold the shares of its own. The Company's subsidiaries have not purchased any of the Company's shares. Neither the Company nor its subsidiaries purchased or sold own shares during the reporting period.
All relevant information on this issue is provided in Explanatory Notes to the Consolidated Financial Statements for the 1 half of the year 2020 of Kauno Energija, PLLC.
The authorised capital of Kauno Energija NT, LLC registered in the Register of Legal Entities on June 30, 2020 is 1,329,872 euros and it is divided into 45,921 ordinary registered shares with par value of 28.96 euros each.
Kauno Energija NT, LLC has no holdings directly or indirectly managed in other companies.
Activities of Kauno Energija NT, LC include the real estate development, management, leases, purchase and sale.
As at June 30, 2020 Kauno Energija NT, LLC had 4 employees.
Comparison of financial indicators of Kauno Energija NT, LLC of the 1 half of the year 2020 with the indicators of the 1 half of the years 2016–2019 is provided in Chart 10.
I half of 2016 I half of 2017 I half of 2018 I half of 2019 I half of 2020
Authorized capital of Petrašiūnų Katilinė, LLC registered at the Register of Legal Entities as at June 30, 2020 is EUR 231,696 and it is divided to 800 ordinary registered shares at par value of EUR 289.62 each.
Petrašiūnų katilinė, LLC holds no shares directly or indirectly managed in other companies.
Activities of Petrašiūnų Katilinė, LLC include production of heat.
Petrašiūnų Katilinė, LLC had 9 employees as at June 30, 2020.
Comparison of financial indicators of Petrašiūnų Katilinė, LLC of the 1 half of the year 2020 with the indicators of the 1 half of the years 2017–2019 is provided in Chart 11.
The authorised capital of the Company registered in the Register of Legal Entities of the Republic of Lithuania as at June 30, 2020 is EUR 74,475,728.82 (seventy-four million four hundred seventy-five thousand seven hundred twenty-eight euros and 82 cents).
Structure of authorized share capital of the Issuer by types of shares is specified in Table 4.
Table 4
| Type of shares | Number of shares, units |
Nominal value, euros |
Total nominal value, euros |
Municipal share in the authorised capital, per cent |
Share of private shareholders in the authorised capital, per cent |
|---|---|---|---|---|---|
| Ordinary nominal shares |
42,802,143 | 1.74 | 74,475,728.82 | 98.33 | 1.67 |
The authorised capital of Kauno Energija, PLLC was registered on May 18, 2015 by the decision of General Meeting of Shareholders held on April 28, 2015 and amounts to EUR 74,475,728.82 (seventy four million four hundred seventy five thousand seven hundred twenty eight euros and 82 cents) and it is divided to 42,802,143 (forty two million eight hundred and two thousand one hundred forty three) ordinary shares of par value of 1.74 euros each.
There are no limitations on the transfer of securities.
16.1. Main characteristics of shares released into free circulation of securities (as at June 30, 2020).
| Securities registration No | A01031430 |
|---|---|
| ISON code of securities | LT0000123010 |
| Number of shares | 20 031 977 ordinary nominal shares |
| Nominal value | EUR 1.74 |
| Total nominal value of shares | EUR 34,855,639.98 |
| ISON code of securities | LT0000128407 |
|---|---|
| Number of shares | 22,770,166 ordinary nominal shares |
| Nominal value | EUR 1.74 |
Total nominal value of shares EUR 39,620,088.84
History of trade in Company's securities in the years 2016–2020 is provided in Table 5.
| Indicator | 2016 | 2017 | 2018 | 2019 | June 30, 2020 |
|---|---|---|---|---|---|
| Opening price, euro | 0.459 | 0.592 | 1.18 | 1.01 | 0.98 |
| Highest price, euro | 0.600 | 1.180 | 1.24 | 1.1 | 1.03 |
| Lowest price, euro | 0.401 | 0.571 | 1 | 0.91 | 0.77 |
| Last price, euro | 0.560 | 1.180 | 1 | 0.92 | 0.83 |
| Circulation, units | 190,801 | 229,220 | 147,516 | 24,003 | 22,011 |
| Circulation, million euro | 0.10 | 0.19 | 0.16 | 0.02 | 0.02 |
| Capitalisation, million euro |
11.22 | 23.64 | 20.03 | 18.43 | 17.03 |
Table 5
Historical data on share prices (in euro) and turnovers as at June 30, 2016–2020 is provided in Chart 12.
Comparison of Company's share price with the index of own sector (utility services) and OMX Vilnius index is given in Chart 13.
The number of Company's shareholders as at June 30, 2020 was 427.
Information on Shareholders of the Issuer who owned as at June 30, 2020 more than 5 per cent of the authorised capital of the Company registered on May 18, 2015 (42,802,143 ordinary nominal shares), is provided in Table 6 and Chart 14.
| Full name of shareholder (company name, type, headquartered dress, code) |
Number of ordinary nominal shares owned by the shareholder, units |
Owned share in the authorised capital, per cent |
Share of votes carried by owned shares. per cent |
Share of votes owned by the shareholder together with acting entities, per cent |
|---|---|---|---|---|
| Kaunas City Municipality Laisvės al. 96, 44251 Kaunas Code 111106319 |
39,736,058 | 92.84 | 92.84 | - |
| Other shareholders | 3,066,085 | 7.16 | 7.16 | - |
| Total: | 42,802,143 | 100 | 100 | - |
Chart 13
Structure of shareholders as at June 30, 2020
17.1. The shareholders, who owned more than 5 per cent of the shares (20,031,977 ORS) issued for public trading (reg. No. A01031430, VP ISIN code – LT0000123010) as at June 30, 2020 are listed in Table 7.
| Name | Type of shares | Number of shares, units |
Total nominal value of shares, euros |
Percentage of shares from those released into the public circulation |
Share of the authorised capital (%) |
|---|---|---|---|---|---|
| Kaunas City Municipality Laisvės al. 96, 44251 Kaunas Code 111106319 |
Ordinary registered shares |
16,965,892 | 29,520,652 | 84.69 | 39.64 |
| Kaunas District Municipality Savanorių pr. 371, 49500 Kaunas, Code 111100622 |
Ordinary registered shares |
1,606,168 | 2,794,732 | 8.02 | 3.75 |
| Other shareholders | Ordinary registered shares |
1,459,917 | 2,540,256 | 7.29 | 3.41 |
| Total: | 20,031,977 | 34,855,640 | 100 | 46.80 |
17.2. The shareholders, who owned more than 5 per cent of the shares (22,770,166 ORS) issued for non-public trading (VP ISIN code – LT0000128407) as at 30 June 2019 are listed in Table 8.
Table 7
| Name | Type of shares | Number of shares, units |
Total nominal value of shares, Euro |
Percentage of shares from those released into the public circulation |
Share of the authorised capital (%) |
|---|---|---|---|---|---|
| Kaunas City Municipality Laisvės al. 96, 44251 Kaunas Code 111106319 |
Ordinary registered shares |
22,770,166 | 39,620,089 | 100 | 53.20 |
None of the shareholders of the Issuer holds any special rights of control. The rights of all shareholders are the same; they are specified in article 4 of the Law on Companies of the Republic of Lithuania. The number of shares carrying votes at the General Meeting of Shareholders of the Company is 42,802,143 units.
The Company has not been notified on the limitations of voting rights or any other mutual agreements of shareholders which may limit the transfer of securities and / or voting rights.
In 2016, the dividends from the profit of the year 2015 were allocated and paid to the shareholders of the Issuer. Dividend per share was 0.042 euro, in total – 1.798 million euro. The profit was allocated to the statutory reserve, other reserves, bonuses for the members of the Management Board and bonuses for employees. A total of 0.05 million euros was allocated for sponsorship.
In 2017, the dividends from the profit of the year 2016 were allocated and paid to the shareholders of the Issuer. Dividend per share was 0.106 euro, in total – 4.537 million euro. The profit was allocated to the statutory reserve, other reserves and bonuses for employees. A total of 0.1 million euros was allocated for sponsorship.
In 2018, the dividends from the profit of the year 2017 were allocated and paid to the shareholders of the Issuer. Dividend per share was 0.078 euro, in total – 3.339 million euro. The profit was allocated to the statutory reserve, other reserves and bonuses for employees. A total of 0.1 million euros was allocated for sponsorship.
In 2019, the dividends from the profit of the year 2018 were allocated and paid to the shareholders of the Issuer. Dividend per share was 0.025 euro, in total – 1.070 million euro. The profit was allocated to the statutory reserve, other reserves and bonuses for employees. A total of 0.05 million euros was allocated for sponsorship.
In 2020, no dividends were paid to the Issuer's shareholders. Retained earnings profit at the end of the reporting financial year, carried forward to the next financial year.
393 employees were employed in the Group as at June 30, 2020. Changes in the number of employees of the Group in 2016–2020 are provided in Table 9.
| Table 9 | |||||
|---|---|---|---|---|---|
| Actual number of employees | Group 31/12/2016 |
Group 31/12/2017 |
Group 31/12/2018 |
Group 31/12/2019 |
Group 30/06/2019 |
| Total: | 521 | 513 | 441 | 402 | 393 |
| management | 6 | 6 | 3 | 3 | 3 |
| specialists | 284 | 272 | 238 | 214 | 211 |
| workers | 231 | 235 | 200 | 185 | 179 |
Changes in number of employees of the Company in 2016–2020 are provided in Table 10.
Table 8
Table 10
| Actual number of employees | Company 31/12/2016 |
Company 31/12/2017 |
Company 31/12/2018 |
Company 31/12/2019 |
Company 30/06/2020 |
|---|---|---|---|---|---|
| Total: | 508 | 501 | 427 | 389 | 380 |
| management | 4 | 4 | 1 | 1 | 1 |
| specialists | 280 | 269 | 234 | 210 | 207 |
| workers | 224 | 228 | 192 | 178 | 172 |
Education of employees of the Group as at the end of the reporting period.
| No | Education | Group 31/12/2016 |
Group 31/12/2017 |
Group 31/12/2018 |
Group 31/12/2019 |
Group 30/06/2020 |
|---|---|---|---|---|---|---|
| 1 | Secondary incomplete | 5 | 5 | 3 | 3 | 1 |
| 2 | Secondary | 187 | 185 | 156 | 139 | 137 |
| 3 | College | 73 | 75 | 62 | 59 | 58 |
| 4 | Higher | 256 | 248 | 220 | 201 | 197 |
| Total: | 521 | 513 | 441 | 402 | 393 |
Education of employees of the Company as at the end of the reporting period.
Table 12
Table 11
| No | Education | Company 31/12/2016 |
Company 31/12/2017 |
Company 31/12/2018 |
Company 31/12/2020 |
Company 30/06/2020 |
|---|---|---|---|---|---|---|
| 1 | Secondary incomplete | 5 | 5 | 3 | 3 | 1 |
| 2 | Secondary | 183 | 181 | 151 | 135 | 134 |
| 3 | College | 71 | 73 | 60 | 57 | 55 |
| 4 | Higher | 249 | 242 | 213 | 194 | 190 |
| Total: | 508 | 501 | 427 | 389 | 380 |
Company's management pays a lot of attention on increase in work efficiency, working conditions improvement, supply with latest working tools, professional development, planning of internal activities and control implementation, also for improvement of consumer service quality. Executive and professional qualification levels suit their positions, and work experience and practical knowledge of subject of other employees makes them possible to work in their positions. Staff turnover in the Group and the Company is inconsiderable.
In order to increase work efficiency, the Company conducts an annual work performance evaluation of structural units managers, the main goal of which is to evaluate the employee's qualifications and abilities of functions performance assigned in job regulations, to properly evaluate employees' activities, provide feedback on the goals execution in order to increase employee loyalty, satisfaction with conducted work, encouraging them to improve. The result of this process is information allowing better coordination of the Company's activities and for encouraging employees to improve their working activities.
The Company actively cooperates with educational institutions and enables high school students to apply theoretical knowledge and gain practical skills. In the 1 half of the year 2020, 6 students completed an internship at the Company. When there is a need for new employees, the most active and best students are given the opportunity to get a job in the Company.
The salary of employees of the Issuer consists of the constant part of salary, variable part of salary, benefits and allocations paid according to the Labour Code of the Republic of Lithuania and other laws, Collective agreement of the Company, and bonuses. Bonuses are paid from net profit, if the General Meeting of Shareholders allocates part of the profit for the bonuses of the Company employees. From 1998 till 2014, the General Meeting of Shareholders has never allocated any part of the profit for the bonuses of the Issuer's employees. In 2020 the General Meeting of Shareholders did not allocate part of the profit to employee bonuses.
The Collective agreement provides the special rights and responsibilities of the Issuer's employees or part of them. The Collective agreement that became effective in the Company on January 1, 2019 covers special rights as follows:
For continuous employment within the Company employees are granted additional paid leave.
The record of service of employees who worked in Lithuanian energy system companies and who were redeployed to the Company according to the corporate employer agreement, i.e. when the transfer was carried out according to the Labour Code or the Law on Employment Contract, is considered uninterrupted and those employees are granted an additional paid leave for an uninterrupted record of service within the Company.
At the agreement of the employer and employee, the employee may be granted unpaid leave for family related issues and other important reasons.
Company's employees are entitled to additional paid leave.
The employer obligates:
To ensure the conditions of preventive health check and, if necessary, rehabilitation treatment of employees, to provide free health services at the Company's occupational health unit;
In case of death of an employee, the Company pays an allowance in the amount of two monthly average salaries of the last year of the Company gives free transport or covers transport costs. The allowance is granted to the burying person;
In case of death of a close relative of the employee (father (adoptive father), mother (adoptive mother), child (adoptee), or spouse), the employee is granted the allowance of the average salary of the previous year of the Company, given free transport or transport costs are covered;
In case of birth of one or more children, employees are granted 50 per cent of the of the average salary of the previous year of the Company for each child;
In case of wedding, employees are granted 50 per cent of the of the average salary of the previous year of the Company;
Employees who are growing up three or more children under the age of 16, widows (widowers) and unmarried persons who grow up one child or children (adoptees) alone, if they are studying at secondary schools until the age of 19, and while studying at higher schools or colleges full-time till the age of 21, or if they are caring for other family members with heavy or moderate disability level or lower than 55 per cent working ability level, or family members who have reached the retirement age, which according to the laws are established a major or moderate level of special needs, once a year are granted 50 per cent of the of the average salary of the previous year of the Company according to the date of request;
For the 40th , 50th and 60th anniversary, as proposed by the head of the division, for excellent performance of employees having the 15 and 20 years of continuous employment with the Company are granted a monetary gift of 25 per cent, and having over 20 years of continuous work experience – a monetary gift of 50 per cent of the average salary of the previous year of the Company;
In other cases, where the material support is needed (loss due to natural disasters or other reasons beyond the employee's control), employees are granted the allowance of up to 3 the average salaries of the previous year of the Company;
In case of a serious illness or accident of the employee, he is granted an allowance of up to 5 average salaries of the previous year of the Company. Illness allowance is granted once a year (in 12 months);
For the occasions of the Lithuanian Energy Day and jubilees of the Company deserving employees are granted a monetary gift of up to 150 euros.
The Statutes of the Issuer say that the General Meeting of Shareholders of the Company has the exceptional right to amend the Statutes other than the exceptions provided in the Law on Companies of the Republic of Lithuania. The resolution on the amendment of the Company's Statutes 2/3 qualified majority of votes of the members participating in the meeting of shareholders is needed.
The Statutes of the Company were amended on September 10, 2019 by the decision of the General Meeting of Shareholders. The new wording of the Statutes was registered on October 1, 2019 in the Register of Legal Entities of the Republic of Lithuania. It can be found on Company's website at www.kaunoenergija.lt.
According to the Statutes of the Company, the management bodies of the Company include the General Meeting of Shareholders, a collegial management body – the Supervisory Board, a collegial management body – the Management Board, and a sole management body – General Manager.
Decisions of the General Meeting of Shareholders made on the issues within the competence of the General Meeting of Shareholders provided for in the Statutes of the Company are binding to its shareholders, the Supervisory Board, the Management Board and the General Manager, and to other employees of the Company.
All persons who are the shareholders of the Company on the date of the General Meeting of Shareholders have the right to attend the Company's General Meeting of Shareholders personally or by proxy or be represented by persons with whom they had entered into the agreement on the transfer of the voting right. The record date of the meeting of the Company is the fifth working day before the General Meeting of Shareholders or the fifth working day before the repeat General Meeting of Shareholders. A person attending the General Meeting and entitled to vote shall provide a document which is a proof of his personal identity and sign the registration list of the Meeting of Shareholders. A person who is not a shareholder shall additionally provide a document attesting to his right to vote at the General Meeting of Shareholders.
3 (three) General Meetings of Shareholders were convoked in 2020. Company's General Manager and the Chief Finance Officer attended them. Issuers' shareholders can ask questions and can get answers or explanations from Company's managers and speakers.
The collegial management body – Supervisory Board is elected by the General Meeting of Shareholders according to the procedure specified in the Law on Companies of the Republic of Lithuania. The Supervisory Board consists of 7 (seven) members. The Supervisory Board is elected for a term of 4 (four) years. The Supervisory Board elects the chairman of the Supervisory Board from among its members. The General Meeting of shareholders may remove from office the entire Supervisory Board or its individual members before the expiry of the term of office of the Supervisory Board. Where individual members of the Supervisory Board are elected, they shall be elected only until the expiry of the term of office of the current Supervisory Board.
The Supervisory Board elects and dismisses the Management Board members and supervises the activities of the Board and the General manager of the Company; submits its comments and proposals to the General Meeting of Shareholders on the Company's operating strategy, set of annual financial statements, draft of profit / loss allocation and the annual report of the Company as well as the activities of the Board and the General manager of the Company; submits proposals to the Board and the General manager of the Company to revoke their decisions which are in conflict with laws and other legal acts, the statutes of the Company or decisions of the General Meeting of Shareholders; addresses other issues assigned to the scope of powers of
the Supervisory Board by decisions of the General Meeting of Shareholders regarding the supervision of the activities of the Company and its management bodies. The Supervisory Board shall not be entitled to assign or delegate the functions assigned to the scope of its powers by the Law on Companies of the Republic of Lithuania and the statutes of the Company to other organs of the Company.
The Supervisory Board, following the resolution No. 03-14 of January 24, 202017 of the Management Board of the Bank of the Republic of Lithuania "Regarding the Schedule of the Requirements for Audit Committees", approves the internal rules of procedure for forming the Audit Committee and electing the Audit Committee members.
The Supervisory Board of the Company approved on May 21, 2019 a new wording of the internal rules of procedure of the Audit Committee of the Company.
The Management Board is a collegial management body of the Company. The Management Board is comprised of 5 (five) members. The Management Board is elected for the period of 4 (four) years by the Supervisory Board. The Supervisory Board can remove from office the entire Management Board incorpore or its individual members before the expiry of their term. If individual members of the Management Board are elected, they shall serve only until the expiry of the term of office of the current Management Board. The Management Board elects the chairman of the management Board from among its members.
The General Manager is the manager of the Company. The manager of the Company is a sole person management body of the Company organising its activities. Authority and responsibilities of the administration members of the Company are established by the order of the General Manager.
| Full name | Position | Beginning of term | End of term* | |
|---|---|---|---|---|
| Mrs. Ramunė |
Independent member of Audit | May 21, 2019 |
February 26, 2020 |
|
| Bičkauskienė | Committee | |||
| Independent member of Audit | May 21, 2019 | April 26, 2023 | ||
| Mr. Mindaugas Šimkus |
Committee | |||
| Mr. Artūras Aladaitis |
Member of Audit Committee | December 6, 2019 |
April 26, 2023 |
The members of Audit Committee appointed by the decision No. 2019-4 of the Supervisory Board of May 21, 2019:
* The term of office of the Audit Committee coincides with the term of office of the Supervisory Board of the Company.
In carrying out its activities, the Audit Committee follows the internal rules of procedure of the Company's Audit Committee approved by decision No 2019-4 of May 21, 2019 of the meeting of the Supervisory Board of the Company. The Audit Committee performs its functions provided for in article 52 of the Law on Audit of the Republic of Lithuania. The Audit Committee performed the monitoring of the process of financial statements audit performed by independent auditor and had one session in the 1 half of the year 2020. Financial statements of the Company of the year 2019 were reviewed during the session.
Members of the Supervisory Board of the Company as at June 30, 2020:
| Full name | Position | Beginning of term | End of term |
|---|---|---|---|
| Mr. Antanas Etneris |
Chairman of the Supervisory Board |
April 26, 2019 | April 26, 2023 |
| Mrs. Rūta Šimkaitytė - Kudarauskienė |
Deputy chairman of the Supervisory Board |
April 2, 2020 | April 26, 2023 |
| Mr. Konstantinas Pesenka | Member of the Supervisory Board | April 26, 2019 | April 26, 2023 |
| Mr. Mindaugas Šimkus |
Member of the Supervisory Board | April 26, 2019 | April 26, 2023 |
| Mr. Saulius Lazauskas |
Member of the Supervisory Board | April 2, 2020 | April 26, 2023 |
| Mr. Justas Limanauskas |
Member of the Supervisory Board | April 2, 2020 | April 26, 2023 |
Company's Supervisory Board comprised of five independent members and of one member of Kaunas City Municipality administration, as he partially represents the controlling shareholder, i.e. Kaunas City Municipality, holding 92.84 per cent of the Company's voting shares.
1 session of the Supervisory Board was held during the 1 half of the year 2020. More than ½ of the members of the Supervisory Board attended the session.
Mr Antanas Etneris, director of Wisewood, LLC (code 302527538, Ringuvos str. 74, LT-45245 Kaunas), director of Mana Grupė, LLC (code 303991865, Kruonio str. 16, Kaunas), director of Airhotel, LLC (code 302598948, Oro Uosto str. 2, Karmėlava, LT-54460 Kaunas distr.), member of the Board of Stoties Turgus, LLC, member of the Board of Kauno Vandenys, LLC.
Holds no shares of the company. Hodls the shares of the companies Wisewood, LLC, Mana Ranga, LLC, Mana Grupė, LLC, Airhotel, LLC, Dramart, LLC, Ukraineičių 4, LLC, Vėjo Dukra, LLC, Plėtros Fondas, LLC, Aguonų Projektai, LLC, My Group, LLC.
Head of the Legal and Consulting Department of Kaunas City Municipality (company code 111106319, Laisvės av. 96, LT-44251 Kaunas); Director of Centrinis Knygynas, LLC (company code 133607044, Laisvės av. 81, LT-44297 Kaunas).
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
General Manager of Kauno Švara, LLC (company code 132616649, Statybininkų str. 3, LT-50124 Kaunas), Member of the Board of Kauno Vandenys, LLC, Member of the Board of Kaunas Region Waste Management Centre", PI.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Director of the budgetary institution Parkavimas Kaune (company code 134929849, Puodžių str. 24-1, LT-44295 Kaunas); director of the budgetary institutions "S. Dariaus and S. Girėno Aerodromas" (company code 135087311, Veiverių str. 132, LT-46337 Kaunas).
Holds no shares of the company. No interest in the capital of other Lithuanian companies.
Member of the Management Board of Windex Group, LLC (code 303522864, Draugystės str. 17-1, Kaunas), chairman of the Management Board of Kauno Vandenys, LLC. Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Head of economics of Vičiūnų Grupė, LLC (code 303211678, V. Krėvės av. 97, LT-50369 Kaunas), member of the Board of Kauno Švara, LLC, member of the Board of Kauno Vandenys, LLC. Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
A Mayor of Kaunas city (code 111106319, Laisvės av. 96, LT-44251 Kaunas), Member of the Kaunas City Municipality Council. Founder, leader and Chairman of the board of public election committee Vieningas Kaunas (United Kaunas), Chairman of the board of association Mentor Lietuva, President of association Žalgirio Fondas (Žalgiris Fund).
Holds no shares of the Company. Holds the shares of Vičiūnai Group of companies.
Resigned from the members of the Company's Supervisory Board on February 26, 2020.
A member of the Kaunas City Municipality Council, Chairman of Committee of Sustainable Development and Investments (code 111106319, Laisvės av. 96, LT-44251 Kaunas), Docent of Environmental Engineering Institute of Kaunas University of Technology, Head of Centre of Packaging Innovations and research of Kaunas University of Technology, member of the Committee on Circular Economy Policy Formation of the European Commission for the Urban Agenda for the EU; expert of Technical Committee TK 42 of Lithuanian Standards Board (LSB), member of the board of public election committee Vieningas Kaunas, member of council of National Cluster of Renewable Energy of Baltic Littoral.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Resigned from the members of the Company's Supervisory Board on February 26, 2020.
Administrative director of Vičiūnų Grupė, LLC (code 303211678, V. Krėvės av. 97, Kaunas); Director of MIR Projektai, LLC (code 302836883, Vėjo str. 59, Didvyrių vil., Kaunas distr.), member of the Kaunas City Municipality Council, chairwoman of committee of Economics and Finances (code 111106319, Laisvės av. 96, LT-44251 Kaunas).
Holds no shares of the Company. Holds the shares of the companies MIR Projektai, LLC, Apranga, PLLC, Šiaulių Bankas, PLLC, Vilkyškių Pieninė, PLLC.
Resigned from the members of the Company's Supervisory Board on February 26, 2020.
Deputy Mayor of Kaunas city (code 111106319, Laisvės av. 96, LT-44251 Kaunas), Member of the Board of public election committee Vieningas Kaunas (United Kaunas), chairman of the Committee of City Maintenance and Services (code 111106319, Laisvės av. 96, LT-44251 Kaunas).
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Resigned from the members of the Company's Supervisory Board on February 26, 2020.
Members of Company's Management Board as at June 30, 2020:
| Full name | Position | Beginning of term | End of term |
|---|---|---|---|
| Nerijus Mordas | Chairman of the Management Board | May 21, 2019 |
May 21, 2023 |
| Paulius Keras | Deputy chairman of the Management Board |
May 21, 2019 | May 21, 2023 |
| Algimantas Stasys Anužis | Member of the Management Board |
May 21, 2019 | May 21, 2023 |
| Karolis Šiugžda | Member of the Management Board | May 21, 2019 | May 21, 2023 |
| Karolis Dekeris | Member of the Management Board | May 21, 2019 | May 21, 2023 |
16 sessions of Company's Management Board were held in the 1 half of the year 2020. More than 2/3 members of the Management Board attended all the sessions.
Mr. Nerijus Mordas, a chief finance officer of Vičiūnų Grupė, LLC (code 303211678, V. Krėvės av. 97, LT-50369 Kaunas). Member of Company's Management Board from June 1, 2015.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Mr. Nerijus Mordas charged EUR 9.46 thousand of remuneration under agreement of activity of member of the Management Board. No bonuses estimated, nor any assets were transferred or guarantees issued during the reporting period.
Mr. Paulius Keras, Deputy Director of Kaunas city municipality (code 111106319, Laisvės av. 96, LT-44251 Kaunas). Member of the Management Board of the Company from May 21, 2019.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Mr. Paulius Keras charged EUR 5.68 thousand of remuneration under agreement of activity of member of the Management Board. No bonuses estimated, nor any assets
were transferred or guarantees issued during the reporting period.
Mr. Algimantas Stasys Anužis, member of the Council of Kaunas Chamber of Commerce, Industry and Crafts, president of Lithuanian Veterans Basketball League. Member of Company's Management Board from June 1, 2015.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Mr. Algimantas Stasys Anužis charged EUR 5.68 thousand of remuneration under agreement of activity of member of the Management Board. No bonuses estimated, nor any assets were transferred or guarantees issued during the reporting period.
Mr. Karolis Šiugžda, lawyer of Vičiūnų Grupė, LLC (code 303211678, V. Krėvės av. 97, LT-50369 Kaunas), lawyer of Groward Group, LLC (code 302764932, V. Krėvės av. 97, LT-50369 Kaunas).
Member of Company's Management Board from May 21, 2019.
Holds no shares of the Company. No interest in the capital of other Lithuanian companies.
Mr. Karolis Šiugžda charged EUR 5.68 thousand of remuneration under agreement of activity of member of the Management Board. No bonuses estimated, nor any assets were
transferred or guarantees issued during the reporting period.
Mr. Karolis Dekeris, Marketing Director of Kauno Autobusai, LLC (code 133154754, Raudondvario rd. 105, LT-47185 Kaunas). Member of Company's Management Board from May 21, 2019. Holds no shares of the Company. No interest in the capital of other Lithuanian companies. Mr. Karolis Šiugžda charged EUR 5.68 thousand of remuneration under agreement of activity of member of the Management Board. No bonuses estimated, nor any assets were transferred or guarantees issued during the reporting period.
General Manager of the Company since March 30, 2020. Education - higher university, Vilnius University in 2003, Bachelor of Political Science, Vilnius University in 2005, Master of Political Science, Creighton University, USA 2005, Master of Political Science. Workplaces during the last 10 years and positions: Head of the Sustainable Energy Development Division of Energetikos Agentūra, PI (June 2010 – December 2012), Adviser to the Prime Minister of the Republic of Lithuania on Energy (December 2012 – December 2016), Member of the Supervisory Board of Lietuvos Energija, LLC (July 2013 – July 2017), Member of the Nomination and Remuneration Committee of the Supervisory Board of Lietuvos Energija, LLC (July 2013 – July 2017), Member of the Risk Management Supervisory Committee of the Supervisory Board of Lietuvos Energija, LLC (September 2013 – July 2017), Member of the Support Fund Council of Lietuvos Energija, LLC (September 2014 – September 2017), Adviser to the Prime Minister of the Republic of Lithuania on Energy and the Environment (January 2017 – March 2018), Adviser to the Mayor of Kaunas city on Energy (June 2018 – March 2020).
Holds no shares of the Company. No interest in the capital of other companies.
Company's chief accountant since August 1, 2019. Education – higher university, Kaunas University of Technology, Faculty of Economics and Management – Bachelor of Economics. Workplaces during the last 10 years and positions: Company's Senior Accountant (since August 2009), Deputy Chief Accountant of the Company (since May 2014).
Company's General Manager and the Chief Accountant charged 36.8 thousand euros of remuneration, and the average amount per member is 18.4 thousand euros during the 1 half of the year 2020. No other assets had been transferred; no guarantees granted.
There are no significant agreements that would come into force, change or termination in case of change in controls of Issuer (their impact as well, except cases when due to the character of agreements the disclosure of them would make a significant harm).
There are no agreements of the Issuer or its managerial body members or employees (which provide for compensation in case of their resignation or termination of employment on no grounds or in case their employment is terminated due to changes in controls of the Issuer).
There were no larger individual transactions. More detailed information is provided in the Explanatory Notes to financial statements.
There are no harmful transactions concluded on behalf of the Issuer during the reporting period (not complying with the Company's objectives, normal market conditions, detrimental to the interests of shareholders and other interest groups etc.) which were or are likely to have an adverse effect on the Issuer's activities and (or) performance in the future, as well as information on transactions entered into in a conflict of interest between the Issuer's management, controlling shareholders or other related parties' obligations to the Issuer and their private interests and (or) other duties.
Information on compliance with the corporate governance code is provided in Annex 1 to the Annual report of the year 2019. Annual reports on the Company's corporate social initiatives and policies are provided in Annex 2 to the Annual report of the year 2019 named Kauno Energija, PLLC Report on Social Responsibility and on the Company's website.
In performing its obligations under the applicable legislation regulating the securities market, the Issuer has announced the following information starting from January 1, 2020 over the GlobeNewswire news distribution service, in which notices are disseminated within the European Union. This information was also posted on the website of the Issuer. All the information is available on website of Nasdaq Vilnius
| (http://www.nasdaqbaltic.com/market/?lang=lt) and Issuer's website (http://www.kaunoenergija.lt). |
|---|
| --------------------------------------------------------------------------------------------------- |
| Title | Announcement category |
Language | Time |
|---|---|---|---|
| Resolutions of the Extraordinary General Meeting of Shareholders of PLLC Kauno Energija |
General meeting of shareholders |
EN, LT | 04/08/2020 16:00 |
| Business activity results of the 1 half of the year 2020 | Notification on material event |
EN, LT | 30/07/2020 16:00 |
| Convocation of the Extraordinary General Meeting of Shareholders of PLLC Kauno Energija |
General meeting of shareholders |
EN, LT | 10/07/2020 16:00 |
| Activity results of the 1 quarter of the year 2020 | Interim information |
EN, LT | 04/05/2020 08:25 |
| Resolutions of the General Meeting of Shareholders of PLLC Kauno Energija |
General meeting of shareholders |
EN, LT | 30/04/2020 14:41 |
| Audited annual information of PLLC Kauno Energija for the year 2019 |
Annual information |
EN, LT | 30/04/2020 14:25 |
| Convocation of General Meeting of Shareholders of PLLC Kauno Energija, agenda and the resolution projects |
General meeting of shareholders |
EN, LT | 02/04/2020 17:29 |
| Resolutions of the Extraordinary General Meeting of Shareholders of PLLC Kauno Energija |
General meeting of shareholders |
EN, LT | 02/04/2020 13:21 |
| Information on The Election of The General Manager of The Public Limited Liability Company Kauno Energija |
Notification on material event |
EN, LT | 27/03/2020 14:15 |
| Convocation of the Extraordinary General Meeting of Shareholders of PLLC Kauno Energija |
General meeting of shareholders |
EN, LT | 10/03/2020 16:00 |
| Information on resignation of the members of Supervisory Board of AB Kauno Energija |
Notification on material event |
EN, LT | 14/02/2020 16:00 |
| Title | Announcement category |
Language | Time |
|---|---|---|---|
| Activity results of 12 months of the year 2019 | Interim | EN, LT | 31/01/2020 |
| information | 07:45 | ||
| AB Kauno Energija has signed an agreement on the | Notification on | 13/01/2020 | |
| purchase of Palemonas heat economy | material event | EN, LT | 16:00 |
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