KN Energies AB

Business and Financial Review • Mar 7, 2018

Disclosure 359282

Klaipedos Nafta - Notification on material event

AB Klaipėdos Nafta preliminary activity and revenue results for the February 2018

In February 2018 AB Klaipėdos nafta (hereinafter – the Company) has reloaded 664 thousand tons of petroleum products in Klaipėda and Subačius oil terminals (increase by 18.4 per cent compared to February 2017, when 561 thousand tons were reloaded).

During the first two months of 2018 the Company in total reloaded 1,440 thousand tons of petroleum products into its storage tanks or more by 21.5 per cent compared to the same period of 2017 when 1,185 thousand tons were reloaded.

In February 2018 the Company’s Liquefied Natural Gas (LNG) terminal has re-gasified and supplied to the natural gas transmission system 328 thousand MWh of natural gas, while in February 2017 – 105 thousand MWh. During the first two months of 2018 the Company in total re-gasified and reloaded 591 thousand MWh of the natural gas (during the same period of 2017 – 890 thousand MWh). The LNG terminal activity level in 2018 is lower in relation with lower capacities ordered by the terminal users.

The preliminary sales revenue of the Company’s oil terminals’ for February 2018 amount to EUR 3.6 million and are higher by 38.5 per cent compared to the same period of 2017 (EUR 2.6 million). The preliminary sales revenue for January – February 2018 of the Company’s oil terminals comprise EUR 7.8 million and are higher by 44.4 per cent compared to the same period of 2017 (EUR 5.4 million).

The preliminary sales revenue of the Company’s LNG Terminal for February 2018 comprise to EUR 5.3 million (February 2017 – EUR 5.4 million). Revenue consists of the re-gasification tariff fixed part (for booked annual capacities) and variable part for amount of regasified LNG as well as and reloading tariffs. The preliminary revenue of the LNG terminal for the first two months of 2018 comprise EUR 12.0 million and are lower by 8.4 per cent compared to the same period of 2017 (EUR 13.1 million).

In the Company’s announcement regarding preliminary transhipment and revenue results for the January 2018 the preliminary revenue of LNG terminal indicated EUR 5.3 million. Although gas consumption capacities for 2017 year were recalculated, subsequently the LNG funds administrator has recalculated and adjusted the re-gasification tariff fixed part for January 2018, total EUR 6.7 million, which is higher by EUR 1.4 million comparing to the amount indicated in the announcement regarding the revenue for January 2018 released by the Company on 7 February 2018.

Total preliminary sales revenue of the Company in first two months of 2018 amount to EUR 19.8 million (during the same period of 2017 - EUR 18.5 million, i.e. more by 7.0 per cent).

Petroleum products transhipment and LNG re-gasification and reloading:

	February	January - February
	2018	2017	Change, %	2018	2017	Change, %
Petroleum products reloaded, thousand tons	664	561	18.4%	1,440	1,185	21.5%
LNG re-gasification and reloading, thousand MWh	328	105	212.4%	591	890	-33.6%

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

	January	February
Petroleum products reloaded, thousand tons	776	664
LNG re-gasification and reloading, thousand MWh	263	328

Preliminary revenue of the Company, EUR million:

	February	January - February
	2018	2017	Change, %	2018	2017	Change, %
Oil terminals’ activity	3.6	2.6	38.5%	7.8	5.4	44.4%
LNG terminal activity	5.3	5.4	-1.9%	12.0	13.1	-8.4%
Total:	8.9	8.0	11.3%	19.8	18.5	7.0%

Marius Pulkauninkas, Chief Financial Officer, +370 52 502 879