KN Energies AB

Earnings Release • Feb 7, 2017

Disclosure 348821

Klaipedos Nafta - Notification on material event

AB Klaipėdos Nafta preliminary transhipment and revenue results for the January 2017

During January 2017 AB Klaipėdos Nafta (hereinafter – “the Company”) reloaded 625 thousand tons of petroleum products into its storage tanks of Klaipeda oil terminal and Subacius oil terminal (SOT), i.e. less by 21.1 percent compared to January 2016, when 792 thousand tons were reloaded. The transhipment decrease is related with the lower volume of petroleum products delivered from Belorussia refineries. In the Liquefied Natural Gas (LNG) Terminal of the Company 619 thousand MWh of the natural gas were re-gasified and supplied to the natural gas transmission system during January 2016, i.e. less by 42.2 percent compared to January 2016, when 1.071 thousand MWh of the natural gas were re-gasified. The volume decreased because terminal users ordered lower capacities. The preliminary sales revenues for January 2017 of AB Klaipėdos Nafta oil terminal and SOT comprise EUR 2.8 million and are less by 31.7 percent compared to the same period of 2016 (EUR 4.1 million). The preliminary sales revenues of the Company’s LNG Terminal for January 2017 comprise EUR 5.8 million (January 2016 – EUR 6.1 million), which consist of the one twelfth of the liquefaction activity revenues for the year 2017 approved by the National Control Commission for Energy Control and Prices. Petroleum products transhipment and LNG re-gasification January ---------------------------------------------------------------------- 2017 2016 Change, % ---------------------------------------------------------------------- Petroleum products transhipment, thousand tons 625 792 -21.1% ---------------------------------------------------------------------- LNG re-gasification, thousand MWh 619 1,071 -42.2% ---------------------------------------------------------------------- Preliminary revenues of the Company, EUR million January ----------------------------------------------------- 2017 2016 Change, % ----------------------------------------------------- Klaipeda oil terminal activity 2.6 3.9 -33.3% ----------------------------------------------------- Subacius fuel base activity 0.2 0.2 0.0% ----------------------------------------------------- LNG terminal activity 5.8 6.1 -4.9% ----------------------------------------------------- Total: 8.6 10.2 -15.7% ----------------------------------------------------- Marius Pulkauninkas, Acting General Manager, tel. 8 46 391763