Earnings Release • Nov 30, 2015
Earnings Release
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| Company name | SC Klaipedos nafta |
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|---|---|---|---|
| Company code | 110648893 | ||
| Authorized share capital | EUR 110,231,170 | ||
| Registered address | Buriu street 19, P.O. Box 81, 91003 Klaipeda-C, Lithuania |
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| Telephone | +370 46 391772 | ||
| Fax | +370 46 311399 | ||
| [email protected] | |||
| Webside | www.oil.lt, www.sgd.lt | ||
| Legal – organisational form |
Stock company | ||
| Date and place of registration | 27 September 1994, State Enterprise Centre of Registers |
The mission of the Company is to be a reliable import and export terminal of oil products and LNG for Lithuania and neighbor regions, to enable the region's oil refineries to export on a continuous basis their production by tankers through the Company's terminal to the Western European and further markets also to ensure alternative gas supply for the users in Lithuania and other neighbor countries.
The vision of the Company is to be a financially sustainable terminal for transhipment of oil products and LNG, invest in initiatives that will increase economic returns for the investors.
To increase the effectiveness of the Company, Improvement of the internal processes, Assurance of the safety requirements and environmental protection, To diversify activity of the Company, To become the main centre of oil and gas in
The authorized capital is divided into 380,606,184 ordinary shares with a nominal value of 0.29 EUR.
Main shareholder is The Republic of Lithuania, represented by the Ministry of Energy of the Republic of Lithuania, holding 72.32 % of shares (275,241,290 unit).
On the 10 July 2015, the Connecting Europe Facility (CEF, part of the EU financing program) Coordination Committee approved the financial support of preliminary EUR 6 million for the construction of the Company LNG onshore reloading station. The support shall be dedicated for the joint project of Helsingborg port and Klaipedos nafta (HEKLA) as both parties together submitted investment application through the Baltic Port Organization which actively encourage and support the LNG activities development in the Baltic region.
The foreseen start of the Company's LNG reloading station is the beginning of 2017.
On 5 August 2015, the Board of the Company consented that the Company takes necessary preparatory actions related to the possible decision to redeem the floating LNG storage and regasification unit for the purpose of decreasing annual LNG terminal exploitation costs.
With regard to that, the Board of the Company decided to initiate public procurement procedures for the purchase of financial services (credit) amounting up to EUR 300 mln. On 6 August 2015 the Company announced the Draft Technical Specification as well as the Draft Term-sheet of the Procurement Contract.
On 25 August 2015, the extraordinary General Meeting of Shareholders of the Company approved:
On 14 September 2015, the Supervisory Council of the Company adopted the decision to elect Kasparas Žebrauskas as the new member of the Company's Audit Committee until the term of office of the acting Audit Committee of the Company.
On 20 November 2015, the Board of the Company made a decision to perform activities of operating a LNG bunkering carrier and to establish UAB SGD logistika, a wholly owned subsidiary of the Company, for performance of such activities. The authorised share capital of UAB SGD logistika is EUR 200.0 thousand. Mantas Bartuška is the head of the subsidiary since its establishment.
LNG transportation services will be offered to clients in the Baltic Sea, also to clients of the LNG distribution station under construction in Klaipėda. It is planned that UAB SGD logistika together with its partner Bomin Linde LNG GmbH & Co. KG will establish a joint venture in Germany and will order construction of an LNG bunkering carrier. The Company with its said partner is going to provide LNG bunkering services in the Klaipėda State Seaport, in the Baltic Sea and in the North Sea.
The Board of the Company has also decided that the Company will issue guarantees (i) regarding performance of UAB SGD logistika obligations under the joint venture agreement with Bomin Linde LNG GmbH & Co. KG, also (ii) regarding payment of a part of the rent of the carrier.
On 24 November 2015, UAB SGD logistika, which is a wholly owned subsidiary of the Company, signed a joint venture agreement with partner Bomin Linde LNG GmbH & Co. KG on joint performance of the activities of operating the LNG bunkering carrier.
Following the signed agreement, UAB SGD logistika together with Bomin Linde LNG GmbH & Co. KG will establish a joint venture in Germany, in which UAB SGD logistika will hold 20% of the authorised capital and Bomin Linde LNG GmbH & Co. KG 80% of the authorised capital. This entity will order construction of an LNG bunkering carrier. The LNG bunkering carrier will provide LNG fuel to clients of Bomin Linde LNG GmbH & Co. KG both at sea and in the Klaipėda port, will offer safe and flexible transportation of LNG from the Klaipėda LNG terminal to the LNG distribution station in the Klaipėda port, will transport LNG to terminals in the North Sea and the Baltic Sea.
The agreement says that the Company will issue guarantees (i) regarding performance of UAB SGD logistika obligations under the joint venture agreement, also (ii) regarding payment of a part of the rent for the carrier. According to the estimates of the Company, the possible total liability of AB Klaipėdos Nafta according to such guarantees should not exceed the amount of USD 14.0 million.
Two four-track railway trestles provide a possibility to discharge or load 124 tank-cars
450 cub. m thousand total volume (plus in Subacius FS 340 cub. m thousand )
Waste water collected and treated annually up to 400 cub. m thousand (160 m3/h)
Depth: 14 m Harbour entrance depth: 14.5 m Length: 270 each Tanker batch: up to 100,000 t with 12.5 m allowable
A service to import gasoline and diesel by tankers for the Lithuanian market needs
LNG terminal: the first LNG terminal in the Baltic states, which comprise of the LNG floating storage and regasification unit – FSRU (170,000 thousand m3 ), jetty (450 m length), pipeline (18 km) and gas metering station. LNG to the terminal are delivered by the vessels - LNG carriers.
Results for the 9 months period of 2015 8
294 m
45 m
Storage capacity 170,000 m3
Regas capacity 11 mln.m 3/d
Import and other transhipment
Transit (Belorussian and Russian refineries petroleum products)
Export (AB "Orlen Lietuva")
The petroleum products transhipment volume has increased by 22.9 % (from 3,834 thousand tons in the 9 months of 2014 to 4,711 thousand tons in 2015). The main reasons:
1)The Company's managers include: General Manager, Deputy Manager, Heads of Departments and their deputies, Heads of Divisions.
| 9M 2014 |
Pokytis | ||||
|---|---|---|---|---|---|
| 9M 2015 |
+/- | % | |||
| Sales revenue | thousand EUR | 78,887 | 24,185 | 54,702 | 226.2% |
| Gross profit | thousand EUR | 18,879 | 8,814 | 10,065 | 114.2% |
| EBITDA | thousand EUR | 25,352 | 11,406 | 13,946 | 122.3% |
| EBIT | thousand EUR | 15,834 | 5,895 | 9,939 | 168.6% |
| EBITDA margin | % | 32.1% | 47.2% | -15.0% | -31.9% |
| EBIT margin | % | 20.1% | 24.4% | -4.3% | -17.7% |
| Financial and investment activities result | thousand EUR | -517 | 203 | -720 | -354.7% |
| Profit before taxation | thousand EUR | 15,317 | 6,098 | 9,219 | 151.2% |
| Net profit | thousand EUR | 13,095 | 5,221 | 7,874 | 150.8% |
| Net profit margin | % | 16.6% | 21.6% | -5.0% | -23.1% |
| Transhipment of oil products by type: | thousand tons | 4,711 | 3,834 | 877 | 22.9% |
| - HFO - heavy oil products |
thousand tons | 2,262 | 2,279 | -17 | -0.7% |
| - LFO - light oil products |
thousand tons | 2,449 | 1,555 | 894 | 57.5% |
| Average number of employees in categories |
369 | 375 | -6 | -1.6% | |
| Managers 1) | 35 | 33 | 2 | 6.1% | |
| Specialists | 137 | 129 | 8 | 6.2% | |
| Workers | 197 | 213 | -16 | -7.5% | |
| Average monthly salary (gross) | EUR/month | 1,315 | 1,240 | 75 | 6.0% |
| Managers 1) | EUR/month | 3,427 | 3,408 | 19 | 0.6% |
| Specialists | EUR/month | 1,611 | 1,589 | 22 | 1.4% |
| Workers | EUR/month | 1,106 | 1,028 | 78 | 7.6% |
SC Klaipedos nafta sales revenues for the 9 months of 2015 has risen almost 3.3 times comparing to the 9 months of 2014 and comprised EUR 78.9 million.
The activity of the LNG terminal which commenced in the end the year 2014 is the main reason for the increase in Company's revenues. Total recognized revenues from the LNG terminal operations for the 9 months of 2015 comprise EUR 48.6 million.
The revenues of the oil terminal in relation with the increased transhipment volume also has increased – by 25.3% or by EUR 5.8 million.
The net profit of the Company for the 9 months period of 2015 has increased 2.5 times to EUR 13.1 million (for 9M 2014 – EUR 5.2 million). EBITDA for the 9 months comprise 25.4 EUR million and is higher almost 2.2 times comparing to the 9 months of 2014.
The profitability of the Company for the 9M 2015 has significantly increased due to the two main reasons:
Total investments into the noncurrent assets during the 9 months of 2015 comprise EUR 6.1 million. The major part of investments were allocated to the finalizing works of the construction of the LNG terminal infrastructure.
The Company invests into construction of an on-shore small-scale LNG reloading station in the port of Klaipeda. That will offer LNG bunkering services, LNG loading into trucks services and possibly other in order to meet the increasing demand for LNG in the Baltic States and Poland. With this investment the Company aims to become a center of the LNG distribution in the Baltics region. The project shall be partially financed by the EU funds. The Company together with French company Sofregas in March 2015 have finished the LNG reloading station Front-end Engineering Design (FEED) preparation and environment impact assessment. On the 22 of July the tender for reloading station construction has been announced. Expanding the infrastructure of the LNG all legal, environmental and other regulatory requirements are followed step by step very responsibly and all the required procedures are made. At the same time the negotiations are in progress with the potential clients/users of the LNG reloading station.
Bomin Linde LNG, Germany based LNG provider of LNG as marine fuel, intends to become the user of the Klaipeda LNG terminal and to book regulated LNG reloading capacities in order to use the facility as the regional break-bulking hub for the Baltic Sea. As mentioned before, UAB SGD logistika, subsidiary of the Company, signed a joint venture agreement with partner Bomin Linde LNG GmbH & Co. KG on joint performance of the activities of operating the LNG bunkering carrier.
In the extraordinary shareholders meeting held on 25th of August 2015 the decisions regarding
new investments approval were adopted:
3 auto loading stations are foreseen that could serve 3 LNG auto carriers at the same time and perform bunkering operation for the one ship.
systems are in place.
• During the Transport Week, one of the most important transport events in Central and Eastern Europe, took place on March 17-19th 2015 in Gdańsk, Poland, the Company was awarded the Baltic Trendsetters Club Certificate for developing the floating LNG terminal
• On the 22th of the January 2015 in the annual Baltic Market Awards (BMA), organized by the Nasdaq, Klaipėdos nafta became the winner in the category "The Most Visible Improvement over the Year" and was invited to ring the Opening Bell at Nasdaq Market
th of November 2015 Klaipedos nafta received a sign of the Lithuanian Police Commissioner General for the active activity in prevention of the crimes and cooperation
th of December,
DYNAMICS OF THE SHARE PRICE AT NASDAQ OMX VILNIUS DURING JANURY-SEPTEMBER MONTHS OF 2015 Since 2003 the shares of the Company are listed on NASDAQ OMX Vilnius stock exchange: ISIN code – LT0000111650 Abbreviation – KNF1L Share emission (pcs.) – 380,606,184 Turnover in Vilnius stock exchange during January - September of 2015 was EUR 1.6 million. As of 30 September 2015 the Company's market capitalization was EUR 140.8 million (on 31 th of December, 2014 – EUR 118.4 million). Highest share price Lowest share price Share price at the end of period Average share price Turnover, unit Turnover, EUR EUR 0.415 0.318 0.370 0.376 4,172,913 1,562,299
| Highest share price Lowest share price | Share price at the end | |
|---|---|---|
Turnover, EUR thousand KNF1L Share price, EUR NASDAQ OMX Vilnius index, EUR thousand
Results for the 9 months period of 2015
30 April 2015 the General Meeting of Shareholders of the Company appointed Audit firm –"Ernst & Young Baltic" UAB to audit financial statements of the years 2015-2016.
The Supervisory Board comprise of 3 (three) members.
The Board comprise of 4 (four) members.
The Audit Committee comprise of 3 (three) members.
The Supervisory Board by the decision taken on 26 th of January, 2015, approved the resignation of an independent member of the Audit Committee, as well as the Chairman of the Audit committee - Mr. Simonas Rimašauskas as from 31 rd of January, 2015, due to the other business position held. On 14 th September 2015, the Supervisory Council of the Company adopted the decision to elect Kasparas Žebrauskas as the new member of the Company's Audit Committee until the term of office of the acting Audit Committee of the Company.
Independent Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 24 October 2011. The Supervisory renewed the mandate on 29 April 2014 for 4 years or until the time, when the new Board is elected ant starts acting.
Mindaugas Jusius Independent Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 24 October 2011. The Supervisory renewed the mandate on 29 April 2014 for 4 years or until the time, when the new Board is elected ant starts acting.
Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 25 August 2014 until the term of office of the acting Board of Company.
Member of the Board of the Company, General Manager. Elected as the Board member by the Supervisory Board on 25 September 2014 until the term of office of the acting Board of Company.
There is no permanent Chairman of the Board elected, therefore, the Chairman of the Board is elected from the Board members every meeting by ad hoc principle.
Mantas Bartuška General Manager
Gediminas Vitkauskas Director of the Oil terminal department
Osvaldas Sabaliauskas Deputy General Manager of the Company
Tadas Matulionis Director of the LNG terminal department (since the 17 February 2015)
Marius Pulkauninkas Director of Finance and Administration Department
Darius Šilenskis Director of Oil Commerce department (since 28 September 2015)
Genadijus Andrejevas Director of Technical Department (since 1 October 2015)
Stock company Klaipedos nafta
Company code 1106488893
VAT payer code LT06488917
Buriu street 19, P.O. Box 81, 91003 Klaipeda-C, Republic of Lithuania
Tel. +370 46 391772
Fax +370 46 311399
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