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Latvijas Gaze
Annual / Quarterly Financial Statement • Feb 27, 2014
2233_rns_2014-02-27_f7fac04c-502e-4daa-8ea3-734f40f1352e.pdf
Annual / Quarterly Financial Statement
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"Latvijas Gāze" Joint Stock Company
Unaudited Financial Report of 12 months of 2013
Prepared in accordance with the International Financial Reporting Standards
Riga, 2014
| Information on the Company 3 | |
|---|---|
| Report of the Board of Directors 5 | |
| Statement of Director's responsibility12 | |
| Balance sheet13 | |
| Income statement14 | |
| Statement of comprehensive income14 | |
| Statement of cash flows15 | |
| Statement of changes in equity16 | |
| Notes to the financial statements17 |
Information on the Company
| Name of the Company | JSC Latvijas Gāze |
|---|---|
| Legal status of the Company | Joint Stock Company |
| Registration number, venue and date |
000300064 Riga, March 25, 1991 |
| Reregistered in the Commercial Register December 20, 2004 with common registration No 40003000642 |
|
| Address | Vagonu Street 20 Riga, LV – 1009 Latvia |
| Major shareholders | E.ON Ruhrgas International GmbH (47.2 %) Gazprom OJSC (34.0 %) ITERA Latvija LLC (16.0 %) |
| Reporting period | January 1 – December 31, 2013 |
Board members (term of office of the Board – August 16, 2012 to August 16, 2015, for Mario Nullmeier term is January 1, 2014 to December 31, 2016) - names, surnames, posts, recent professional experience and education
| Adrians Dāvis – Chairman of the Board | Alexander Miheyev (Александр Михеев) – | |
|---|---|---|
| Since 1997 – Chairman of the Board of the JSC "Latvijas Gāze"; involved in gas industry since 1965 1997 Physical Energy Institute of Latvian Science Academy, academic degree of doctor in engineering (Dr.sc.ing.). |
Board member, Vice-Chairman of the Board Since 2003 First Deputy Head of the Marketing, Gas and Liquid Hydrocarbon Processing Department of the OJSC Gazprom; involved in gas industry since 1968 1968 Graduated from the Moscow Oil and Gas Industry Institute named after I. M. Gubkin and obtained the qualifications of engineer in design and operation of oil and gas pipelines, gas storage facilities and oil tanks |
|
| Mario Nullmeier – Board member, Vice | Anda Ulpe – Board member | |
| Chairman of the Board Since 2005 Head of the Baltic Office of E.ON Ruhrgas International AG in Tallinn, Estonia 2000 Master Degree in Global Business Administration |
Since 1997 Board member of the JSC "Latvijas Gāze"; involved in gas industry since 1984 2002 the University of Latvia, Master Degree of Social Sciences in Economics |
|
| Gints Freibergs – Board member Since 1997 Board member of the JSC "Latvijas Gāze"; involved in gas industry since 1984 1984 Polytechnical Institute of Riga, engineer in industrial heat power |
Names, surnames and posts of Council members (before January 1, 2014) |
Adrians Dāvis – Chairman of the Board Alexander Miheyev (Александр Михеев) – Board member, Vice-Chairman of the Board Jörg Tumat - Board member, Vice-Chairman of the Board Anda Ulpe - Board member Gints Freibergs - Board member |
Council members (term of office of the Council - January 1, 2014 to December 31, 2016) – names, surnames, posts, recent professional experience and education
Report of the Board of Directors
The Joint Stock Company "Latvijas Gāze" (hereinafter – the Company) is the only natural gas transmission, storage, distribution and sale operator in Latvia. The company supplies natural gas to 442.5 thousand customers in Latvia, and in winter – also to Estonia, the Northwestern part of Russia and Lithuania from the Inčukalns Underground Gas Storage Facility (hereinafter – Inčukalns UGS).
The goal of the Company is to strengthen its leading position in the fuel market of Latvia by enhancing the accessibility of natural gas, facilitating the diversity of its consumption and ensuring for consumers in Latvia one the most stable supplies in Europe.
The vision of the Company is to make Latvia one of the largest natural gas storage hubs in Europe by using the unique geological structures of our country.
The mission of the Company is to contribute to the economy of the Baltic region by ensuring the security of energy supplies, the development of the industry and the competitiveness of prices.
The underlying principles of financial activity of the Company are as follows:
- investments in modernization of the infrastructure related to natural gas supply stability and security;
- investments in the development of infrastructure and the quality of service;
- competitive price of natural gas and services;
- profit that enables the company to make investments and pay dividends in compliance with the international natural gas industry practice. Such amount of profit is regulated by the Public Utility Commission of the Republic of Latvia by setting the level of capital return (currently the capital return is set to 8.0 % of the regulated asset basis).
1. Operation of the Company in the reporting period
In 12 months of the year 2013, the Company sold to the consumers 1451.9 million m3 of natural gas. In comparison with the respective period of 2012, the natural gas sales decreased by 0.8 % due to the differences in outdoor air temperature and investments by heat supply companies in the use of renewable energy resources and a partial replacement of fossil fuels with woodchip.
The gas injection season at the Inčukalns UGS began on April 17, 2013. Upon starting natural gas injection, the reserves of active gas at the Inčukalns UGS were 182.35 million nm3 .
The injection season at the Inčukalns UGS was completed on October 14, 2013, and 2 136.7 million nm3 of natural gas was injected over the season, reaching 2 300.0 million nm3 at the end of the season.
Over 12 months of 2013, the consumers were sold natural gas and provided services for LVL 403.4 million (EUR 574.0 million), which is by 5,6 % less than in the respective period of 2012.
The decrease of income year-on-year stems from the lower natural gas sales volume and fact that during 12 months of 2013, due to changes in oil product quotations and currency rates, the residential and industrial customers were applied differential natural gas sale end-user tariffs corresponding to a natural gas sale price 4.1% below that of the 12 months of 2012. The income saw decrease both in the industrial and household sector.
The Company completed 12 months of 2013 with a profit of LVL 22.6 million (EUR 32.2 million), which is 1.3% lower than in the respective period 2012 when the Company profited LVL 22.9 million (EUR 32.6 million).
Within the framework of the capital investment programme, LVL 19.8 million (EUR 28.2 million) of investment funds was spent over 12 months of 2013, mostly on the renovation of gas
Report of the Board of Directors (continued) 1. Operation of the Company in the reporting period (continued)
transmission and distribution pipelines, the modernization of technological equipment and the reconstruction of wells.
Inčukalns UGS
Over the reporting period, the Inčukalns UGS saw completion of the modernization of 8 production wells, with LVL 3.4 million (EUR 4.8 million) spent. The gas compression unit of compressor station CS-2 underwent a capital repair, which cost LVL 1.3 million (EUR 1.8 million).
Operation Unit "Gas Transport"
The elimination of damage found in the diagnostics of gas transmission pipelines is in progress. LVL 1.7 million (EUR 2.4 million) has been spent on the renovation of gas pipelines.
In 2013, the construction of new passages of gas transmission pipelines Pskov-Riga and Izborsk-Inčukalns UGS across the River Gauja began. The project envisages moving inverted siphons and cables to a safer and more flood-proof location using the sloped drilling method. LVL 1.5 million (EUR 2.1 million) has been spent during 2013, and completion is expected in 2016, with the total project costs estimated to LVL 9.4 million (EUR 13.4 million).
The reconstruction of the gas metering station "Korneti" with the construction of a gas flow adjustment unit was also completed during the reporting period. The total costs are EUR 0.78 million (EUR 1.11 million), and the object was put into operation in January 2014.
Distribution system
In 2013, LVL 0.9 million (EUR 1.3 million) was spent on the construction of gas distribution pipelines and LVL 1.4 million (EUR 2.0 million) – on the renovation of existing pipelines.
The replacement and reconstruction of electrical protection equipment is in progress, and LVL 0.42 million (EUR 0.6 million) has been spent for this purpose.
| 2013 LVL'000 |
2012 LVL'000 |
2011 LVL'000 |
2013 EUR'000 |
2012 EUR'000 |
2011 EUR'000 |
|
|---|---|---|---|---|---|---|
| Net turnover Profit before income tax, |
403 384 | 427 413 | 353 338 | 573 964 | 608 154 | 502 755 |
| interest payments, depreciation and amortization (EBITDA) Profit before income tax, interest payments, |
47 738 | 53 584 | 50 102 | 67 925 | 76 244 | 71 290 |
| depreciation and amortization to net turnover (EBITDA %) Profit of operational |
11.83% | 12.54% | 14.18% | 11.83% | 12.54% | 14.18% |
| activity | 24 472 | 24 448 | 28 888 | 34 821 | 34 787 | 41 105 |
| Profitability of operational activity (%) Profit of reporting period Commercial profitability |
6.07% 20 702 |
5.72% 21 201 |
8.18% 25 729 |
6.07% 29 457 |
5.72% 30 167 |
8.18% 36 610 |
| (%) | 5.13% | 4.96% | 7.28% | 5.13% | 4.96% | 7.28% |
The key indices of the Company:
Report of the Board of Directors (continued)
| 1.Operation of the Company in the reporting period (continued) | |||
|---|---|---|---|
| -- | -- | ---------------------------------------------------------------- | -- |
| 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|
| LVL'000 | LVL'000 | LVL'000 | EUR'000 | EUR'000 | EUR'000 | |
| Total liquidity | 1.78 | 1.94 | 2.15 | 1.78 | 1.94 | 2.15 |
| Total assets | 610 193 | 582 793 | 463 777 | 868 226 | 829 240 | 659 895 |
| Equity | 427 811 | 426 795 | 345 537 | 608 721 | 607 275 | 491 655 |
| Return on assets (ROA) | 3.47% | 4.05% | 5.76% | 3.47% | 4.05% | 5.76% |
| Return on equity (ROE) | 4.84% | 5.49% | 7.52% | 4.84% | 5.49% | 7.52% |
| Number of shares | 39 900 | 39 900 | 39 900 | 39 900 | 39 900 | 39 900 |
| LVL | LVL | LVL | EUR | EUR | EUR | |
| Profit per share | 0.519 | 0.531 | 0.645 | 0.738 | 0.756 | 0.918 |
| P/E | 12.72 | 11.31 | 8.76 | 12.72 | 11.31 | 8.76 |
| BV | 10.72 | 10.70 | 8.66 | 15.26 | 15.22 | 12.32 |
| P/BV | 0.62 | 0.56 | 0.65 | 0.62 | 0.56 | 0.65 |
| Dividends per share | - | 0.50 | 0.60 | - | 0.71 | 0.85 |
| Return on dividends | ||||||
| (dividends per share/ profit | ||||||
| per share) | - | 0.94 | 0.93 | - | 0.94 | 0.93 |
| Share price at the end of | ||||||
| the period | 6.60 | 6.01 | 5.65 | 9.39 | 8.55 | 8.04 |
2. Research and development
In order to ensure a continuous natural gas supply to the customers and a safe operation of the gas supply system, the Company has developed the "Plan of measures for improvement of gas supply system safety of Joint Stock Company "Latvijas Gāze" in 2010 to 2015". It has been drawn up on the basis of opinions of the Russian companies "Gazobezopasnostj" and "Ļentransgaz", the institutes "VNIIGAZ" and "Giprospecgaz", as well as the German companies "Pipeline Engineering GmbH", "Untergrundspeicher und Geotechnologie – Systeme GmbH", "E.ON Engineering GmbH", "E.ON Ruhrgas International AG" and other partners regarding the technical condition of equipment and the modernization options. The plan of measures envisages investments in the improvement of safety in the total amount of LVL 50.6 million (EUR 72.0 million).
In 2011, the OJSC "Gazprom VNIIGAZ" drew up a concept of the modernization and improvement of operation safety of technological equipment at the Inčukalns UGS till 2025. The concept features two development scenarios – with and without an increase of the capacity of natural gas storage. The projected costs are LVL 253 million (EUR 360 million) and LVL 133.5 million (EUR 190 million) respectively. Based on this document, the Company prepared a project "Modernization and expansion of Inčukalns UGS" and together with the JSC "Lietuvos Dujos" – a project "Increase of capacity of Latvian-Lithuanian interconnection". Both were submitted to the European Commission for inclusion in the European list of common interest projects, as stipulated by the Infrastructure Regulation.
Both projects are featured in the initial list of projects of common European interest. In the case of a favourable decision, financing from the European funds could be available for their implementation.
Report of the Board of Directors (continued)
3. International cooperation
Project EERP-INTG-RF-LV-LT was ended in year 2013. On August 17, 2010, the Company received the resolution No. C(2010) 5554 of the European Commission dated 13.08.2010 on the award of a financial grant to the Action No. EEPR-2009-INTg-RF-LV-LT-SI2.566527/SI2.566531/SI2. 566541/SI2.566543 in compliance with the EC Regulation No. 663/2009 on gas and electricity interconnections. Under this resolution, a total of EUR 10.0 million was granted – EUR 7.5 million for the modernization of wells at the Inčukalns UGS and LVL 2.5 million for a gas passage across the River Daugava and the construction of pig receiver with a view to stabilize natural gas supplies between Lithuania and Latvia in emergency situations. The planned works were completed in 2011, and two more wells of the Inčukalns UGS were modernized in 2012 using the funds granted but not spent.
EUR 24.1 million has been spent on the project in total, incl. EUR 16.2 million on the modernization of the Inčukalns UGS wells and LVL 7.9 million on the gas passage across the River Daugava and the construction of a pig receiver.
On the 1st August 2013, has been received last payment from the European Commission - EUR 3.0 million. The rest amount of totally granted EUR 10.0 million has been received on April 17, 2011 – EUR 1.95 million and on April 1, 2012 – EUR 5.05 million.
4. Shares and shareholders
The composition of shareholders of the Company1 as of December 31, 2013 and previous 2 periods:
| Share | 31.12.2013. | 31.12.2012. | 31.12.2011. |
|---|---|---|---|
| "E.ON Ruhrgas International" GmbH | 47.2% | 47.2% | 47.2% |
| "Gazprom" OJSC | 34.0% | 34.0% | 34.0% |
| "Itera Latvija" LLC | 16.0% | 16.0% | 16.0% |
| Others | 2.8% | 2.8% | 2.8% |
| TOTAL | 100.0 % | 100.0 % | 100.0 % |
The composition of shareholders of the Company as to the industries they represent as of December 31, 2013:
1 Shareholders owning at least 5 % of capital
Report of the Board of Directors (continued)
4. Shares and shareholders (continued)
| Board members | Number of shares | |
|---|---|---|
| Chairman of the Board | Adrians Dāvis | 417 |
| Vice-Chairman of the Board | Joerg Tumat | 0 |
| Vice-Chairman of the Board | Alexander Miheyev | 0 |
| Board member | Anda Ulpe | 729 |
| Board member | Gints Freibergs | 416 |
| Council members | Number of shares | |
| Chairman of the Council | Kirill Seleznev | 0 |
| Vice-Chairman of the Council | Juris Savickis | 0 |
| Vice-Chairman of the Council | Achim Saul | 0 |
| Council member | Matthias Kohlenbach | 0 |
| Council member | Rainer Link | 0 |
| Council member | Mario Nullmeier | 0 |
| Council member | Uwe H. Fip | 0 |
| Council member | Vlada Rusakova | 0 |
| Council member | Nikolay Dubik | 0 |
| Council member | Elena Karpel | 0 |
| Council member | Elena Michaylova | 0 |
The number of shares held by the members of the Board and the Council of the Company as of December 31, 2013:
As from February 15, 1999, the shares of the Company are quoted at the NASDAQ OMX Riga exchange, and their trading code as from August 1, 2004 is GZE1R.
| ISIN | LV0000100899 |
|---|---|
| Exchange code | GZE1R |
| List | Second list |
| Nominal value | 1.00 LVL |
| Total number of securities | 39 900 000 |
| Number of securities in public trading | 25 328 520 |
| Guaranteers of liquidity | None |
| 2013 | 2012 | 2011 | 2010 | 2009 | |
|---|---|---|---|---|---|
| Share price (LVL): | |||||
| First | 6.110 | 5.895 | 4.800 | 4.57 | 4.55 |
| Highest | 6.930 | 6.350 | 7.000 | 6.00 | 6.00 |
| Lowest | 6.030 | 5.380 | 4.601 | 4.57 | 3.32 |
| Average | 6.360 | 5.863 | 5.320 | 5.15 | 4.31 |
| Last | 6.600 | 6.010 | 5.651 | 4.90 | 4.10 |
| Change | 8.02% | 1.95% | 17.73% | 7.22% | -9.89% |
| Number of transactions | 1 479 | 1 767 | 1 284 | 988 | 1 267 |
| Number of shares traded | 121 774 | 168 115 | 218 132 | 85 493 | 64 319 |
| Turnover (million LVL) | 0.774 | 0.986 | 1.160 | 0.440 | 0.277 |
| Capitalization (million LVL) |
263.340 | 239.799 | 225.475 | 195.510 | 163.590 |
Source: NASDAQ OMX Riga
Report of the Board of Directors (continued)
4. Shares and shareholders (continued)
The capitalization value of the Company in 12 months of 2013 reached LVL 263.34 million (EUR 374,7 million) - by LVL 23.54 million (EUR 33,5 million) more than in 12 months of the previous reporting period. By share market capitalization the Company took the 1st place among companies quoted at NASDAQ OMX RIGA and the 4th place among companies quoted at NASDAQ OMX Baltic (2012: accordingly 1st and 4th).
The dynamics of the Company share price and indexes.
| The shares of the Company are | OMXBGI, OMXBPI, OMXRGI |
|---|---|
| included in the following index | |
| baskets |
OMX Baltic
An index of all shares, Baltic-wide. Its basket consists of the shares of the Official and Second list of the Baltic exchanges. The index reflects the current situation and changes in the Baltic market overall.
OMX Riga
An index of all shares, local. Its basket consists of the shares of the Official and Second list of the NASDAQ OMX Riga exchange. The index reflects the current situation and changes in the NASDAQ OMX Riga exchange.
The Company share price and changes of OMX Riga GI and OMX Baltic GI (01.01.2011. - 31.12.2013.)
Report of the Board of Directors (continued)
4. Shares and shareholders (continued)
| Indexes/Shares | 01.01.2011. | 31.12.2013. | Change |
|---|---|---|---|
| OMX Riga | 393.53 | 460.13 | 16.92% |
| OMX Baltic GI | 421.36 | 463.36 | 10.21% |
| GZE1R (LVL) | 4.90 | 6.60 | 34.69% |
Chairman of the Board A. Dāvis
Board meeting minutes No. 6 (2014) Riga, February 13, 2014
Statement of Director's responsibility
The Board of Directors of the Joint Stock Company "Latvijas Gāze" (hereinafter – the Company) is responsible of the preparation of the interim financial statements of the Company. Interim financial statements of the Company are not audited.
The financial statements on pages 13 to 19 are prepared in accordance with the underlying accounting records and source documents and present fairly the financial position of the Company as of 31 December 2013 and the result of its operations and cash flows for the period ended 31 December 2013.
The financial statements are prepared in accordance with International Financial Reporting Standards on a going concern basis. Appropriate accounting policies have been applied on a consistent basis. The Board of Directors in the preparation of the financial statements has made prudent and reasonable judgements and estimates.
The Board of Directors of JSC "Latvijas Gāze" is responsible for the maintenance of proper accounting records, the safeguarding of the Company's assets and the prevention and detection of fraud and other irregularities in the Company. The Board of Directors is also responsible for operating the Company in compliance with the legislation of the Republic of Latvia.
On behalf of the Board of Directors,
Adrians Dāvis Chairman of the Board
Riga, 13th February 2014
Balance sheet
| Note | 31.12.2013. | 31.12.2012. | 31.12.2013. | 31.12.2012. | |
|---|---|---|---|---|---|
| LVL'000 | LVL'000 | EUR'000 | EUR'000 | ||
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment | 397 863 | 402 397 | 566 108 | 572 559 | |
| Intangible assets | 1 961 | 2 119 | 2 790 | 3 015 | |
| Trade receivables | 6 | 2 113 | 9 | 3 007 | |
| Total non-current assets | 399 830 | 406 629 | 568 907 | 578 581 | |
| Current assets | |||||
| Inventories | 1 | 130 136 | 93 276 | 185 167 | 132 719 |
| Trade receivables | 27 734 | 57 253 | 39 462 | 81 464 | |
| Current income tax receivable | 1 186 | 1 734 | 1 688 | 2 467 | |
| Other current assets | 27 725 | 1 317 | 39 448 | 1 875 | |
| Cash and cash equivalents | 23 582 | 22 584 | 33 554 | 32 134 | |
| Total current assets | 210 363 | 176 164 | 299 319 | 250 659 | |
| TOTAL ASSETS | 610 193 | 582 793 | 868 226 | 829 240 | |
| EQUITY AND LIABILITIES | |||||
| Equity | |||||
| Share capital | 39 900 | 39 900 | 56 773 | 56 773 | |
| Share premium | 14 320 | 14 320 | 20 376 | 20 376 | |
| Revaluation reserve | 2 | 265 732 | 267 362 | 378 103 | 380 422 |
| Other reserves | 80 040 | 78 639 | 113 887 | 111 893 | |
| Retained earnings | 3 | 27 819 | 26 574 | 39 582 | 37 811 |
| Total equity | 427 811 | 426 795 | 608 721 | 607 275 | |
| Liabilities | |||||
| Non-current liabilities | |||||
| Deferred income tax liabilities Accruals for post employment benefits and other employee |
39 671 | 40 237 | 56 447 | 57 252 | |
| benefits | 4 085 | 4 581 | 5 812 | 6 518 | |
| Deferred income | 20 215 | 20 363 | 28 763 | 28 974 | |
| Total non-current liabilities | 63 971 | 65 181 | 91 022 | 92 744 | |
| Current liabilities | |||||
| Trade payables | 91 114 | 61 440 | 129 643 | 87 421 | |
| Deferred income | 816 | 794 | 1 161 | 1 130 | |
| Other current liabilities | 26 481 | 28 583 | 37 679 | 40 670 | |
| Total current liabilities | 118 411 | 90 817 | 168 483 | 129 221 | |
| Total liabilities | 182 382 | 155 998 | 259 505 | 221 965 | |
| TOTAL EQUITY AND LIABILITIES |
610 193 | 582 793 | 868 226 | 829 240 |
Income statement
| 31.12.2013. | 31.12.2012. | 31.12.2013. | 31.12.2012. | ||
|---|---|---|---|---|---|
| Note | LVL'000 | LVL'000 | EUR'000 | EUR'000 | |
| Revenue | 4 | 403 384 | 427 413 | 573 964 | 608 154 |
| Cost of sales | 5 | (365 491) | (394 693) | (520 047) | (561 597) |
| Gross profit | 37 893 | 32 720 | 53 917 | 46 557 | |
| Administrative expenses | 6 | (12 664) | (9 084) | (18 019) | (12 926) |
| Other income | 7 | 3 179 | 5 383 | 4 523 | 7 660 |
| Other expenses | 8 | (3 936) | (4 571) | (5 600) | (6 504) |
| Operating profit | 24 472 | 24 448 | 34 821 | 34 787 | |
| Finance income | 9 | 109 | 286 | 155 | 407 |
| Finance expenses | 9 | - | - | - | - |
| Finance income, net | 9 | 109 | 286 | 155 | 407 |
| Profit before income tax | 24 581 | 24 734 | 34 976 | 35 194 | |
| Income tax expense | (3 879) | (3 533) | (5 519) | (5 027) | |
| Profit for the period | 20 702 | 21 201 | 29 457 | 30 167 |
Statement of comprehensive income
Other comprehensive income
| Tax sections, net Revaluation of property, plant and equipment - gross |
2 | 311 | 98 820 | 443 | 140 608 |
|---|---|---|---|---|---|
| Deffered income tax liability arising on the revaluation of property, plant and equipment |
2 | (47) | (14 823) | (67) | (21 091) |
| Other comprehensive income for the period, net of tax |
264 | 83 997 | 376 | 119 517 | |
| Profit for the period | 20 702 | 21 201 | 29 457 | 30 167 | |
| Total comprehensive income | |||||
| for the period | 20 966 | 105 198 | 29 833 | 149 684 |
Statement of cash flows
| 31.12.2013. | 31.12.2012. | 31.12.2013. | 31.12.2012. | |
|---|---|---|---|---|
| LVL'000 | LVL'000 | EUR'000 | EUR'000 | |
| Cash flow from operating activities Cash generated from operations |
69 246 | 32 843 | 98 528 | 46 731 |
| Interest received | 272 | 713 | 387 | 1 015 |
| Income tax paid | (3 609) | (3 557) | (5 135) | (5 061) |
| Net cash generated from operating | ||||
| activities | 65 909 | 29 999 | 93 780 | 42 685 |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | (19 055) | (18 337) | (27 113) | (26 091) |
| Purchase of intangible assets | (751) | (851) | (1 068) | (1 211) |
| Proceeds from sale of property, plant and | ||||
| equipment | 55 | 69 | 78 | 98 |
| Received term deposits | - | 9 207 | - | 13 100 |
| Term deposits | (27 339) | - | (38 900) | - |
| Net cash used in investing activities | (47 090) | (9 912) | (67 003) | (14 104) |
| Cash flow from financing activities | ||||
| EC funding received | 2 129 | 1 380 | 3 029 | 1 964 |
| Dividends paid | (19 950) | (23 940) | (28 386) | (34 064) |
| Net cash (used in) / generated from financing activities |
(17 821) | (22 560) | (25 357) | (32 100) |
| Net (decrease) / increase in cash and cash | ||||
| equivalents | 998 | (2 473) | 1 420 | (3 519) |
| Cash and cash equivalents at the beginning of the year |
22 584 | 25 057 | 32 134 | 35 653 |
| Cash and cash equivalents at the end of the year |
23 582 | 22 584 | 33 554 | 32 134 |
Statement of changes in equity
| Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Retained earnings |
Total | |
|---|---|---|---|---|---|---|
| LVL'000 | LVL'000 | LVL'000 | LVL'000 | LVL'000 | LVL'000 | |
| 31 December, 2011 | 39 900 | 14 320 | 185 105 | 76 883 | 29 329 | 345 537 |
| Income in year 2012, |
||||||
| total | - | - | 82 256 | - | 22 942 | 105 198 |
| Transfer to reserves | - | - | - | 1 756 | (1 756) | - |
| Dividends for 2011 | - | - | - | - | (23 940) | (23 940) |
| Rounding | - | - | 1 | - | (1) | - |
| 31 December, 2012 | 39 900 | 14 320 | 267 362 | 78 639 | 26 574 | 426 795 |
| 31 December, 2012 | 39 900 | 14 320 | 267 362 | 78 639 | 26 574 | 426 795 |
| Income in year 2013, |
||||||
| total | - | - | (1 630) | - | 22 596 | 20 966 |
| Transfer to reserves | - | - | - | 1 401 | (1 401) | - |
| Dividends for 2012 | - | - | - | - | (19 950) | (19 950) |
| Rounding | - | - | - | - | - | - |
| 31 December, 2013 | 39 900 | 14 320 | 265 732 | 80 040 | 27 819 | 427 811 |
| Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Retained earnings |
Total | |
|---|---|---|---|---|---|---|
| EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
| 31 December, 2011 | 56 773 | 20 376 | 263 381 | 109 395 | 41 730 | 491 655 |
| Income in year 2012, |
||||||
| total | - | - | 117 040 | - | 32 644 | 149 684 |
| Transfer to reserves | - | - | - | 2 499 | (2 499) | - |
| Dividends for 2011 | - | - | - | - | (34 064) | (34 064) |
| Rounding | - | - | 1 | (1) | - | - |
| 31 December, 2012 | 56 773 | 20 376 | 380 422 | 111 893 | 37 811 | 607 275 |
| 31 December, 2012 | 56 773 | 20 376 | 380 422 | 111 893 | 37 811 | 607 275 |
| Income in year 2013, |
||||||
| total | - | - | (2 318) | - | 32 151 | 29 833 |
| Transfer to reserves | - | - | - | 1 993 | (1 993) | - |
| Dividends for 2012 | - | - | - | - | (28 386) | (28 386) |
| Rounding | - | - | (1) | 1 | (1) | (1) |
| 31 December, 2013 | 56 773 | 20 376 | 378 103 | 113 887 | 39 582 | 608 721 |
Notes to the financial statements
| 31.12.2013. | 31.12.2012. | 31.12.2013. | 31.12.2012. | ||
|---|---|---|---|---|---|
| LVL'000 | LVL'000 | EUR'000 | EUR'000 | ||
| 1 | INVENTORIES | ||||
| Materials and spare parts | |||||
| (at net realisable value) | 5 081 | 3 217 | 7 230 | 4 577 | |
| Gas and fuel (at cost) | 125 055 | 90 059 | 177 937 | 128 142 | |
| 130 136 | 93 276 | 185 167 | 132 719 | ||
| 2 | REVALUATION RESERVE | ||||
| At the beginning of the period | 267 362 | 185 105 | 380 422 | 263 381 | |
| Revaluation of property, plant and | |||||
| equipment | 311 | 98 820 | 443 | 140 608 | |
| Deferred income tax liability | |||||
| arising on the revaluation of | |||||
| property, plant and equipment | (47) | (14 823) | (67) | (21 091) | |
| Disposal of revalued property, plant and equipment |
(2 228) | (2 048) | (3 170) | (2 914) | |
| Deferred income tax from | |||||
| excluded revaluated fixed assets | 334 | 307 | 476 | 437 | |
| Rounding | - | 1 | (1) | 1 | |
| At the end of the period | 265 732 | 267 362 | 378 103 | 380 422 | |
| 3 | RETAINED EARNINGS | ||||
| At the beginning of the period | 26 574 | 29 329 | 37 811 | 41 730 | |
| Disposal of revalued property, | |||||
| plant and equipment | 1 894 | 1 741 | 2 695 | 2 477 | |
| Profit for the period | 20 702 | 21 201 | 29 457 | 30 167 | |
| Transfer to reserves | (1 401) | (1 756) | (1 993) | (2 499) | |
| Dividends for previous period | (19 950) | (23 940) | (28 386) | (34 064) | |
| Rounding | - | (1) | (2) | - | |
| At the end of the period | 27 819 | 26 574 | 39 582 | 37 811 | |
| 4 | REVENUE | ||||
| Sales per customers' groups are as follows: | |||||
| Income from natural gas sales to | |||||
| industrial customers | 345 106 | 363 270 | 491 042 | 516 886 | |
| Income from natural gas sales to | |||||
| residential customers | 44 176 | 46 841 | 62 857 | 66 649 | |
| Income from transmission and storage of natural gas |
13 396 | 16 548 | 19 061 | 23 546 | |
| Other services | 706 | 754 | 1 004 | 1 073 | |
| 403 384 | 427 413 | 573 964 | 608 154 | ||
| 5 | COST OF SALES | ||||
| Purchase of natural gas | 314 634 | 335 949 | 447 684 | 478 012 | |
| Salaries | 11 716 | 12 102 | 16 670 | 17 220 | |
| Social insurance contributions | 2 783 | 2 865 | 3 960 | 4 077 | |
| Life, health and pension insurance | 798 | 852 | 1 136 | 1 212 | |
| Materials and spare parts | 7 385 | 9 013 | 10 508 | 12 824 | |
| Depreciation and amortisation | 22 617 | 28 425 | 32 181 | 40 445 | |
| Other | 5 558 | 5 487 | 7 908 | 7 807 | |
| 365 491 | 394 693 | 520 047 | 561 597 |
6 ADMINISTRATIVE EXPENSES
| 12 664 | 9 084 | 18 019 | 12 926 | |
|---|---|---|---|---|
| Other expenses | 3 739 | 1 335 | 5 320 | 1 900 |
| and doubtful debts, net | 2 275 | 1 264 | 3 237 | 1 799 |
| Provisions for impairment of bad | ||||
| Bank charges | 86 | 88 | 122 | 125 |
| Depreciation and amortisation | 576 | 573 | 820 | 815 |
| Real estate tax | 763 | 769 | 1 086 | 1 094 |
| Maintenance and utilities | 671 | 744 | 955 | 1 059 |
| Life, health and pension insurance | 145 | 153 | 206 | 218 |
| Social insurance contributions | 790 | 765 | 1 124 | 1 088 |
| Salaries | 3 619 | 3 393 | 5 149 | 4 828 |
7 OTHER INCOME
| 3 179 | 5 383 | 4 523 | 7 660 | |
|---|---|---|---|---|
| Interest income | 138 | 330 | 196 | 469 |
| rates, net | 666 | 2 093 | 948 | 2 978 |
| Income from increase in exchange | ||||
| Other income | 693 | 1 207 | 986 | 1 718 |
| obsolete inventories impairment | 74 | 208 | 105 | 296 |
| Provisions for slow moving and | ||||
| financing of construction works | 615 | 592 | 875 | 843 |
| Income from contribution to | ||||
| Penalties from customers | 993 | 953 | 1 413 | 1 356 |
8 OTHER EXPENSES
| Materials | 27 | 28 | 38 | 40 |
|---|---|---|---|---|
| Salaries | 197 | 215 | 280 | 306 |
| Social insurance contributions | 25 | 28 | 36 | 40 |
| Depreciation and amortisation | 73 | 138 | 104 | 196 |
| Sponsorship | 2 104 | 2 183 | 2 994 | 3 106 |
| Loss from sale of fixed assets | 1 190 | 1 683 | 1 693 | 2 395 |
| Other expense | 320 | 296 | 455 | 421 |
| 3 936 | 4 571 | 5 600 | 6 504 | |
| EXPENSES BY NATURE | ||||
| Purchase of natural gas | 314 634 | 335 949 | 447 684 | 478 012 |
| Depreciation and amortisation | 23 266 | 29 136 | 33 105 | 41 456 |
| Employee benefit expense | 20 073 | 20 373 | 28 561 | 28 989 |
| Material and spare parts | 7 412 | 9 041 | 10 546 | 12 864 |
| Net provisions for impaired | ||||
| receivables | 2 275 | 1 264 | 3 237 | 1 799 |
| Other expenses | 14 431 | 12 585 | 20 533 | 17 907 |
| 382 091 | 408 348 | 543 666 | 581 027 |
9 FINANCE INCOME, NET
| Finance income | ||||
|---|---|---|---|---|
| - Interest income | 109 | 286 | 155 | 407 |
| 109 | 286 | 155 | 407 | |
| Finance expenses | ||||
| - Interest expenses | - | - | - | - |
| - | - | - | - | |
| Finance income, net | 109 | 286 | 155 | 407 |