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Latvijas Gaze
Quarterly Report • Nov 29, 2012
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Quarterly Report
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"Latvijas Gāze" Joint Stock Company
Unaudited Financial Report of 9 months of 2012
Prepared in accordance with the International Financial Reporting Standards
Riga, 2012
| Information on the Company 3 | |
|---|---|
| Report of the Board of Directors 5 | |
| Balance sheet11 | |
| Income statement12 | |
| Statement of comprehensive income12 | |
| Statement of cash flows13 | |
| Statement of changes in equity14 | |
| Notes to the financial statements15 |
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 – September 30, 2012 |
Board members – names, surnames, posts, recent professional experience and education
Adrians Dāvis – Chairman of the Board 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.).
Alexander Miheyev (Александр Михеев) – 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
Anda Ulpe – Board member
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
involved in gas industry since 1998.
Jörg Tumat – Board member, Vice-Chairman of the Board (since 2006)
2001 – 2006 E.ON Ruhrgas AG / Ruhrgas AG. Eastern Gas Purchase Department, Head of Division; OJSC "Gazprom" share and eastern gas purchase contracts;
Since 1997 Board member of the JSC "Latvijas Gāze"; involved in gas industry since 1984
2001 – 2004 the University of Hagena, Diploma in Business Administration (Dipl.-Betriebswirt)
1984 Polytechnical Institute of Riga, engineer in industrial heat power
Council members (since July 6, 2012) – names, surnames, posts, recent professional experience and education
Kirill Seļeznev (Кирилл Селезнев) – Chairman of the Council, Represents the interest of OJSC Gazprom
Since March 20, 2003 Head of the Gas and Liquid Hydrocarbon Sales and Processing Department, OJSC Gazprom; Member of Management Committee, OJSC Gazprom
1997 Graduated from Baltic State Technical University of St. Petersburg named after D. F. Ustinov – Engineering of Impulse Devices and Automated Rotation Lines 2002 Graduated from St. Petersburg State University – Credit Theory and Finance Management
Matthias Kohlenbach – Vice-Chairman of the Council, Represents the interest of E.ON Ruhrgas International GmbH
Since July 2012 Member of the Board of Management of E.ON Ruhrgas International GmbH 2009 – 2012 Head of Corporate Law Department of E.ON Ruhrgas
Degree of doctor in Law
Mario Nullmeier – Council member, Represents the interest of E.ON Ruhrgas International GmbH
Since 2005 Head of the Baltic Office of E.ON Ruhrgas International AG in Tallinn, Estonia
2000 Master Degree in Global Business Administration
Peter Klingenberger – Council member, Represents the interest of E.ON Ruhrgas International GmbH
Since October 2010 Chairman of the Board of Management of E.ON Gas Storage GmbH April 2009 Managing Director of E.ON Gas Storage GmbH
Alexander Krasnenkov (Александр
international relations
Igor Nazarov (Игорь Назаров) – Council member, Represents the interest of LLC ITERA Latvija
Since 2007 Director of the Export Department, NGK ITERA (Moscow, Russia)
1982 Moscow State University of Foreign Affairs (MGIMO) (within the framework of the Ministtry of Foreign Affairs), Diploma of Commercial Department, which equals to a Master of Economics: an economist with knowledge of foreign languages (Italian and English)
Juris Savickis – Vice-Chairman of the Council, Represents the interest of LLC ITERA Latvija
Since 1996 LLC "ITERA Latvija", president
1970 – 1972 Polytechnical Institute of Riga, Graduate school 1983 - 1984 University of Qualification Raising for Executives, Faculty of International Relations
Andreas Rau – Council member, Represents the interest of E.ON Ruhrgas International GmbH
Since 2012 Member of the Board of Directors of SPP a.s., Bratislava
2006 – 2011 Member / Chairman of the Board of Directors of EUSTREAM a.s., Bratislava
1995 – 1997 Master's degree in European Studies from the University of Aachen
1989 – 1995 Diploma in Mechanical Engineering / Energy Technology from the University of Bochum
Uwe Fip – Council member, Represents the interest of E.ON Ruhrgas International GmbH
Since 2002 E.ON Ruhrgas AG – Senior Vice-President, Head of Eastern Department of Gas Supplies
Master in Oil Engineering, Degree in Business Management (Diploma – Merchant)
Vlada Rusakova (Влада Русакова) – Council member, Represents the interest of OJSC Gazprom
Since 2003 Head of the Strategic Development Department, OJSC Gazprom
Since 2003 Board member of the OJSC Gazprom
1977 Graduated from the Moscow Oil and Gas Industry Institute named after I. M. Gubkin and obtained the qualifications of engineer in design, planning and operation of oil and gas pipelines, gas storage facilities and oil tanks
Yelena Karpel (Елена Карпель) – Council member, Represents the interest of OJSC Gazprom
Since 2004 Gazprom's Council Member by the resolution of the Company's Shareholders' Meeting
1968 Korotchenko Kiev Institute of National Economy getting specialty in Industry Planning
| Names, | Kirill Selezņev (Кирилл Селезнев) – Chairman of the Council |
|---|---|
| surnames and | Juris Savickis – Vice-Chairman of the Council |
| Peter Frankenberg – Vice-Chairman of the Council | |
| posts of | Joachim Hockertz – Council member |
| Council | Mario Nullmeier – Council member |
| members | Uwe Fip – Council member |
| (before July 6, | Heinz Watzka – Council member |
| Yelena Karpel (Елена Карпель) – Council member | |
| 2012) | Alexander Krasnenkov (Александр Красненков) – Council |
| member | |
| Vlada Rusakova (Влада Русакова) – Council member | |
| Igor Nazarov (Игорь Назаров) – Council member |
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 441.7 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 9 months of 2012, the Company sold to the consumers 1017.9 million nm3 of natural gas. Compared to the respective period of 2011, natural gas sales have decreased by 9.2 % still being 1.8% or 17.8 million nm3 above the volume planned in the budget of 2012.
The gas injection season at the Inčukalns Underground Gas Storage Facility (hereinafter – Inčukalns UGS) began on April 25, 2012. Upon starting natural gas injection, the reserves of active gas at the Inčukalns UGS were 144.72 million nm3 .
The gas injection season at the Inčukalns UGS was completed on October 11, 2012 and over the season 2012, 2 199.5 million nm3 of natural gas were injected into the Inčukalns UGS, reaching the active gas volume of 2 300.0 million nm 3 at the end of the injection season.
Over 9 months of 2012, the consumers have been sold natural gas and provided services for LVL 293.5 million, which is by 18.7 % more than in the respective period of 2011 and by 2.9 % more than budgeted.
The rise of income over the respective period of 2011 has taken place because in the 9 months of 2012 the industrial and residential customers were applied differential natural gas sale end-user tariffs corresponding to a natural gas sale price, which was by 33 % higher than in the 9 months of 2011 due to quotations of the heavy fuel oil prices and changes in currency exchange rates. Compared to 2011, the income grew in both the industrial and the household customers sector.
The Company completed 9 months of 2012 with a profit of LVL 6.9 million, which is by 25 % less than in the respective period of 2011 when the profit amounted to LVL 9.2 million.
Within the framework of the capital investment programme, LVL 11.6 million of investment funds were spent over 9 months of 2012, mostly on the renovation of gas transmission and distribution pipelines, the modernization of technological equipment and wells.
Report of the Board of Directors (continued)
1. Operation of the Company in the reporting period (continued)
The key indices of the Company:
| 2012 9m | 2011 9m | 2010 9m | 2012 9m | 2011 9m | 2010 9m | |
|---|---|---|---|---|---|---|
| LVL'000 | LVL'000 | LVL'000 | EUR'000 | EUR'000 | EUR'000 | |
| Net turnover | 293 544 | 247 161 | 230 356 | 417 675 | 351 678 | 327 767 |
| Profit before income tax, interest payments, depreciation and amortization (EBITDA) |
34 441 | 28 430 | 27 907 | 49 005 | 40 452 | 39 708 |
| Profit before income tax, interest payments, depreciation and amortization to net |
||||||
| turnover (EBITDA %) | 11.73% | 11.50% | 12.11% | 11.73% | 11.50% | 12.11% |
| Profit of operational activity | 11 110 | 12 674 | 12 224 | 15 808 | 18 032 | 17 393 |
| Profitability of operational | ||||||
| activity (%) | 3.78% | 5.13% | 5.31% | 3.78% | 5.13% | 5.31% |
| Profit of reporting period | 6 907 | 9 192 | 8 985 | 9 827 | 13 078 | 12 784 |
| Commercial profitability (%) | 2.35% | 3.72% | 3.90% | 2.35% | 3.72% | 3.90% |
| Total liquidity | 1.45 | 1.42 | 1.53 | 1.45 | 1.42 | 1.53 |
| Total assets | 638 818 | 520 873 | 471 857 | 908 957 | 741 135 | 671 393 |
| Equity | 412 187 | 328 230 | 322 113 | 586 489 | 467 029 | 458 327 |
| Return on assets (ROA) | 1.19% | 1.85% | 1.86% | 1.19% | 1.85% | 1.86% |
| Return on equity (ROE) | 1.87% | 2.83% | 2.82% | 1.87% | 2.83% | 2.82% |
| Number of shares | 39 900 | 39 900 | 39 900 | 39 900 | 39 900 | 39 900 |
| LVL | LVL | LVL | EUR | EUR | EUR | |
| Profit per share | 0.173 | 0.230 | 0.225 | 0.246 | 0.328 | 0.320 |
| Share price over earnings per share (P/E) |
33.85 | 23.22 | 22.51 | 33.85 | 23.22 | 22.51 |
| Share book value (BV) | 10.33 | 8.23 | 8.07 | 14.70 | 11.70 | 11.49 |
| Price to book value (P/BV) | 0.57 | 0.65 | 0.63 | 0.57 | 0.65 | 0.63 |
| Share price at the end of period | 5.86 | 5.35 | 5.07 | 8.34 | 7.61 | 7.21 |
2. Research and development
In order to ensure uninterrupted natural gas supply to consumers and safe operation of the natural gas supply system, the Company has developed the "Action plan for the safety improvement of the Joint Stock Company "Latvijas Gāze" gas supply system 2010-2015". It was prepared based on the adjudgments of the Russian companies "Gazobezopasnostj" and "Lentransgaz", 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 modernization possibilities.
The action plan envisages investment in safety improvement in the total amount of LVL 50.6 million (EUR 72.0 million). This basically includes projects that are required for the improvement of system operation safety, the gasification of new units and the improvement of stability of gas supply throughout the region.
Report of the Board of Directors (continued)
2. Research and development (continued)
In 2011, the OJSC "Gazprom VNIIGAZ" prepared a programme of modernization of the Inčukalns UGS up to 2025. The concept covers two development scenarios – with and without increasing the natural gas storage capacity. The projected costs are LVL 253 million (EUR 360 million) and LVL 133.5 million (EUR 190 million) respectively.
3. International cooperation
Work on attracting and adopting funds from European Commission (hereinafter – EC). On 17th August 2010 the Company received from EC resolution Nr C (2010) 5554 dated 13.08.2010. on receiving financial grant for Action No. EEPR-2009-INTg-RF-LV-LT-SI2.566527/SI2.566531/SI2.566541/SI2.566543 in accordance with Regulation EC No. 663/2009 on establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy. In accordance with this resolution a total of EUR 10.0 million was granted – EUR 7.5 million for reconstruction of wells at the Inčukalns UGS and EUR 2.5 million for construction of a new underwater pass and receiving trap inspection with gauges.
As at September 30, 2012, LVL 24.1 million has been spent on the project – EUR 16.2 million on the modernization of wells at the Inčukalns UGS and EUR 7.9 million construction of a new underwater pass and receiving trap inspection with gauges.
As at September 30, 2012, funding has been received from the EC in the amount of EUR 7.0 million (on April 17, 2011 – EUR 1.95 million, on April 1, 2012 – EUR 5.05 million).
4. Shares and shareholders
The composition of shareholders of the Company1 as of December 31, 2011 and previous 2 periods:
| Share | 31.12.2011. | 31.12.2010. | 31.12.2009. |
|---|---|---|---|
| "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, 2011:
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 | 900 |
| Vice-Chairman of the Board | Alexander Miheyev | 417 |
| 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 | Matthias Kohlenbach | 0 |
| Council member | Andreas Rau | 0 |
| Council member | Mario Nullmeier | 0 |
| Council member | Uwe Fip | 0 |
| Council member | Peter Klingenberger | 0 |
| Council member | Vlada Rusakova | 0 |
| Council member | Alexander Krasnenkov | 0 |
| Council member | Yelena Karpel | 0 |
| Council member | Igor Nazarov | 0 |
The number of shares held by the members of the Board and the Council of the Company as of December 31, 2011:
The price of the shares of the Company at NASDAQ OMX Riga in 9 months of 2012 and in the respective period of previous years.
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 |
| 2008 9m | 2009 9m | 2010 9m | 2011 9m | 2012 9m | |
|---|---|---|---|---|---|
| Share price (LVL): | |||||
| First | 7.25 | 4.55 | 4.57 | 4.80 | 5.895 |
| Highest | 8.20 | 6.00 | 6.00 | 7.00 | 6.350 |
| Lowest | 6.00 | 3.32 | 4.57 | 4.60 | 5.380 |
| Average | 7.06 | 4.23 | 5.29 | 5.21 | 5.853 |
| Last | 6.00 | 5.00 | 5.07 | 5.35 | 5.860 |
| Change | -17.24% | 9.89% | 10.94% | 11.46% | -0.59% |
| Number of transactions | 1 372 | 925 | 675 | 1 009 | 1 392 |
| Number of shares traded | 37 383 | 48 608 | 50 878 | 162 762 | 145 232 |
| Turnover (million LVL) | 0.264 | 0.206 | 0.269 | 0.849 | 0.850 |
| Capitalization (million | |||||
| LVL) | 239.400 | 199.500 | 202.293 | 213.465 | 233.814 |
Source: NASDAQ OMX Riga
Report of the Board of Directors (continued)
4. Shares and shareholders (continued)
The capitalization value of the Company in 9 months of 2012 reached 233.8 million lats - by 20.3 million lats more than in 9 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 (2011 9m: accordingly 1st and 6th).
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 (01.01.2008. - 30.09.2012.)
Report of the Board of Directors (continued)
4. Shares and shareholders (continued)
| Indexes/Shares | 01.01.2008. | 30.09.2012. | Change |
|---|---|---|---|
| OMX Riga GI | 595,30 | 385,09 | -35,31% |
| OMX Baltic GI | 515,40 | 380,46 | -26,18% |
| The Company's share price (LVL) | 7,12 | 5,86 | -17,70% |
Chairman of the Board A. Dāvis
Board meeting minutes No. 45 (2012) Riga, November 22, 2012
Balance sheet
| Note | 30.09.2012. LVL'000 |
30.09.2011. LVL'000 |
30.09.2012. EUR'000 |
30.09.2011. EUR'000 |
|
|---|---|---|---|---|---|
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment | 402 193 | 313 394 | 572 269 | 445 919 | |
| Intangible assets | 1 667 | 1 962 | 2 372 | 2 792 | |
| Trade receivables | 1 898 | 3 | 2 701 | 4 | |
| Total non-current assets | 405 758 | 315 359 | 577 342 | 448 715 | |
| Current assets | |||||
| Inventories | 1 | 148 102 | 103 982 | 210 730 | 147 953 |
| Trade receivables | 14 254 | 12 235 | 20 282 | 17 409 | |
| Current income tax receivable | 5 989 | 4 502 | 8 522 | 6 406 | |
| Other current assets | 48 112 | 38 932 | 68 457 | 55 395 | |
| Cash and cash equivalents | 16 603 | 45 863 | 23 624 | 65 257 | |
| Total current assets | 233 060 | 205 514 | 331 615 | 292 420 | |
| TOTAL ASSETS | 638 818 | 520 873 | 908 957 | 741 135 | |
| 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 | 267 915 | 185 385 | 381 208 | 263 779 |
| Other reserves | 78 639 | 76 883 | 111 893 | 109 395 | |
| Retained earnings | 3 | 11 413 | 11 742 | 16 239 | 16 706 |
| Total equity | 412 187 | 328 230 | 586 489 | 467 029 | |
| Liabilities | |||||
| Non-current liabilities | |||||
| Deferred income tax liabilities Accruals for post employment benefits and other employee |
41 204 | 27 822 | 58 628 | 39 587 | |
| benefits | 4 589 | 5 295 | 6 530 | 7 534 | |
| Deferred income | 20 098 | 14 817 | 28 597 | 21 083 | |
| Total non-current liabilities | 65 891 | 47 934 | 93 755 | 68 204 | |
| Current liabilities | |||||
| Trade payables | 133 599 | 103 929 | 190 094 | 147 877 | |
| Corporate income tax payable | 4 731 | 4 301 | 6 732 | 6 120 | |
| Deferred income Other current liabilities |
780 21 630 |
6 766 29 713 |
1 110 30 777 |
9 627 42 278 |
|
| Total current liabilities | 160 740 | 144 709 | 228 713 | 205 902 | |
| Total liabilities | 226 631 | 192 643 | 322 468 | 274 106 | |
| TOTAL EQUITY AND LIABILITIES |
638 818 | 520 873 | 908 957 | 741 135 |
Income statement
| 30.09.2012. | 30.09.2011. | 30.09.2012. | 30.09.2011. | ||
|---|---|---|---|---|---|
| Note | LVL'000 | LVL'000 | EUR'000 | EUR'000 | |
| Revenue | 4 | 293 544 | 247 161 | 417 675 | 351 678 |
| Cost of sales | 5 | (275 563) | (218 354) | (392 091) | (310 690) |
| Gross profit | 17 981 | 28 807 | 25 584 | 40 988 | |
| Administrative expenses | 6 | (5 360) | (11 844) | (7 626) | (16 852) |
| Other income | 7 | 3 824 | 1 713 | 5 441 | 2 437 |
| Other expenses | 8 | (5 335) | (6 002) | (7 591) | (8 541) |
| Operating profit | 11 110 | 12 674 | 15 808 | 18 032 | |
| Finance income | 9 | 528 | 815 | 751 | 1 160 |
| Finance expenses | 9 | - | - | - | - |
| Finance income, net | 9 | 528 | 815 | 751 | 1 160 |
| Profit before income tax | 11 638 | 13 489 | 16 559 | 19 192 | |
| Income tax expense | (4 731) | (4 297) | (6 732) | (6 114) | |
| Profit for the period | 6 907 | 9 192 | 9 827 | 13 078 |
Statement of comprehensive income
Other comprehensive income
| Total comprehensive income for the period |
90 590 | 9 220 | 128 897 | 13 118 | |
|---|---|---|---|---|---|
| Profit for the period | 6 907 | 9 192 | 9 827 | 13 078 | |
| Other comprehensive income for the period, net of tax |
83 683 | 28 | 119 070 | 40 | |
| Deffered income tax liability arising on the revaluation of property, plant and equipment |
2 | (14 761) | - | (21 003) | - |
| Tax sections, net Revaluation of property, plant and equipment - gross |
2 | 98 444 | 28 | 140 073 | 40 |
Statement of cash flows
| 30.09.2012. LVL'000 |
30.09.2011. LVL'000 |
30.09.2012. EUR'000 |
30.09.2011. EUR'000 |
|
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Cash generated from operations | 30 109 | 45 549 | 42 841 | 64 810 |
| Interest received | 558 | 880 | 794 | 1 252 |
| Income tax paid | (3 592) | (5 734) | (5 111) | (8 159) |
| Net cash generated from operating | ||||
| activities | 27 075 | 40 695 | 38 524 | 57 903 |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | (11 488) | (12 148) | (16 346) | (17 285) |
| Purchase of intangible assets | (159) | (326) | (226) | (464) |
| Proceeds from sale of property, plant and | ||||
| equipment | 58 | 19 | 83 | 27 |
| Received term deposits | 9 207 | - | 13 100 | - |
| Term deposits | (9 207) | - | (13 100) | - |
| Net cash used in investing activities | (11 589) | (12 455) | (16 489) | (17 722) |
| Cash flow from financing activities | ||||
| Dividends paid | (23 940) | (19 950) | (34 064) | (28 386) |
| Net cash (used in) / generated from | ||||
| financing activities | (23 940) | (19 950) | (34 064) | (28 386) |
| Net (decrease) / increase in cash and cash equivalents |
(8 454) | 8 290 | (12 029) | 11 795 |
| Cash and cash equivalents at the beginning of the year |
25 057 | 37 573 | 35 653 | 53 462 |
| Cash and cash equivalents at the end of the year |
16 603 | 45 863 | 23 624 | 65 257 |
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, 2010 | 39 900 | 14 320 | 185 754 | 71 910 | 27 076 | 338 960 |
| Income in year 2011, |
||||||
| total | - | - | (369) | - | 9 589 | 9 220 |
| Transfer to reserves | - | - | - | 4 972 | (4 972) | - |
| Dividends for 2010 | - | - | - | - | (19 950) | (19 950) |
| Rounding | - | - | - | 1 | (1) | - |
| 30 September, 2011 | 39 900 | 14 320 | 185 385 | 76 883 | 11 742 | 328 230 |
| 31 December, 2011 | 39 900 | 14 320 | 185 105 | 76 883 | 29 329 | 345 537 |
| Income in year 2012, |
||||||
| total | - | - | 82 809 | - | 7 781 | 90 590 |
| Transfer to reserves | - | - | - | 1 756 | (1 756) | - |
| Dividends for 2011 | - | - | - | - | (23 940) | (23 940) |
| Rounding | - | - | 1 | - | (1) | - |
| 30 September, 2012 | 39 900 | 14 320 | 267 915 | 78 639 | 11 413 | 412 187 |
| 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, 2010 | 56 773 | 20 376 | 264 303 | 102 319 | 38 525 | 482 296 |
| Income in year 2011, |
||||||
| total | - | - | (525) | - | 13 643 | 13 118 |
| Transfer to reserves | - | - | - | 7 075 | (7 075) | - |
| Dividends for 2010 | - | - | - | - | (28 386) | (28 386) |
| Rounding | - | - | 1 | 1 | (1) | 1 |
| 30 September, 2011 | 56 773 | 20 376 | 263 779 | 109 395 | 16 706 | 467 029 |
| 31 December, 2011 | 56 773 | 20 376 | 263 381 | 109 395 | 41 730 | 491 655 |
| Income in year 2012, |
||||||
| total | - | - | 117 826 | - | 11 071 | 128 897 |
| Transfer to reserves | - | - | - | 2 499 | (2 499) | - |
| Dividends for 2011 | - | - | - | - | (34 064) | (34 064) |
| Rounding | - | - | 1 | (1) | 1 | 1 |
| 30 September, 2012 | 56 773 | 20 376 | 381 208 | 111 893 | 16 239 | 586 489 |
Notes to the financial statements
| 30.09.2012. | 30.09.2011. | 30.09.2012. | 30.09.2011. | ||
|---|---|---|---|---|---|
| LVL'000 | LVL'000 | EUR'000 | EUR'000 | ||
| 1 | INVENTORIES | ||||
| Materials and spare parts | |||||
| (at net realisable value) | 3 652 | 2 929 | 5 196 | 4 168 | |
| Gas and fuel (at cost) | 144 450 | 101 053 | 205 534 | 143 785 | |
| 148 102 | 103 982 | 210 730 | 147 953 | ||
| 2 | REVALUATION RESERVE | ||||
| At the beginning of the period Revaluation of property, plant and |
185 105 | 185 754 | 263 381 | 264 303 | |
| equipment Deferred income tax liability |
98 444 | 28 | 140 073 | 40 | |
| arising on the revaluation of property, plant and equipment Disposal of revalued property, |
(14 761) | - | (21 003) | - | |
| plant and equipment | (874) | (397) | (1 244) | (565) | |
| Rounding | 1 | - | 1 | 1 | |
| At the end of the period | 267 915 | 185 385 | 381 208 | 263 779 | |
| 3 | RETAINED EARNINGS | ||||
| At the beginning of the period Disposal of revalued property, |
29 329 | 27 076 | 41 730 | 38 525 | |
| plant and equipment | 874 | 397 | 1 244 | 565 | |
| Profit for the period | 6 907 | 9 192 | 9 827 | 13 078 | |
| Transfer to reserves | (1 756) | (4 972) | (2 499) | (7 075) | |
| Dividends for previous period | (23 940) | (19 950) | (34 064) | (28 386) | |
| Rounding | (1) | (1) | 1 | (1) | |
| At the end of the period | 11 413 | 11 742 | 16 239 | 16 706 | |
| 4 | REVENUE | ||||
| Sales per customers' groups are as follows: Income from natural gas sales to |
|||||
| industrial customers Income from natural gas sales to |
250 966 | 210 186 | 357 092 | 299 068 | |
| residential customers Income from transmission and |
30 108 | 26 168 | 42 840 | 37 234 | |
| storage of natural gas | 11 983 | 10 486 | 17 050 | 14 920 | |
| Other services | 487 | 321 | 693 | 456 | |
| 293 544 | 247 161 | 417 675 | 351 678 | ||
| 5 | COST OF SALES Purchase of natural gas |
230 577 | 182 059 | 328 081 | 259 047 |
| Salaries | 7 985 | 8 491 | 11 362 | 12 082 | |
| Social insurance contributions | 1 817 | 1 940 | 2 585 | 2 760 | |
| Life, health and pension insurance | 603 | 631 | 858 | 898 | |
| Materials and spare parts | 7 687 | 6 203 | 10 938 | 8 826 | |
| Depreciation and amortisation | 22 773 | 15 282 | 32 403 | 21 744 | |
| Other | 4 121 | 3 748 | 5 864 | 5 333 | |
| 275 563 | 218 354 | 392 091 | 310 690 |
6 ADMINISTRATIVE EXPENSES
| Salaries | 2 364 | 2 227 | 3 363 | 3 169 | |
|---|---|---|---|---|---|
| Social insurance contributions | 511 | 466 | 727 | 663 | |
| Life, health and pension insurance | 108 | 112 | 154 | 159 | |
| Maintenance and utilities | 495 | 515 | 704 | 733 | |
| Real estate tax | 569 | 492 | 810 | 700 | |
| Depreciation and amortisation | 440 | 389 | 626 | 554 | |
| Bank charges | 65 | 60 | 92 | 85 | |
| Provisions for impairment of bad | |||||
| and doubtful debts, net | (74) | 6 849 | (105) | 9 745 | |
| Other expenses | 882 | 734 | 1 255 | 1 044 | |
| 5 360 | 11 844 | 7 626 | 16 852 | ||
| 7 | OTHER INCOME | ||||
| Penalties from customers Income from contribution to |
911 | 942 | 1 296 | 1 340 | |
| financing of construction works | 442 | 429 | 629 | 610 | |
| Provisions for slow moving and | |||||
| obsolete inventories impairment | 126 | 70 | 179 | 100 | |
| Other income | 905 | 272 | 1 288 | 387 | |
| Income from increase in exchange | |||||
| rates, net | 1 440 | - | 2 049 | - | |
| 3 824 | 1 713 | 5 441 | 2 437 | ||
| 8 | OTHER EXPENSES | ||||
| Materials | 19 | 33 | 27 | 47 | |
| Salaries | 125 | 120 | 178 | 171 | |
| Social insurance contributions | 18 | 18 | 26 | 26 | |
| Depreciation and amortisation | 119 | 86 | 169 | 122 | |
| Sponsorship | 36 | 49 | 51 | 70 | |
| Loss from sale of fixed assets | 734 | 309 | 1 044 | 440 | |
| Loss from increase in exchange | |||||
| rates, net | - | 1 371 | - | 1 951 | |
| Other expense | 4 284 | 4 016 | 6 096 | 5 714 | |
| 5 335 | 6 002 | 7 591 | 8 541 | ||
| EXPENSES BY NATURE Purchase of natural gas Depreciation and amortisation Employee benefit expense Material and spare parts Net provisions for impaired receivables Other expenses |
230 577 23 332 13 531 7 706 (74) 11 186 |
182 059 15 757 14 005 6 236 6 849 11 294 |
328 081 33 198 19 253 10 965 (105) 15 916 |
381 208 22 420 19 928 8 873 9 745 16 070 |
|
| 286 258 | 236 200 | 407 308 | 458 244 |
9 FINANCE INCOME, NET
| Finance income | ||||
|---|---|---|---|---|
| - Interest income | 528 | 815 | 751 | 1 160 |
| 528 | 815 | 751 | 1 160 | |
| Finance expenses | ||||
| - Interest expenses | - | - | - | - |
| Finance income, net | 528 | 815 | 751 | 1 160 |