Latvijas Gaze

Earnings Release • May 27, 2011

Non-audited financial report of 3 months of 2011

Non-audited financial statement of 3 months of 2011

In 3 months of 2011, the Joint Stock Company “Latvijas Gāze” (hereinafter – LG) sold to the consumers 705 million nm3 of natural gas. Compared to the respective period of 2010, natural gas sales have decreased by 7 %, still being 13 % or 80 million nm3 above the volume planned in the budget of 2011.

The increase of natural gas consumption both among industrial customers and households in 3 months of 2011 compared to the budget of 2011 stems from the protractedly low air temperature.

The gas injection season at the Inčukalns Underground Gas Storage Facility (hereinafter – Inčukalns UGS) began on April 26, 2011. Upon starting natural gas injection, the reserves of active gas at the Inčukalns UGS were 41 million nm3.

Over 3 months of 2011, the consumers have been sold natural gas and provided services for LVL 146 million, which is by 15 % more than in the respective period of 2010 and by 9 % more than budgeted.

The rise of income over the respective period of 2010 has taken place because in the 1st quarter of 2011 the industrial and residential customers were applied differential natural gas sale end-user tariffs corresponding to a natural gas sale price, which was by 35 % higher than in the 1st quarter of 2010. Compared to 2010, the income grew in both the industrial and the household customers sector.

LG completed 3 months of 2011 with a profit of LVL 6.7 million, which is similar to that of the respective period of 2010.

Within the framework of the capital investment programme, LVL 2.9 million of investment funds were spent over 3 months of 2011, mostly on the renovation of gas transmission pipelines, the modernization of technological equipment and wells and the construction of new gas pipelines.

Vinsents Makaris

Phone + (371) 67 369 144

E-mail: IR@lg.lv