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Amber Grid Interim / Quarterly Report 2013
2263_rns_2013-10-31_b3c0f85c-dfea-4d14-bd8b-cb9b2cb0eb71.pdf
Interim / Quarterly Report
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Amber Grid
AB Amber Grid
Gudelių g. 49, LT-04224 Vilnius, Lithuania
www.ambergrid.lt
Phone +370 5 236 0855
Fax +370 5 236 0850
E-mail [email protected]
CONFIRMATION OF RESPONSIBLE PERSONS
30 October 2013 No 13-400-3
Following Art. 22 of the Law on Securities of the Republic of Lithuania and the Rules for the Drawing up and the Submission of Periodic and Additional Information approved by the Board of the Bank of Lithuania of 28 February 2013, we, Saulius Bilys, General Manager and Rimantas Šukys, Financial Director of AB Amber Grid, hereby confirm that to the best of our knowledge, the attached AB Amber Grid Company’s Condensed Financial Statements for the 30 September 2013 Prepared According to International Financial Reporting Standards as Adopted by the European Union, give a true and fair view of the assets, liabilities, financial position, profit or loss and cash flows of AB Amber Grid.
AB AMBER GRID
FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2013
PREPARED ACCORDING TO
INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EU
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of financial position
| Notes | As of 30 September 2013 (pre-audited) | As of 31 July 2013 (pre-audited) | |
|---|---|---|---|
| ASSETS | |||
| A. Non-current assets | 1,579,298 | 1,576,673 | |
| I. Intangible assets | 1,616 | 1,529 | |
| II. Property, plant and equipment | 1,577,226 | 1,574,672 | |
| II.1. Land | 387 | 387 | |
| II.2. Buildings and structures | 1,215,195 | 1,223,862 | |
| II.2.1. Buildings | 27,016 | 27,202 | |
| II.2.2. Transmission networks and related installations | 1,167,456 | 1,175,708 | |
| II.2.3. Distribution networks and related installations | 381 | 383 | |
| II.2.4. Other buildings and structures | 20,342 | 20,569 | |
| II.3. Machinery and equipment | 222,948 | 225,882 | |
| II.4. Vehicles | 5,198 | 4,996 | |
| II.5. Other equipment, tools and devices | 10,705 | 11,359 | |
| II.6. Other property, plant and equipment | 674 | 700 | |
| II.7. Construction in progress | 3 | 122,119 | 107,486 |
| III. Non-current financial assets | 456 | 472 | |
| III.1. Investment into subsidiary | - | - | |
| III.2. Investment into joint venture | 1 | 456 | 472 |
| III.3. Non-current accounts receivable | - | - | |
| B. Current assets | 140,386 | 119,123 | |
| I. Inventories and prepayments | 25,820 | 26,995 | |
| I.1. Inventories | 25,696 | 26,829 | |
| I.1.1. Raw materials, spare parts and other inventories | 5,773 | 5,744 | |
| Goods for resale (including natural gas) | 19,923 | 21,085 | |
| I.2. Prepayments | 124 | 166 | |
| II. Accounts receivable | 62,480 | 52,684 | |
| II.1. Trade receivables | 4 | 10,921 | 8,302 |
| II.2. Other receivables | 5 | 51,559 | 44,382 |
| III. Prepaid income tax | - | - | |
| IV. Other financial assets | 6 | 33,246 | 27,302 |
| V. Other current assets | - | - | |
| VI. Cash and cash equivalents | 18,840 | 12,142 | |
| Total assets | 1,719,684 | 1,695,796 |
(cont'd on the next page)
The accompanying notes are an integral part of these financial statements.
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of financial position (cont'd)
| Notes | As of 30 September 2013 (pre-audited) | As of 31 July 2013 (pre-audited) | ||
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| C. | Equity | 1,202,327 | 1,203,383 | |
| I. | Share capital | 178,382 | 178,382 | |
| II. | Reserves | 1,015,111 | 1,015,111 | |
| II.1. | Legal reserve | 17,838 | 17,838 | |
| II.2. | Other reserves | 997,273 | 997,273 | |
| III. | Retained earnings | 8,834 | 9,890 | |
| D. | Liabilities | 517,357 | 492,413 | |
| I. | Non-current liabilities | 395,696 | 392,271 | |
| I.1. | Non-current borrowings | 7 | 157,500 | 157,500 |
| I.2. | Grants (deferred revenue) | 127,378 | 122,053 | |
| I.3. | Non-current employee benefits | 1,133 | 1,133 | |
| I.4. | Deferred tax liability | 109,685 | 111,585 | |
| II. | Current liabilities | 121,661 | 100,142 | |
| II.1. | Current portion of non-current borrowings | 7 | 23,572 | 23,572 |
| II.2. | Trade payables | 9 | 14,454 | 8,528 |
| II.3. | Income tax payable | 258 | - | |
| II.4. | Payroll related liabilities | 3,006 | 1,129 | |
| II.5. | Other payables and current liabilities | 10 | 80,371 | 66,913 |
| Total equity and liabilities | 1,719,684 | 1,695,796 |
The accompanying notes are an integral part of these financial statements.
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Income statements
| Notes | 30 September 2013 (pre-audited) | ||
|---|---|---|---|
| I. | Revenue | 26,373 | |
| I.1. | Sales | 25,842 | |
| I.2. | Other income | 531 | |
| II. | Expenses | (28,697) | |
| II.1. | Cost of natural gas | (12,772) | |
| II.2. | Other expenses | (15,925) | |
| III. | Profit from operations | (2,324) | |
| IV. | Financial activity | (480) | |
| IV.1. | Income | 29 | |
| IV.2. | Expense | (509) | |
| V. | Profit before tax | (2,804) | |
| VI. | Income tax | 8 | 1,642 |
| VI.1. | Current period income tax | (258) | |
| VI.2. | Deferred income tax | 1,900 | |
| VII. | Net profit | (1,162) |
The accompanying notes are an integral part of these financial statements.
| General Manager | Saulius Bilys | 30 October 2013 | |
|---|---|---|---|
| Chief Accountant | Dzintra Tamulienė | 30 October 2013 |
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of comprehensive income
| | | 30 September 2013
(pre-audited) |
| --- | --- | --- |
| I. | Net profit/losses | (1,162) |
| II. | Total comprehensive income | (1,162) |
The accompanying notes are an integral part of these financial statements.
| General Manager | Saulius Bilys | 30 October 2013 |
|---|---|---|
| Chief Accountant | Dzintra Tamulienė | 30 October 2013 |
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of changes in equity
| Share capital | Legal reserve | Other reserves | Retained earnings | Total | |
|---|---|---|---|---|---|
| Balance as of 31 July 2013 (pre-audited) | 178,382 | 17,838 | 997,273 | 9,890* | 1,203,383 |
| Total comprehensive income | - | - | - | (1,056) | (1,056) |
| Net profit for the year | - | - | - | (1,056) | (1,056) |
| Balance as of 30 September 2013 (pre-audited) | 178,382 | 17,838 | 997,273 | 8,834 | 1,202,327 |
*The figure includes a loss of LTL 106 thousand incurred in June and July of 2013.
The accompanying notes are an integral part of these financial statements.
| General Manager | Saulius Bilys | 30 October 2013 |
|---|---|---|
| Chief Accountant | Dzintra Tamulienė | 30 October 2013 |
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of cash flows
| 30 September 2013 (pre-audited) | ||
|---|---|---|
| I. | Cash flows from (to) operating activities | |
| I.1. | Net profit | (1,162) |
| Adjustments of non-cash items and other corrections: | ||
| I.2. | Depreciation and amortisation | 12,772 |
| I.3. | Loss (gain) on property, plant and equipment, doubtful trade accounts receivable and inventories write-off and disposal | 1 |
| I.4. | Impairment losses (reversal of impairment) for property, plant and equipment, financial assets, allowance for doubtful trade accounts receivable and inventories | (167) |
| I.5. | Income tax expenses | (1,642) |
| I.6. | Interest (income) | (1) |
| I.7. | Interest expenses | 493 |
| I.8. | (Amortisation) of the grants (deferred revenue) | (524) |
| I.9. | Elimination of the other investing activity results | - |
| I.10. | Elimination of other non-cash items | 10,103 |
| 19,873 | ||
| Changes in working capital: | ||
| I.11. | Decrease (increase) in inventories | 1.268 |
| I.12. | Decrease (increase) in trade accounts receivable | (2,589) |
| I.13. | Decrease (increase) in other accounts receivable and prepayments | (6,851) |
| I.14. | Increase (decrease) in trade accounts payable | 3,560 |
| I.15. | Increase (decrease) in other accounts payable and other current liabilities | 5,306 |
| I.16. | (Increase) decrease of other financial assets | (5,944) |
| I.17. | Income tax (paid) | - |
| Total changes in working capital | (5.250) | |
| Net cash flows from operating activities | 14,623 | |
| II. | Cash flows from (to) investing activities | |
| II.1. | (Acquisitions) of property, plant and equipment and intangible assets | (13,030) |
| II.2. | Proceeds from sales of property, plant and equipment | - |
| II.3. | Decrease (increase) in term deposits | - |
| II.4. | Interest received | 1 |
| II.5. | Disposal (acquisitions) of other short term investments | - |
| Net cash flows (to) investing activities | (13,029) |
The accompanying notes are an integral part of these financial statements. (cont'd on the next page)
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Statements of cash flows (cont'd)
| | | 30 September 2013
(pre-audited) |
| --- | --- | --- |
| III. Cash flows from (to) financing activities | | |
| III.1. | Dividends (paid) | - |
| III.2. | Grants received | 5,565 |
| III.3. | Interest (paid) | (461) |
| | Net cash flows from (to) financing activities | 5,104 |
| IV. | Net increase (decrease) in cash and cash equivalents | 6,698 |
| V. | Cash and cash equivalents at the beginning of the period | 12,142 |
| VI. | Cash and cash equivalents at the end of the period | 18,840 |
The accompanying notes are an integral part of these financial statements.
| General Manager | Saulius Bilys | 30 October 2013 |
|---|---|---|
| Chief Accountant | Dzintra Tamulienė | 30 October 2013 |
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Notes to the financial statements
1 General information
AB Amber Grid (hereinafter – the Company) was incorporated on 25 June 2013 through a spin-off from AB Lietuvos Dujos of the natural gas transmission activity. On 18 July 2013, the National Control Commission for Prices and Energy (hereinafter – the NCCPE) issued in respect of the Company an interim natural gas transmission operator’s licence effective from 1 August 2013. On 2 August 2013, AB Lietuvos Dujos by a Transfer and Acceptance Deed transferred to AB Amber Grid the assets rights and obligations attributed to the gas transmission activity as of 31 July 2013.
As of 30 September 2013, the Company’s shareholders were as follows:
| Number of shares held | Ownership share (percent) | |
|---|---|---|
| E.ON Ruhrgas International GmbH | 69,416,233 | 38.9 |
| OAO Gazprom | 66,112,761 | 37.1 |
| Ministry of Energy of the Republic of Lithuania | 31,575,724 | 17.7 |
| Other shareholders | 11,277,796 | 6.3 |
| 178,382,514 | 100.0 |
The Company’s share capital amounts to LTL 178,382,514, divided into 178,382,514 ordinary registered shares with par value of one LTL each.
Since 1 August 2013, the Company’s ordinary registered shares have been listed on the Secondary trading list of NASDAQ OMX Vilnius.
The Company’s investment into LIAB GET Baltic, a joint venture co-owned with AB Lietuvos Dujos and the Finnish gas company Gasum Oy, in the Company’s financial statements as of 30 September 2013 was accounted for using the equity method. The condensed financial statements as of 30 September 2013, prepared by LIAB GET Baltic in accordance with International Financial Reporting Standards (IFRS), were not audited.
2 Accounting principles
The Company’s condensed financial statements as of 30 September 2013 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting.
On 12 June 2012, the Seimas of the Republic of Lithuania passed the Law on the Liquefied Natural Gas Terminal (hereinafter referred to as "the LNGT"), setting forth that the installation and operation of the LNGT, including the infrastructure and the connector, may be co-financed with a mark-up imposed on the natural gas transmission tariff. Accordingly, on 9 October 2012, the NCCPE adopted Resolution No. O3-294 "On the Adoption of Procedure for the Administration of Funds to Finance in Part or in Full the Costs Related to the Installation and Operation of the Liquefied Natural Gas Terminal, Including Infrastructure and Connector thereof", setting forth a procedure for the administration of the aforesaid funds. On 28 September 2012, the NCCPE by its Resolution No. O3-275 "On Amending the National Control Commission for Prices and Energy Resolution No. O3-106 on the Natural Gas Transmission and Distribution Price Cap Calculation Methodology as of 8 August 2008" set forth that funds required to compensate in full or in part for the costs incurred in relation to the installation of the LNGT, including the infrastructure and connector thereof, by a special NCCPE decision to that effect may be imposed as a complementary and integral component of the natural gas transmission price cap – an LNGT mark-up. By its Resolution No. O3-330 as of 26 October 2012 the NCCPE set the LNGT mark-up amount for the year 2013: LTL 37.53 per thousand cubic meters.
Since 1 January 2013, the Company, in implementation of the aforesaid legal provisions, have been collecting and administering the aforesaid LNGT funds. In the collection and administration of the LNGT funds, the Company act only as intermediaries that are performing this function for and on behalf of the State and this activity does not generate any revenue / profit in the process of the ordinary activities of the Company. The LNGT funds, which are collected from the payers and transferred to the beneficiaries (to the company that is implementing the LNGT project or the LNGT operator) are not considered to be either the Company’s revenue / expense items, and are accounted for as other receivables / other payables. The LNGT funds amount allocated to cover the LNGT fund administration costs are considered to be the Company’s revenue and are accounted for as a gas transmission activity item.
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
3 Construction in progress
Major objects of construction in progress of the Company as of 30 September 2013 and 31 July 2013 were as follows:
Object
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| Construction of the Jurbarkas – Klaipėda gas transmission pipeline: | 110,730 | 98,984 |
| Construction of gas transmission pipeline from the branch to gas distribution station (hereinafter – GDS) in Tauragė to the branch to GDS in Šilutė | 58,763 | 54,152 |
| Construction of gas transmission pipeline from the branch to GDS in Šilutė to the branch to GDS-2 in Klaipėda, the branch to GDS-2 in Klaipėda and GDS-2 in Klaipėda | 51,967 | 44,832 |
| Acquisition of container-type GDS | 4,654 | 3,988 |
| Other | 6,735 | 4,514 |
| 122,119 | 107,486 |
4 Trade receivables
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| Receivables from gas transmission system users | 11,023 | 8,441 |
| Other trade receivables | 6 | - |
| Less: allowance for trade receivables | (108) | (139) |
| 10,921 | 8,302 |
The Company's receivables from the users of the system for natural gas transmission as of 30 September 2013 increased because of the two new system users.
5 Other receivables
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| LNGT funds receivable (administered by the Company) | 45,547 | 38,657 |
| Other receivables | 6,012 | 5,725 |
| Less: allowance for other receivables | - | - |
| 51,559 | 44,382 |
6 Other financial assets
The Company's Other financial assets as of 30 September 2013 consisted of the cash payable to the LNGT beneficiaries that is kept in a separate LNGT funds bank account that was selected and opened in compliance with respective legal provisions.
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
7 Loans
As at 30 September 2013, the loan amount granted to the Company according the long-term financial instrument agreement with Swedbank AB of 22 October 2012 stood at LTL 180 million (EUR 52.1 million).
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| Long-term loans | ||
| Loans from credit institutions of Lithuania | 157.500 | 157.500 |
| Short-term loans | ||
| Current portion of long-term loans | 23.572 | 23.572 |
| 181.072 | 181.072 |
Company's long-term debt repayment terms:
| 30 September | 30 September | |||
|---|---|---|---|---|
| 2013 (pre-audited) | 31 July 2013 (pre-audited) | 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
| Loans with a fixed interest rate | Loans with a fixed interest rate | Loans with floating interest rate | Loans with floating interest rate | |
| 2013 | 1.072 | 1.072 | - | - |
| 2014 | - | - | 45.000 | 45.000 |
| 2015 | - | - | 45.000 | 45.000 |
| 2016 | - | - | 45.000 | 45.000 |
| 2017 | - | - | 45.000 | 45.000 |
| 1.072 | 1.072 | 180.000 | 180.000 |
The applicable interest rate is close to the effective interest rates. As of 30 September 2013, the weighted average of the annual interest rates of the Company's loans stood at 1.536 percent.
The calculations were based on the official exchange rate of the Bank of Lithuania as of 30 September 2013:1 EUR = LTL 3.4528.
All the Company's loans are in euros.
There are no third-party guarantees and the Company's assets pledged as collateral for bank loans.
8 Income tax
The corporate income tax rate used to tax the Company's profits of 2013: 15 percent. The income tax expense for the period comprises current income tax and deferred tax.
9 Trade payables
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| Payables to suppliers in according to the Construction programme | 8,239 | 6,788 |
| Payables to suppliers according to the Reconstruction programme | 1,967 | 1,051 |
| Payables to suppliers of non-current assets repairs | 2,072 | - |
| Other | 2,176 | 689 |
| 14,454 | 8,528 |
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
10 Other payables and current liabilities
| 30 September 2013 (pre-audited) | 31 July 2013 (pre-audited) | |
|---|---|---|
| LNGT funds payable administered by the Company | 33,223 | 27,302 |
| Accrued LNGT funds administered by the Company * | 43,719 | 37,625 |
| VAT payable | 1,526 | - |
| Other payables | 1,903 | 1,986 |
| 80,371 | 66,913 |
The Company's Other payables and current liabilities as of 30 September 2013 saw a significant increase, which mainly came as a result of the LNGT funds payable administered by the Company, the accrued LNGT funds administered by the Company and the increase in the VAT payable.
- The accrued LNGT funds administered by the Company are attributed to the LNGT funds payable account only when the gas transmission system users pay them to the Company.
11 Commitments and contingencies
Legal disputes
According to the Republic of Lithuania Law on the Liquefied Natural Gas Terminal and applicable resolutions adopted by the NCCPE, all the natural gas system users that transport natural gas via the gas transmission system, when settling accounts for gas transmission services rendered to them must pay an additional tariff mark-up constituting an integral part of the overall natural gas transmission tariff – an LNGT mark-up (also referred to as the LNGT funds). In accordance with the statutory provisions, the LNGT funds shall be administered by the natural gas transmission system operator. Before 31 July 2013, the functions of the administrator of the LNGT funds were performed by AB Lietuvos Dujos. Following the NCCPE decision on the withdrawal of the AB Lietuvos Dujos natural gas transmission operator's license and on the issuance of a fixed-term gas transmission operator's license to AB Amber Grid, from 1 August 2013, it is AB Amber Grid that must collect the LNGT funds from the natural gas system users (through the application of the LNGT mark-up). In view of the fact that AB Achema, being a user of the Gas Transmission System, systematically failed to pay the statutory LNGT mark-up, AB Lietuvos Dujos, being the administrator of the LNGT funds, on 12 April 2013, filed a lawsuit with the Kaunas District Court regarding the payment of the LNGT funds, order to pay a default interest and the obligation to perform the contract. On 1 August 2013, by a Transfer-Acceptance Deed AB Lietuvos Dujos transferred the aforesaid case to AB Amber Grid. The outcome of the case will have no financial impact on the Company, because when the Court grants AB Amber Grid's claim, the amount awarded by the Court will be transferred to the beneficiary of the LNGT mark-up funds.
On 19 November 2012, AB Achema appealed to the Vilnius Regional Administrative Court requesting revocation of items 3.1 and 4 of Resolution No. 03-317 of 19 October 2012 "On fixing the fund amount to compensate, in full or in part, for the costs of the construction and operation of the Liquefied Natural Gas Terminal, its infrastructure and connector in the year 2013" and requesting repeal of item 2 of the NCCPE Resolution No. 03-330 of 26 October 2012 "On the adjustment of AB Lietuvos Dujos natural gas transmission and distribution price caps and introduction of a complementary and inseparable component of the natural gas transmission price cap (the LNGT mark-up) for the year 2013". On 29 January 2013, by a court order AB Lietuvos Dujos was involved into the judicial dispute as an interested third party. On 1 August 2013, by a Transfer-Acceptance Deed the aforesaid case was transferred by AB Lietuvos Dujos to AB Amber Grid.
On 10 July 2013, AB Lietuvos Dujos received a notification by the Panevėžys District Court that on 3 July 2013 the Court issued a ruling to apply to a Specialized Judicial Panel for Jurisdiction Disputes requesting opinion thereof whether the lawsuit of the plaintiff, a prosecutor of the Public Interest Defense Department of the Panevėžys District Prosecutor's Office against the defendants, the Ministry of Economy of the Republic of Lithuania, AB Lietuvos Dujos, the third parties –the Lithuanian Road Administration under the Ministry of Transport and Communications of the
AB AMBER GRID, company code 303090867, Gudelių g. 49, Vilnius, Lithuania
COMPANY'S CONDENSED FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless stated otherwise)
Commitments and contingencies (cont'd)
Republic of Lithuania, and VĮ Panevėžio Regiono Keliai – regarding the revocation of the Minister of Economy's orders in the part of the transfer of a road of national importance, application of restitution is attributable to the general competence courts or to the administrative court. On 1 August 2013, by a Transfer-Acceptance Deed AB Lietuvos Dujos transferred the aforesaid case to AB Amber Grid. By the court order of 3 October 2013 AB Amber Grid was ordered to submit a response. The outcome of the case may have a financial impact on the Company, because should the court grant the prosecutor's claim, the court would order a restitution and AB Amber Grid would be obliged to return to the state ownership a 6,534-square meter long section of a road, and the Ministry of Economy would be obliged pay a monetary compensation to AB Amber Grid in the amount of the value of the road in question.
12 Related party transactions
The parties are considered related when one party has the possibility to control the other one or have significant influence over the other party in making financial and operating decisions.
The related parties of the Company, transaction amounts and debts as of 30 September 2013 were as follows:
- E.ON Ruhrgas International GmbH (one of the major shareholders of the Company);
- OAO Gazprom (one of the major shareholders of the Company);
- Ministry of Energy of the Republic of Lithuania (one of the major shareholders of the Company);
- UAB GET Baltic (joint venture where the Company has an interest);
- AB Lietuvos Dujos (the same shareholders);
The tables below present the Company's balances and transactions with related parties as of 30 September 2013.
| As of 30 September 2013 (pre-audited) | Purchases | Sales | Accounts receivable | Accounts payable |
|---|---|---|---|---|
| OAO Gazprom | 4.285 | 2.298 | - | |
| AB Lietuvos Dujos | 2.814 | 4.937 | 2.166 | 1.050 |
| of which the LNGT funds | 1.080 | 694 | ||
| UAB GET Baltic | 1 | 221 | - | |
| 2.815 | 9.443 | 4.464 | 1.050 |
There were no receivables from related parties and payables to them, for which any guarantees would be provided for or received. As at 30 September 2013, the Company had not accounted for any allowance for receivables from related parties.