AI assistant
Amber Grid — Interim / Quarterly Report 2024
Nov 8, 2024
2263_rns_2024-11-08_71ac4dff-2baa-43ff-93f2-7fa74dfaf80b.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Kvalifikace elektronické poradky
RASA BALTARAGIENĚ
2024.11.08 13:55:58 GMT+Z
Předmětní: Původní
Kvalifikace elektronické poradky
GYTIS FOMINAS
2024.11.08 14:01:14 GMT+Z
Předmětní: Původní
Kvalifikace elektronické poradky
NEMUNAS BIKNIUS
2024.11.08 14:33:27 GMT+Z
Předmětní: Původní
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné k zobrazení
Pojistné
Pojistné
Pojistné
Pojistné
Pojistné
Poj
AB AMBER GRID
CONDENSED INTERIM CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
AS ADOPTED BY THE EUROPEAN UNION
Amber Grid
CONFIRMATION OF RESPONSIBLE PERSONS
8 November 2024
Following the Law on Securities of the Republic of Lithuania and the Rules on Information Disclosure of the Bank of Lithuania, we, Nemunas Biknius, Chief Executive Officer of AB Amber Grid, Gytis Fominas, Chief Financial Officer of AB Amber Grid, and Rasa Baltaragienė, Head of accounting of AB Amber Grid, hereby confirm that, to the best of our knowledge, the attached AB Amber Grid unaudited condensed interim consolidated and separate financial statements for the period of nine months ended 30 September 2024 are prepared in accordance with International Financial Reporting Standards, adopted by the European Union, present a true and fair view of AB Amber Grid assets, liabilities, financial position, profit and cash flows.
| Chief Executive Officer | Nemunas Biknius
(The document is signed with a qualified electronic signature) |
| --- | --- |
| Chief Financial Officer | Gytis Fominas
(The document is signed with a qualified electronic signature) |
| Head of accounting | Rasa Baltaragienė
(The document is signed with a qualified electronic signature) |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Consolidated and separate statement of financial position
(All amounts are in EUR '000 unless otherwise stated)
| Notes | Company^{1)} | ||
|---|---|---|---|
| 30 September 2024 | 31 December 2023 | ||
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 5 | 2,390 | 2,559 |
| Property, plant and equipment | 6 | 278,097 | 284,353 |
| Right-of-use assets | 8 | 4,511 | 3,100 |
| Investments in subsidiaries and associates | 7 | 3,438 | 3,644 |
| Derivatives | 9 | 1,205 | 1,226 |
| Deferred tax assets | 3,609 | 4,086 | |
| Total non-current assets | 293,250 | 298,968 | |
| Current assets | |||
| Inventories | 10 | 4,659 | 4,874 |
| Prepayments | 607 | 794 | |
| Trade receivables | 11 | 7,369 | 9,030 |
| Other receivables | 12 | 11,055 | 19,074 |
| Other financial assets | 13 | 6,709 | 528 |
| Cash and cash equivalents | 14 | 5 | 121 |
| Total current assets | 30,404 | 34,421 | |
| Total assets | 323,654 | 333,389 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Issued capital | 15 | 51,731 | 51,731 |
| Legal reserve | 17 | 5,173 | 5,173 |
| Other reserves | 17 | 403 | 114,430 |
| Revaluation reserve | 17 | 2,575 | 2,767 |
| Retained earnings (deficit) | 113,140 | 13,425 | |
| Total equity | 173,022 | 187,526 | |
| Non-current liabilities | |||
| Non-current borrowings | 19 | 56,181 | 60,962 |
| Lease liabilities | 20 | 3,733 | 2,933 |
| Contract liabilities | 1,479 | 1,530 | |
| Provisions | 23 | 667 | 667 |
| Total non-current liabilities | 62,060 | 66,092 | |
| Current liabilities | |||
| Current borrowings | 19 | 29,752 | 25,435 |
| Current portion of non-current borrowings | 19 | 5,649 | 5,649 |
| Current portion of lease liabilities | 20 | 971 | 317 |
| Trade payables | 21 | 2,452 | 5,335 |
| Prepayments received and contract liabilities | 22 | 957 | 622 |
| Income tax liability | 492 | - | |
| Other payables and current liabilities | 23 | 47,836 | 41,950 |
| Provisions | 463 | 463 | |
| Total current liabilities | 88,572 | 79,771 | |
| Total equity and liabilities | 323,654 | 333,389 |
1) Due to the equity method applied to the investment in an associate (after loss of control) in the consolidated and separate financial statements for 2023 according to Company's accounting policy, there is an overlap between the economic interest (group) and the Company's figures for 2024, and therefore only the Company's figures are presented.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber
Grid
Consolidated and separate statement of comprehensive income
(All amounts are in EUR '000 unless otherwise stated)
| Notes | Company1) | Group | ||
|---|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | ||
| Revenue | 24 | 51,437 | 60,344 | 61,236 |
| Other income | 25 | 184 | 399 | 399 |
| Total revenue and other income | 51,621 | 60,743 | 61,635 | |
| Purchase of natural gas and other services | 26 | (11,082) | (22,057) | (22,057) |
| Payroll and related expenses | (10,652) | (9,976) | (10,232) | |
| Purchase of repair and maintenance services | (1,632) | (1,971) | (1,971) | |
| Other expenses | 27 | (9,292) | (8,658) | (8,726) |
| Total expenses: | (32,658) | (42,662) | (42,986) | |
| EBITDA | 18,963 | 18,081 | 18,649 | |
| Dividend income | - | 542 | - | |
| Result on transfer of control and revaluation of associates | 7 | - | 9,076 | 8,419 |
| Gain (loss) on derivatives | 166 | - | - | |
| Depreciation and amortization | 5,6,8 | (11,213) | (9,383) | (9,468) |
| Revaluation of property, plant and equipment | - | - | - | |
| Impairment and write-down losses on tangible fixed assets | (1) | (25) | (25) | |
| Operating profit (loss) (EBIT) | 7,915 | 18,291 | 17,575 | |
| Finance income | 130 | 11 | 456 | |
| Finance costs | (1,764) | (1,303) | (1,304) | |
| Finance costs at fair value | 28 | (1,634) | (1,292) | (848) |
| Share of net profit of associates | 7 | 358 | - | - |
| Profit/(loss) before income tax | 6,639 | 16,999 | 16,727 | |
| Income tax | - | - | - | |
| Current year income tax expenses | (491) | - | (140) | |
| Deferred tax benefit (expenses) | (477) | (1,171) | (1,171) | |
| Total income tax | 29 | (968) | (1,171) | (1,311) |
| Net profit/(loss) | 5,671 | 15,828 | 15,416 | |
| Other comprehensive income | - | - | - | |
| Total comprehensive income for the period | 5,671 | 15,828 | 15,416 | |
| Basic and diluted earnings /(loss) per share (EUR) | 30 | 0.03 | 0.09 | 0.09 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber
Grid
Consolidated and separate statement of comprehensive income (continued)
(All amounts are in EUR '000 unless otherwise stated)
| Notes | Company1) | Group | ||
|---|---|---|---|---|
| For the period of three months ended 30 September 2024 | For the period of three months ended 30 September 2023 | For the period of three months ended 30 September 2023 | ||
| Revenue | 24 | 16,479 | 17,938 | 17,938 |
| Other income | 25 | 94 | 100 | 100 |
| Total revenue and other income | 16,573 | 18,038 | 18,038 | |
| Purchase of natural gas and other services | 26 | (2,654) | (4,154) | (4,154) |
| Payroll and related expenses | (3,118) | (2,881) | (2,881) | |
| Purchase of repair and maintenance services | (598) | (604) | (604) | |
| Other expenses | 27 | (3,192) | (3,016) | (3,016) |
| Total expenses: | (9,562) | (10,655) | (10,655) | |
| EBITDA | 7,011 | 7,383 | 7,383 | |
| Gain (loss) on derivatives | (73) | - | - | |
| Depreciation and amortization | 5,6,8 | (3,783) | (3,093) | (3,093) |
| Impairment and write-down losses on tangible fixed assets | - | (25) | (25) | |
| Operating profit (loss) (EBIT) | 3,155 | 4,265 | 4,265 | |
| Finance income | 61 | 7 | 7 | |
| Finance costs | (638) | (481) | (481) | |
| Finance costs at fair value | 28 | (577) | (474) | (474) |
| Share of net profit of associates | 7 | 75 | - | - |
| Profit/(loss) before income tax | 2,653 | 3,791 | 3,791 | |
| Income tax | ||||
| Current year income tax expenses | (364) | - | - | |
| Deferred tax benefit (expenses) | (65) | (540) | (540) | |
| Total income tax | 29 | (429) | (540) | (540) |
| Net profit/(loss) | 2,224 | 3,251 | 3,251 | |
| Other comprehensive income | ||||
| Total comprehensive income for the period | 2,224 | 3,251 | 3,251 | |
| Basic and diluted earnings /(loss) per share (EUR) | 30 | 0.01 | 0.02 | 0.02 |
1) Due to the equity method applied to the investment in an associate (after loss of control) in the consolidated and separate financial statements for 2023 according to Company's accounting policy, there is an overlap between the economic interest (group) and the Company's figures for 2024, and therefore only the Company's figures are presented.
The accompanying notes form an integral part of these financial statements.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Consolidated and separate statement of changes in equity
(All amounts are in EUR '000 unless otherwise stated)
| Balance as at 31 December 2022 | Company^{1)} | |||||
|---|---|---|---|---|---|---|
| Issued capital | Legal reserve | Other reserves | Revaluation reserve | Retained earnings | Total | |
| 51,731 | 5,173 | 110,768 | - | 15,720 | 183,392 | |
| Reserves established | - | - | 3,662 | - | (3,662) | - |
| Dividends declared | - | - | - | - | (12,058) | (12,058) |
| Total transactions with owners | - | - | 3,662 | - | (15,720) | (12,058) |
| Net profit (loss) for the year | - | - | - | - | 15,828 | 15,828 |
| Other comprehensive income | - | - | - | - | - | - |
| Total comprehensive income /(loss) for the period | - | - | - | - | 15,828 | 15,828 |
| Balance as at 30 September 2023 | 51,731 | 5,173 | 114,430 | - | 15,828 | 187,162 |
| Net profit (loss) for the year | - | - | - | - | (2,403) | (2,403) |
| Other comprehensive income | - | - | - | 2,767 | - | 2,767 |
| Total comprehensive income /(loss) for the period | - | - | - | 2,767 | (2,403) | 364 |
| Balance as at 31 December 2023 | 51,731 | 5,173 | 114,430 | 2,767 | 13,425 | 187,526 |
| Depreciation of revaluation reserve and write-offs | - | - | - | (192) | 192 | - |
| Reserves established | - | - | (114,027) | - | 114,027 | - |
| Dividends declared | - | - | - | - | (20,175) | (20,175) |
| Total transactions with owners | - | - | (114,027) | (192) | 94,044 | (20,175) |
| Net profit (loss) for the year | - | - | - | - | 5,671 | 5,671 |
| Other comprehensive income | - | - | - | - | - | - |
| Total comprehensive income/(loss) for the period | - | - | - | - | 5,671 | 5,671 |
| Balance as at 30 September 2024 | 51,731 | 5,173 | 403 | 2,575 | 113,140 | 173,022 |
1) Due to the equity method applied to the investment in an associate (after loss of control) in the consolidated and separate financial statements for 2023 according to Company's accounting policy, there is an overlap between the economic interest (group) and the Company's figures for 2024, and therefore only the Company's figures are presented.
The accompanying notes form an integral part of these financial statements.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber
Grid
Consolidated and separate statement of cash flows
(All amounts are in EUR '000 unless otherwise stated)
| Notes | Company^{1)} | Group | ||
|---|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | ||
| I. Cash flows from operating activities | ||||
| I.1. Net profit/(loss) | 5,671 | 15,828 | 15,416 | |
| Adjustments for non-cash items and other corrections: | ||||
| I.2. Depreciation and amortisation | 5,6,8 | 11,213 | 9,383 | 9,468 |
| I.3. Revaluation of property, plant and equipment | - | - | - | |
| I.4. Loss on impairment and gain/loss on disposal/write-off of property, plant and equipment | 1 | 14 | 14 | |
| I.5. Gain/loss on impairment and write-off of inventories, trade receivables | (115) | (44) | (44) | |
| I.6. Income tax expenses (benefit) | 29 | 968 | 1,171 | 1,311 |
| I.7. Grants recognised as income | (4) | (42) | (42) | |
| I.8. Increase (decrease) in provisions | - | - | - | |
| I.9. Elimination of other non-cash items | - | - | 3 | |
| Elimination of results of financing and investing activities: | ||||
| I.10. Dividend income | - | (542) | - | |
| I.11. Result on loss of control and revaluation of associate | 7 | - | (9,076) | (8,419) |
| I.12. Gain/loss on derivatives | (166) | - | - | |
| I.13. Share of results of associate | 7 | (358) | - | - |
| I.14. Total finance costs, net | 28 | 1,634 | 1,292 | 848 |
| Changes in working capital: | ||||
| I.15. (Increase) decrease in inventories, prepayments and other current assets | 440 | 8,579 | 8,585 | |
| I.16. (Increase) decrease in trade receivables | 1,670 | 11,051 | 20,249 | |
| I.17. (Increase) decrease in other receivables | 941 | 2,873 | 487 | |
| I.18. (Decrease) increase in trade payables | (2,284) | (7,762) | (54,494) | |
| I.19. (Decrease) increase in other payables and current liabilities | 6,349 | 291 | (115,441) | |
| I.20. (Increase) decrease in other financial assets | (96) | (139) | 155,526 | |
| I.21. Income tax received (paid) | - | - | (95) | |
| Net cash flows from operating activities | 25,864 | 32,877 | 33,372 |
The accompanying notes form an integral part of these financial statements.
(cont'd on the next page)
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Consolidated and separate statement of cash flows (continued)
(All amounts are in EUR '000 unless otherwise stated)
| Notes | Company1) | Group | ||
|---|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | ||
| II. Cash flows from investing activities | ||||
| II.1. (Acquisition) of property, plant and equipment and intangible assets | (4,484) | (25,664) | (25,672) | |
| II.2. Proceeds from disposal of property, plant and equipment | 2 | 13 | 13 | |
| II.3. Grants received | 18 | 6,939 | 9,279 | 9,279 |
| II.4. Sale (acquisition) of subsidiaries (associates) | - | 6,500 | 5,307 | |
| II.5. Loans granted (repayments received) | - | - | - | |
| II.6. Interest received | 111 | - | 445 | |
| II.7. Dividends received | 564 | 542 | - | |
| II.8. Decrease (increase) in deposits | 13 | (6,085) | - | - |
| Net cash flows used in investing activities | (2,953) | (9,330) | (10,628) | |
| III. Cash flows from financing activities | ||||
| III.1. Dividends (paid) | (20,167) | (12,051) | (12,051) | |
| III.2. Proceeds from borrowings | - | - | - | |
| III.3. (Repayments) of borrowings | (4,780) | (23,912) | (23,912) | |
| III.4. Change in overdraft | 4,498 | 14,214 | 14,214 | |
| III.5. Interest (paid) | (1,939) | (1,430) | (1,430) | |
| III.6. Coverage of lease liability | (633) | (382) | (395) | |
| III.7. Other cash flows from financing activities | (6) | 4 | 3 | |
| Cash flows from/used in financing activities | (23,027) | (23,557) | (23,571) | |
| IV. Change in cash and cash equivalents included in disposal group | - | - | 817 | |
| V. Net increase (decrease) in cash and cash equivalents | (116) | (10) | (10) | |
| VI. Cash and cash equivalents at the beginning of the year | 14 | 121 | 21 | 21 |
| VII. Cash and cash equivalents at the end of the period | 14 | 5 | 11 | 11 |
1) Due to the equity method applied to the investment in an associate (after loss of control) in the consolidated and separate financial statements for 2023 according to Company's accounting policy, there is an overlap between the economic interest (group) and the Company's figures for 2024, and therefore only the Company's figures are presented.
The accompanying notes form an integral part of these financial statements.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Notes to the consolidated and separate financial statements
(All amounts are in EUR '000 unless otherwise stated)
1. General information
Amber Grid AB (hereinafter the "Company") is a public limited liability company registered in the Republic of Lithuania. Its registered office address is as follows:
Laisvès pr. 10,
LT – 04215, Vilnius,
Lithuania.
Amber Grid AB was registered on 25 June 2013 as a result of unbundling of natural gas transmission activity (including assets, rights and obligations attributed thereto) from Lietuvos Dujos AB. The Company has been actively operating since 1 August 2013. After obtaining a favourable decision from the European Commission, on 10 April 2015 the National Control Commission for Prices and Energy (the National Energy Regulatory Council (NERC) as from 1 July 2019) granted to the Company an energy operator licence No L2-3 (GDP) to engage in natural gas transmission activities for indefinite term in the territory of Lithuania.
Acting as a natural gas transmission system operator, the Company provides the following services to the system users, other operators and gas market participants:
- natural gas transmission in the territory of Lithuania;
- natural gas flow balancing within the transmission system;
- administration of funds intended to compensate the construction and fixed operating expenses of the liquefied natural gas (LNG) terminal, its infrastructure, connector, and the reasonable supply costs of the required quantity of liquefied natural gas incurred by the designated supplier;
- administration of the register of guarantees of origin of gas produced from renewable energy sources.
Since 1 August 2013, the Company's shares have been traded on stock exchange and have been quoted on the Baltic Secondary List of NASDAQ Vilnius. (ISIN – LT0000128696, LEI code 097900BGMP0000061061, ticker AMG1L).
As at 30 September 2024 and 31 December 2023, the Company's shareholders were as follows:
| Number of shares held | Ownership interest, (%) | |
|---|---|---|
| EPSO-G UAB (company code 302826889, Laisvès ave. 10, Vilnius) | 172.279.125 | 96.58 |
| Other shareholders | 6.103.389 | 3.42 |
| 178.382.514 | 100 |
EPSO-G UAB (hereinafter "EPSO-G") is a state-owned group of energy transmission and exchange companies (www.epsog.lt). The rights and duties of the sole shareholder of the holding company EPSO-G UAB are exercised by the Ministry of Energy of the Republic of Lithuania (www.enmin.lt).
The consolidated and separate financial statements disclose the combined financial position and results of operations of Amber Grid AB (hereinafter - the "Company") and the Group consisting of Amber Grid AB and its subsidiary GET Baltic UAB (hereinafter - the "Group") up to the date of the change of control (31 May 2023).
Information on the shareholding of GET Baltic UAB (hereinafter – “GET Baltic”) as at 30 September 2024 and 31 December 2023 is presented below:
| Company name | Company's registered office | Shareholding | ||
|---|---|---|---|---|
| As at 30 September 2024 | As at 31 December 2023 | Profile of activities | ||
| GET Baltic UAB | Geležinio Vilko st. 18A, LT-08104 Vilnius, the Republic of Lithuania | 34% | 34% | Licensed activities of natural gas market operator trading natural gas short-term and long-term products. |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
As at 30 September 2024 and 31 December 2023, the share capital of GET Baltic amounted to EUR 580,450, and it was divided into 3,055,000 shares with a par value of EUR 0.19 each.
On 31 May 2023, upon sale of 66% shares in GET Baltic, the Company lost control in GET Baltic. The retained investment in GET Baltic is accounted for as investment in associate.
As at 30 September 2024 the average number of employees on payroll at the Company was 344 (31 December 2023: 340).
2. Summary of material accounting policies
The principal accounting policies applied in the preparation of the Company's and the Group's financial statements for the year ended 30 September 2024 are set out below:
2.1 Basis of preparation
These condensed interim consolidated and separate financial statements, including the statement of financial position, and statement of comprehensive income, cash flow statement and the statement of changes in equity for the period of nine months ended 30 September 2024 have not been audited. The consolidated and separate financial statements for the period ended 31 December 2023 have been audited and prepared in accordance with International Financial Reporting Standards (IFRS) as adopted in European Union and are in compliance thereof.
For a better understanding of the information presented in these financial statements, these interim condensed consolidated and separate financial statements should be read together with the annual consolidated and separate financial statements for the period ended 31 December 2023. PricewaterhouseCoopers UAB carried out an audit of Consolidated and separate Financial Statements for the period ended on 31 December 2023.
These condensed interim consolidated financial statements as of 30 September 2024 were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. The Company have been following the same accounting principles as the ones that were followed in the preparation of financial statements for the year 2023.
The interim statements were prepared based on an acquisition cost, excluding tangible fixed assets, which were presented at revalued amount.
In accordance with the accounting principles of fixed assets of EPSO-G UAB group companies, assets are accounted at revalued amount less accumulated depreciation and impairment losses, whereas grants are accounted for by reducing the carrying amount of the related asset.
The Company's and the Group's financial year coincides with the calendar year.
2.2 Presentation currency
All amounts in these financial statements have been measured and presented in the euros (EUR), which is an official currency of the Republic of Lithuania. These financial statements are presented in EUR '000 unless otherwise stated.
3. Accounting estimates and assumptions
The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and disclosure of contingencies. Future events may occur which may cause the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will be recorded in the financial statements, when determinable.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
3.1 Loss of control of a subsidiary
On 31 May 2023, upon sale of 66% shares in the subsidiary, the Company lost control in GET Baltic. The retained 34 percent investment in GET Baltic was recognised at fair value at the time of loss of control, with the revaluation result of the remaining part of the investment recognised in profit or loss.
The investment in associate GET Baltic are reported in the separate and consolidated financial statements using the equity method. More information on the investment in associate is disclosed in Note 7.
3.2 GET Baltic's share options
On 31 May 2023, the Company purchased a put option enabling the Company to sell the remaining shareholding in GET Baltic at a fixed price. Under the same option agreement, the Company issued a call option for the investor to purchase the remaining shares of GET Baltic at a fixed price. In the Company management's assessment, these options meet the definition of derivatives. The put option, given the maximum 48-month option expiration term, creates a non-current financial asset for the Company that is measured at fair value. The investor's call option creates a financial liability for the Company that can be exercised at any time after the investor has fulfilled its obligations. Based on the Company management's estimates, the expected exercise period of the call option is 24 months from the put option date, i.e. upon fulfilment of the contractual obligations by the investor. As the Company does not have an irrevocable right to defer the put option, the liability is recognised as a current liability and measured at fair value. More information on options fair value is disclosed in Note 9.
4. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group's chief operating decision-maker, who is responsible for allocating resources and assessing performance, has been identified as the Board of Directors that makes strategic decisions.
The Group has two business segments which are consistent with the business directions stipulated in the Group's strategy:
- natural gas transmission segment;
- natural gas exchange operator's segment (activities of GET Baltic until 31 May 2023).
The Group has a single geographical segment – the Republic of Lithuania. All non-current assets of the Group are domiciled in Lithuania, where the Group operates.
The Board as the main decision-making body monitors the results with reference to the financial reports that have been prepared using the same accounting policies as those used for the preparation of the financial statements, i.e., information on profit or loss, including the reported amounts of income and expenses.
Key performance indicators are net profit and profit before interest, taxes, depreciation and amortisation, loss on revaluation, impairment and write-off of property, plant and equipment (EBITDA). These indicators are calculated on the basis of data reported in the financial statements.
The Board also monitors adjusted performance indicators, particularly the adjusted EBITDA. Adjusted EBITDA ratio is EBITDA ratio further adjusted by adding management's adjustments. That is non-IFRS alternative performance measure. Management's adjustments include temporary regulatory differences resulting from the Council's decisions. Management's adjustments may have both positive and negative impact on the adjusted ratios for the period. In management's view, adjusted EBITDA ratio more accurately presents results of the operations and allows for an objective comparison of the results between the periods as revenue and costs have been adjusted due to the regulator's decisions or are of a one-off nature.
Management also analyses investments and net debt of each individual segment.
The table below contains information on the Group's operating segments for the year ended 30 September 2024:
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
The table below contains information on the Group's operating segments for the year ended 30 September 2023:
| Transmission of natural gas | |
|---|---|
| Revenue and other income | 51,621 |
| Operating expenses, excl. depreciation, write-off and impairment | (32,658) |
| EBITDA | 18,963 |
| Adjusted EBITDA | 20,897 |
| Temporary regulatory differences for previous periods | 1,505 |
| Temporary regulatory differences for reporting period | 429 |
| Overall effect of management’s adjustments on EBITDA | 1,934 |
| EBITDA (under IFRS) reconciliation to Net profit/loss | (13,292) |
| Depreciation and amortisation | (11,213) |
| Loss on impairment and write-off of property, plant and equipment | (1) |
| Total finance costs, net | (1,634) |
| Income tax | (968) |
| Gains (losses) on derivative financial instruments | 166 |
| Share of net profit of associates | 358 |
| Net profit/(loss) | 5,671 |
| Total assets | 323,654 |
| Net debt | 96,281 |
| Investments (additions of property, plant and equipment and intangible assets) | 3,885 |
| Transmission of natural gas | |
| --- | --- |
| Revenue and other income | 60,743 |
| Operating expenses, excl. depreciation, write-off and impairment | (42,662) |
| EBITDA | 18,081 |
| Adjusted EBITDA | 19,190 |
| Temporary regulatory differences for previous periods | (2,162) |
| Temporary regulatory differences for reporting period | 3,271 |
| Overall effect of management’s adjustments on EBITDA | 1.109 |
| EBITDA (under IFRS) reconciliation to Net profit/loss | (2,253) |
| Depreciation and amortisation | (9,383) |
| Loss on impairment and write-off of property, plant and equipment | (25) |
| Finance costs, net | (1,292) |
| Income tax | (1,171) |
| Dividend income | 542 |
| Result on loss of control and revaluation of associates | 9.076 |
| Net profit/(loss) | 15,828 |
| Total assets | 333,389 |
| Net debt | 94,707 |
| Investments (additions of property, plant and equipment and intangible assets) | 27,805 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
5. Intangible assets
Movements on intangible assets account during the current and previous reporting period were as follows:
| Patents and licences | Computer software | Other intangible assets | Protected areas | Total | |
|---|---|---|---|---|---|
| As at 31 December 2022 | 6 | 1,288 | - | 1,290 | 2,584 |
| Cost (revalued amount) | 51 | 4,808 | 5 | 1,290 | 6,154 |
| Accumulated amortisation | (45) | (3,520) | (5) | - | (3,570) |
| Net book value as at 31 December 2022 | 6 | 1,288 | - | 1,290 | 2,584 |
| Additions | - | 884 | - | - | 884 |
| Write-offs | - | - | - | - | - |
| Amortisation charge | (1) | (406) | - | - | (407) |
| Off-set of grants against non-current assets | - | (170) | - | - | (170) |
| As at 30 September 2023 | 5 | 1,596 | - | 1,290 | 2,891 |
| Acquisition/revaluation amount | 51 | 5,522 | 5 | 1,290 | 6,868 |
| Accumulated amortisation | (46) | (3,926) | (5) | - | (3,977) |
| Net book value as at 30 September 2023 | 5 | 1,596 | - | 1,290 | 2,891 |
| Net book value as at 31 December 2023 | 7 | 1,526 | - | 1,026 | 2,559 |
| Additions | - | 379 | - | - | 379 |
| Write-offs | - | - | - | - | - |
| Amortisation charge | (3) | (545) | - | - | (548) |
| Off-set of grants against non-current assets | - | - | - | - | - |
| As at 30 September 2024 | 4 | 1,360 | - | 1,026 | 2,390 |
| Acquisition/revaluation amount | 55 | 5,950 | 5 | 1,026 | 7,036 |
| Accumulated amortisation | (51) | (4,590) | (5) | - | (4,646) |
| Net book value as at 30 September 2024 | 4 | 1,360 | - | 1,026 | 2,390 |
Depreciation of grants in amount of EUR 132 thousand as at 30 September 2024 (30 September 2023: EUR 159 thousand) was reported in the statement of profit or loss as an offsetting of depreciation of related assets against proceeds from grants.
As at 30 September 2024, no changes in assumptions affecting the amount of the provision for special land use conditions have been identified.
6. Property, plant and equipment
Movements on the property, plant and equipment account during the current and previous reporting period were as follows:
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
As at 31 December 2022
Acquisition/revaluation amount
Accumulated depreciation
Net book value as at 31 December 2022
Additions
Write-offs
Sales
Reclassification from/to inventories
Reclassifications between categories
Depreciation charge
Off-set of grants against non-current assets
As at 30 September 2023
Acquisition/revaluation amount
Accumulated depreciation
Net book value as at 30 September 2023
Net book value as at 31 December 2023
Additions
Write-offs
Disposals
Revaluation
Reclassification from/to inventories
Reclassifications between categories
Depreciation charge
Off-set of grants against non-current assets
As at 30 September 2024
Acquisition/revaluation amount
Accumulated depreciation
Net book value as at 30 September 2024
| Land | Buildings | Structures and equipment | Plant and machinery | Vehicles | Other PP&E | Construction work in progress | Total |
|---|---|---|---|---|---|---|---|
| 125 | 6,527 | 229,891 | 33,831 | 220 | 3,849 | 6,646 | 281,089 |
| 125 | 7,720 | 250,016 | 47,571 | 967 | 8,702 | 6,646 | 321,747 |
| - | (1,193) | (20,125) | (13,740) | (747) | (4,853) | - | (40,658) |
| 125 | 6,527 | 229,891 | 33,831 | 220 | 3,849 | 6,646 | 281,089 |
| - | - | 83 | 25 | 2 | 47 | 26,764 | 26,921 |
| - | (1) | (4) | (15) | - | (3) | - | (23) |
| - | - | - | - | - | (1) | - | (1) |
| - | - | (18) | (29) | - | (1) | - | (48) |
| - | 369 | 2,097 | 1,270 | - | 1,022 | (4,758) | - |
| - | (218) | (4,610) | (2,521) | (86) | (1,161) | - | (8,596) |
| - | - | - | - | - | - | (11,840) | (11,840) |
| 125 | 6,677 | 227,439 | 32,561 | 136 | 3,752 | 16,812 | 287,502 |
| 125 | 6,895 | 232,049 | 35,082 | 222 | 4,913 | 16,812 | 296,098 |
| - | (218) | (4,610) | (2,521) | (86) | (1,161) | - | (8,596) |
| 125 | 6,677 | 227,439 | 32,561 | 136 | 3,752 | 16,812 | 287,502 |
| 136 | 7,647 | 228,189 | 37,702 | 135 | 4,668 | 5,876 | 284,353 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| - | - | - | 40 | 3 | 114 | 3,349 | 3,506 |
| - | - | - | - | - | - | - | - |
| - | - | - | - | - | (1) | - | (1) |
| - | - | - | - | - | - | - | - |
| - | - | (4) | 71 | - | - | - | 67 |
| - | 1,276 | 1,011 | 194 | - | 229 | (2,710) | - |
| - | (263) | (5,203) | (3,016) | (70) | (1,437) | - | (9,989) |
| - | 34 | 193 | 77 | - | 27 | (170) | 161 |
| 136 | 8,694 | 224,186 | 35,068 | 68 | 3,600 | 6,345 | 278,097 |
| 136 | 8,957 | 229,389 | 38,084 | 138 | 5,037 | 6,345 | 288,086 |
| - | (263) | (5,203) | (3,016) | (70) | (1,437) | - | (9,989) |
| 136 | 8,694 | 224,186 | 35,068 | 68 | 3,600 | 6,345 | 278,097 |
In the Company non-current assets are accounted at revalued amount of assets, reduced by the amount of accumulated depreciation, recognized grants and impairment.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
The cost of PP&E in 2024 included: the renovation of cathodic protection systems amounting to EUR 633 thousand; the reconstruction of the Dispatching Building amounting to EUR 939 thousand; the installation of the gas pipeline shutoff devices and the remote control systems (SCADA) amounting to EUR 1.054 thousand.
Prepayments for PP&E, reflected under construction in progress:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 48 | - |
| Prepayment for PP&E during the period | 269 | 87 |
| Moved to construction in progress | (277) | (39) |
| Carrying amount at the end of the period | 40 | 48 |
Depreciation of grants in amount of EUR 3,811 thousand as at 30 September 2024 (As at 30 September 2023: EUR 3,145 thousand) was reported in the statement of profit or loss as an offsetting of depreciation of related assets against proceeds from grants.
As at 30 September 2023, part of the Company's capitalised borrowing costs (interest) were added to the cost of PP&E and amounted to EUR 117 thousand. As at 30 September 2024 no borrowing costs (interest) were added to the cost of PP&E.
The table below presents the net book values of property, plant and equipment, which would have been recognised had the historical cost method been used, less grants received and negative revaluations that would be treated as an impairment equivalent, as at 30 September 2024 and 31 December 2023:
| Land | Buildings | Structures and equipment | Plant and machinery | Vehicles | Other PP&E | Construction work in progress | Total | |
|---|---|---|---|---|---|---|---|---|
| As at 30 September 2024 | 125 | 8,604 | 222,684 | 33,657 | 61 | 3,590 | 6,345 | 275,066 |
| As at 31 December 2023 | 125 | 6,527 | 229,891 | 33,831 | 220 | 3,849 | 6,646 | 281,089 |
Had the value of the Company's PP&E been not reduced by the amount of grants, the carrying amount of PP&E as at 30 September 2024 would be higher by EUR 133,479 thousand (30 September 2023: EUR 137,451 thousand). Information on grants received/receivable used to reduce the value of property, plant and equipment:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 137,451 | 127,087 |
| Grants used for the acquisition of fixed assets | (161) | 14,686 |
| Depreciation charge | (3,811) | (4,293) |
| Write-offs | - | (29) |
| Carrying amount at the end of the period | 133,479 | 137,451 |
As at 30 September 2024, there were no regulatory decisions that could materially affect the value of PP&E. The conformity of the carrying amount of tangible fixed assets with their fair value will be assessed at the date of the financial statements.
7. Loss of control of subsidiary, investment in associate
Once the General Meeting of Shareholders approved the sale of shares in GET Baltic and the material terms and conditions thereof on 11 April 2023, the sale of a 66% shareholding in GET Baltic was completed on 31 May 2023.
The Company lost control of GET Baltic following the completion of the share sale transaction on 31 May 2023. The remaining 34 percent part of the investment in GET Baltic after the loss of control is recognised as an investment in an associate and measured at fair value at the time of loss of control. The fair value of investment in GET Baltic was determined on the basis of the sale of 66 percent of the shares.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Loss of control of subsidiary
The impact of the loss of control on the items in the consolidated statement of comprehensive income, excluding the fair value of the options, which are measured at the date of the financial statements for the purpose of reliability, is presented below:
| 2023 | |
|---|---|
| Gain on disposal of subsidiary, cash | 6,500 |
| Fair value after the revaluation of the remaining part of the investment | 3,348 |
| Fair value of the loss of control transaction | 9,848 |
| Net assets of subsidiary | (1,429) |
| Gain on loss of control and revaluation of associates | 8,419 |
The impact of the loss of control on the items in the separate statement of comprehensive income, excluding the fair value of the options, which are measured at the date of the financial statements for the purpose of reliability:
| 2023 | |
|---|---|
| Gain on disposal of subsidiary, cash | 6,500 |
| Fair value after the revaluation of the remaining part of the investment | 3,348 |
| Fair value of the loss of control transaction | 9,848 |
| Carrying amount of investment in subsidiary | (769) |
| Other transaction costs | (3) |
| Gain on loss of control and revaluation of associates | 9,076 |
Investment in associate
Investment in an associate in consolidated and separate financial statements is accounted for using the equity method.
Summarized statement of financial position of GET Baltic is presented below:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Non-current assets | 222 | 353 |
| Current assets | 35,757 | 74,900 |
| Total assets: | 35,979 | 75,253 |
| Non-current liabilities | 52 | 36 |
| Current liabilities | 34,235 | 72,920 |
| Total liabilities: | 34,287 | 72,956 |
| Net assets | 1,692 | 2,297 |
| Group's share, % | 34% | 34% |
| Group's share of net assets | 575 | 781 |
| Carrying amount of investment in associate | 3,438 | 3,644 |
Summarized statement of comprehensive income of GET Baltic for the nine-month period ended 30 September 2024 and for the period of 2023 from the date of loss of control until 31 December 2023:
| 1 January - 30 September 2024 | 1 June - 31 December 2023 | |
|---|---|---|
| Revenue | 1,353 | 1,111 |
| Profit before tax | 1,249 | 1,027 |
| Income tax benefit (expenses) | (195) | (159) |
| Net profit (loss) | 1,054 | 868 |
| Other comprehensive income | - | - |
| Total comprehensive income for the period | 1,054 | 868 |
| Total comprehensive income attributable to the Company/ Group | 358 | 295 |
| Dividends paid to Company/Group | 564 | - |
Changes in carrying amount of the investment in associate due to the application of the equity method:
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber
Grid
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 3,644 | - |
| Acquisition | - | 3,348 |
| Associate's net profit (loss) | 358 | 295 |
| Associate's other comprehensive income | - | - |
| Dividends received | (564) | - |
| Carrying amount at the end of the period | 3,438 | 3,644 |
8. Right-of-use assets
As described below, the Group and the Company have taken on lease office premises, motor vehicles, and land. Lease periods for premises, motor vehicles and land are 5-10 years, 3 years, and 99 years, respectively. The Group and the Company assessed the probability of exercising the lease extension option when recognising right-of-use assets and lease liabilities, and when determining the lease periods.
As at 30 September 2024, the initial cost of electric cars recognised as right of use assets amounted to EUR 2,059 thousand, lease period was 3 years.
From 1 January 2024 the Company has reviewed the value of right of use assets (office premises) for rent indexation. The rent for the office premises may be revalued based on the average change in the consumer price index in line with inflation, but may not exceed 2 per cent.
| Buildings | Land | Vehicles | Total | |
|---|---|---|---|---|
| Net book value at 31 December 2022 | 1,495 | 1,478 | 392 | 3,365 |
| New leases | - | - | 41 | 41 |
| Indexation | 31 | - | - | 31 |
| Write-offs | - | - | - | - |
| Depreciation charge | (135) | (12) | (233) | (380) |
| Net book value as at 30 September 2023 | 1,391 | 1,466 | 200 | 3,057 |
| Initial cost | 1,747 | 1,534 | 1,266 | 4,547 |
| Accumulated depreciation | (356) | (68) | (1,066) | (1,490) |
| Net book value as at 30 September 2023 | 1,391 | 1,466 | 200 | 3,057 |
| Net book value as at 31 December 2023 | 1,346 | 1,462 | 292 | 3,100 |
| New leases | - | - | 2,059 | 2,059 |
| Indexation | 28 | - | - | 28 |
| Write-offs | - | - | - | - |
| Depreciation charge | (137) | (12) | (527) | (676) |
| Net book value as at 30 September 2024 | 1,237 | 1,450 | 1,824 | 4,511 |
| Initial cost | 1,775 | 1,534 | 2,381 | 5,690 |
| Accumulated depreciation | (538) | (84) | (557) | (1,179) |
| Net book value as at 30 September 2024 | 1,237 | 1,450 | 1,824 | 4,511 |
As the useful life of the right-of-use assets is longer than the lease term, depreciation is calculated from the commencement date of the lease till the end of the lease term.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
9. Derivatives
The Company’s derivatives are reported under the following items of the statement of financial position:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Non-current assets | ||
| Put option of GET Baltic | 1,205 | 1,226 |
| Total non-current derivative assets: | 1,205 | 1,226 |
| Current liabilities | ||
| Call option of GET Baltic | 177 | 364 |
| Total current derivative liabilities: | 177 | 364 |
Information on the fair values of derivatives is presented below:
| Share option | Subscription date | Maturity | Exercise price | Fair value of option | |
|---|---|---|---|---|---|
| As at 30 September 2024 | As at 31 December 2023 | ||||
| Put Option | As at 31 May 2023 | As at 31 May 2027 | 4.07 | 1,205 | 1,226 |
| Call Option | As at 31 May 2023 | As at 31 May 2025 | 3.62 | 177 | 364 |
The call option can be exercised at any time after the investor has fulfilled its obligations, therefore this obligation is classified as a current liability. The fair value was determined based on the most likely option exercise period of 24 months estimated by the management.
10. Inventories
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Raw materials, spare parts and other inventories | 1,209 | 1,052 |
| Natural gas | 3,856 | 4,339 |
| Assets held for sale | - | - |
| Inventories, gross | 5,065 | 5,391 |
| Less: impairment | (406) | (517) |
| Total inventories | 4,659 | 4,874 |
The natural gas stock as at 30 September 2024, compared to 31 December 2023, was 11% lower. Changes in the value of natural gas inventories mostly influenced by the decrease in natural gas prices in the gas exchange.
The acquisition cost of the Company’s inventories accounted for at net realisable value as at 30 September 2024 amounted to EUR 1,209 thousand (31 December 2023: EUR 1,052 thousand). Inventory write-down allowance was included in other expenses.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
11. Trade receivables
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| I. Trade receivables under contracts with customers | ||
| I.1 Receivables after one year | - | - |
| Net book of receivables after one year: | - | - |
| I.2. Current trade receivables | ||
| Receivables for transmission of natural gas | 6,541 | 6,770 |
| Receivables for natural gas | - | 713 |
| Receivables for balancing of transmission system users | 829 | 1,553 |
| Receivables for other services | 5 | 2 |
| Less: expected credit losses for trade receivables | (9) | (19) |
| Trade receivables under contracts with customers | 7,366 | 9,019 |
| II. Trade receivables under other contracts | ||
| Other trade receivables | 3 | 11 |
| Less: impairment of trade receivables | - | - |
| Total trade receivables under other contracts | 3 | 11 |
| Total trade receivable | 7,369 | 9,030 |
Current trade receivables are interest free and their settlement term is typically between 7 and 30 calendar days. Impairment allowance of EUR 9 thousand was established for trade receivables as at 30 September 2024 (31 December 2023: EUR 19 thousand). The decrease in trade receivables was resulted in decrease in receivables for balancing of transmission system users and receivables for natural gas.
The Company applies a simplified credit risk assessment approach as required by IFRS 9, and accounts for loss allowances for lifetime credit losses from initial recognition of receivables.
To determine credit losses for receivables, the Company applies an individual assessment and a provision matrix. Entities in bankruptcy and/or liquidation are subject to a credit loss ratio of 100%.
Expected credit losses of trade receivables as at 30 September 2024 were as follows:
| Not past due | 1-30 days | 31-90 days | 91-180 days | 181 and more days | Total: | |
|---|---|---|---|---|---|---|
| Trade receivables assessed individually | 3,231 | - | - | - | - | 3,231 |
| Expected credit losses | (8) | - | - | - | - | (8) |
| Trade receivables assessed collectively | ||||||
| State-owned companies | 1,327 | - | - | - | - | 1,327 |
| Loss ratio (%) | 0% | 0% | 0% | 0% | 0% | |
| Expected credit losses | - | - | - | - | - | - |
| Other entities | 2,820 | - | - | - | - | 2,820 |
| Loss ratio (%) | 0,04% | 2,99% | 5,83% | 17,55% | 100% | |
| Expected credit losses | (1) | - | - | (1) | ||
| Total trade receivables | 7,378 | - | - | - | 7,378 | |
| Total expected credit losses | (9) | - | - | - | - | (9) |
Expected credit losses of trade receivables as at 31 December 2023 were as follows:
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
| Not past due | 1-30 days | 31-90 days | 91-180 days | 181 and more days | Total: | |
|---|---|---|---|---|---|---|
| Trade receivables assessed individually | 2,945 | - | - | - | - | 2,945 |
| Expected credit losses | (7) | - | - | - | - | (7) |
| Trade receivables assessed collectively | ||||||
| State-owned companies | 2,174 | - | - | - | - | 2,174 |
| Loss ratio (%) | 0% | 0% | 0% | 0% | 0% | |
| Expected credit losses | - | - | - | - | - | - |
| Other entities | 3,764 | 6 | 159 | - | 1 | 3,930 |
| Loss ratio (%) | 0,04% | 2,99% | 5,83% | 17,55% | 100% | |
| Expected credit losses | (2) | - | (9) | - | (1) | (12) |
| Total trade receivables | 8,883 | 6 | 159 | - | 1 | 9,049 |
| Total expected credit losses | (9) | - | (9) | - | (1) | (19) |
Movement on impairment allowance account of the Company's trade receivables:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 19 | 17 |
| Impairment (reversal of impairment) | (10) | 2 |
| Carrying amount at the end of the period | 9 | 19 |
12. Other amounts receivable
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Non-financial assets | ||
| LNG terminal funds receivable | 10,717 | 9,377 |
| Grants receivable | 253 | 7,360 |
| Taxes receivable | 33 | 37 |
| Total non-financial assets | 11,003 | 16,774 |
| Contract assets | - | 1,798 |
| Financial assets | ||
| Other receivables | 52 | 502 |
| Total financial assets | 52 | 502 |
| Total other receivables | 11,055 | 19,074 |
As at 30 September 2024 LNG terminal funds receivable included an overdue amount of EUR 7,451 thousand, whereof overdue amount of Achema AB amounted to EUR 7,168 thousand. As at 31 December 2023, the overdue amount included in LNG terminal funds receivable amounted to EUR 6,582 thousand of which EUR 6,432 thousand of AB Achema debt. The legal dispute with Achema AB is disclosed in Note 31.
The Company does not recognise impairment for the LNG terminal funds receivable as the Company, acting as administrator of the LNG terminal funds, is not exposed to credit risk.
Since the LNG terminal funds are not treated as assets of the administrator of the LNG terminal funds based on the Description of the procedure for administration of the LNG terminal funds, and therefore, they cannot be subject to debt recovery procedures based on the obligations of the administrator of the LNG terminal funds that are not related to the administration of the LNG terminal funds.
Grants receivable include support from the EU structural funds to finance the investment projects implemented by the Company. The decrease in grants receivable was influenced by the financing received from the EU Structural Funds - EUR 3,196 thousand was the financing of the GIPL project under the Connecting Europe Facility fund; EUR 3,743 thousand - financing from the European Regional Development Fund.
No impairment was established for the Company's other amounts receivable.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
13. Other financial assets
As at 30 September 2024 and 31 December 2023, the Company's other financial assets comprised LNG terminal funds, security deposits collected from the system users and fixed-term deposits. All security deposits received from the system users are held in the form of term bank deposits. Four fixed-term deposit agreements with different maturities were concluded for storage of the deposits - EUR 502 thousand (12-month fixed-term deposit), EUR 270 thousand (6-month fixed-term deposit), EUR 60 thousand (3-month fixed-term deposit) and EUR 40 thousand (3-month fixed-term deposit). On 26 March 2024 the Company entered into a term deposit agreement for a period of 6 months in the amount of EUR 5,815 thousand to meet the Company's future long-term obligations.
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| LNG terminal funds | 22 | - |
| Deposits received | 872 | 528 |
| Fixed-term deposits | 5,815 | - |
| Total other financial assets | 6,709 | 528 |
14. Cash and cash equivalents
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Cash at bank | 5 | 121 |
| 5 | 121 |
The Company keeps its cash balances on bank accounts. As at 30 September 2024, the cash balance was not material due to the Company's and the Group's treasury management policy aimed at maintaining minimum cash balances.
15. Share capital
The Company's share capital amounted to EUR 51,731 thousand and it is divided into 178,382,514 ordinary registered shares with par value of EUR 0.29 each. All shares were fully paid as at 30 September 2024 and 31 December 2023.
16. Dividends
The Ordinary General Meeting of Shareholders held on 30 April 2024 approved the distribution of profit for 2023. Share of profit allocated to payment of dividends was in amount of EUR 20,174 thousand, i.e. EUR 0.1131 per share.
During the Company's Ordinary General Meeting of Shareholders held on 11 April 2023, the decision was made to pay put dividends in total amount of EUR 12,059 thousand, i.e. EUR 0.0676 per share.
17. Reserves
Legal reserve
A legal reserve is a compulsory reserve under the laws of the Republic of Lithuania. Annual transfers of not less than 5% of net profit are compulsory until the reserve reaches 10% of the authorised share capital.
The Company's legal reserve amounts to EUR 5,173 thousand and represents 10% of its authorised share capital.
Other reserves
Other reserves are formed by the decision of the Annual General Meeting of Shareholders regarding the proposed appropriation of profit. When approving the proposed appropriation of profit for 2023, an unutilised reserves EUR 114,430 thousand were transferred back to retained earnings, a EUR 403 thousand share of profit allocated to a target reserve for support.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
When approving the proposed appropriation of profit for 2022, an unutilised reserve for support of EUR 166 thousand was reclassified back to retained earnings, a EUR 3,827 thousand was transferred to other reserves of which EUR 471 thousand a target reserve for support.
Revaluation reserve
Below is the impact of revaluation of property, plant and equipment on revaluation reserve as at 31 December 2023 and changes in the revaluation reserve over 2024.
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 2,767 | - |
| PP&E revaluation impact | - | 3,255 |
| Transfer of revaluation reserve to retained earnings | (226) | - |
| Effect of deferred income tax | 34 | (488) |
| Carrying amount at the end of the period | 2,575 | 2,767 |
Pursuant to Articles 39, 42, 51 and 59 of the Law on Companies of the Republic of Lithuania, no part of the revaluation reserve may be distributed, either directly or indirectly, it may be used only to increase the issued capital. The general meeting of shareholders may not adopt a decision to pay dividends if the equity capital of the company is lower or upon payment of dividends would become lower than the revaluation reserve, i.e. the use of the revaluation reserve for profit/loss allocation is prohibited.
18. Grants
Grants comprise grants for the acquisition of non-current assets and compensation of expenses. As at 30 September 2024 and 31 December 2023 movements in grants were as follows:
| Opening balance | As at 30 September 2024 | As at 31 December 2023 |
|---|---|---|
| Grants receivable (Note 12) | 7,360 | 6,976 |
| Grants received in advance (current liabilities) | (10) | (107) |
| 7,350 | 6,869 | |
| Recognised grants | ||
| Transfer to property, plant and equipment (Note 6) | (161) | 14,686 |
| Transfer to intangible assets (Note 5) | - | - |
| Write-off | - | - |
| Grants used for compensation of expenses | 3 | 54 |
| (158) | 14,740 | |
| Grants received | ||
| Grants received as cash | 6,939 | 14,259 |
| 6,939 | 14,259 | |
| Grants received in the form of assets | - | - |
| Closing balance | ||
| Grants receivable (Note 12) | 253 | 7,360 |
| Grants received in advance (current liabilities) | - | (10) |
| 253 | 7,350 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
19. Borrowings
To balance its working capital, on 2 September 2024 the Company and EPSO-G entered into a cash pool contract, based on which the maximum borrowing limit (overdraft) from EPSO-G was set in amount of EUR 70,000 thousand. As at 30 September 2024, the Company's borrowings under this contract amounted to EUR 29,506 thousand (31 December 2023: EUR 25,009 thousand).
As at 30 September 2024, the weighted average interest rate on the Company's borrowings was 2.57% (31 December 2023: 2.60%).
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Non-current borrowings | 56,181 | 60,962 |
| Current borrowings | 35,401 | 31,084 |
| Current borrowings | 29,506 | 25,009 |
| Current portion of non-current borrowings | 5,649 | 5,649 |
| Accrued interest payable | 246 | 426 |
| Total borrowings | 91,582 | 92,046 |
Long-term loan repayment terms:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Between 1 and 2 years | 5,649 | 5,649 |
| Between 2 and 5 years | 16,948 | 16,949 |
| After 5 years | 33,584 | 38,364 |
| Total | 56,181 | 60,962 |
All borrowings of the Company were obtained in the euros, and therefore, the outstanding balances of borrowings were denominated in the euros for the period of 30 September 2024 and 31 December 2023, thereby resulting in no foreign exchange effect.
There are no third-party guarantees or assets pledged by the Company as a collateral for bank borrowings.
Net debt balances:
| As at 30 September 2024 | As at 30 September 2023 | |
|---|---|---|
| Cash and cash equivalents | 5 | 11 |
| Non-current borrowings | (56,181) | (61,830) |
| Lease liabilities | (3,733) | (2,873) |
| Current portion of non-current borrowings | (5,649) | (5,649) |
| Current borrowings | (29,506) | (23,785) |
| Accrued interest payable | (246) | (250) |
| Current portion of lease liabilities | (971) | (331) |
| Net debt | (96,281) | (94,707) |
Reconciliation of net debt to cash flows from financing activities:
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Net debt as at 31 December 2022
Changes in cash and cash equivalents
Loan (received)
Loan repaid
Change in overdraft
Lease payments
Concluded lease contracts
Lease modifications
Other movements
Interest charges expensed and interest capitalised
Interest paid
Other non-cash changes
Net debt as at 30 September 2023
Net debt as at 31 December 2023
Changes in cash and cash equivalents
Loans (received)
Loans repaid
Change in overdraft
Lease payments
Concluded lease contracts
Lease modifications
Other changes
Interest charges expensed and interest capitalised
Interest paid
Other non-cash changes
Net debt as at 30 September 2024
| Cash | Borrowings | Lease liabilities | Total |
|---|---|---|---|
| 21 | (101,137) | (3,514) | (104,630) |
| (10) | - | - | (10) |
| - | - | - | - |
| - | 23,912 | - | 23,912 |
| - | (14,214) | - | (14,214) |
| - | - | 382 | 382 |
| - | - | (41) | (41) |
| - | - | (31) | (31) |
| - | - | - | - |
| - | (1,490) | (23) | (1,513) |
| - | 1,430 | 23 | 1,453 |
| - | (15) | - | (15) |
| 11 | (91,514) | (3,204) | (94,707) |
| 121 | (92,046) | (3,250) | (95,175) |
| --- | --- | --- | --- |
| (116) | - | - | (116) |
| - | - | - | - |
| - | (4,498) | - | (4,498) |
| - | 4,780 | - | 4,780 |
| - | - | 633 | 633 |
| - | - | (2,059) | (2,059) |
| - | - | (28) | (28) |
| - | - | - | - |
| - | (1,686) | (71) | (1,757) |
| - | 1,868 | 71 | 1,939 |
| 5 | (91,582) | (4,704) | (96,281) |
20. Lease liabilities
Lease liabilities and their movement were as follows:
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Carrying amount at the beginning of the period | 3,250 | 3,514 |
| Indexation | 28 | 31 |
| Concluded lease contracts | 2,059 | 217 |
| Terminated lease contracts (write-off of debt and accrued interest) | - | - |
| Interest charged | 71 | 30 |
| Lease payments (principal and interest) | (704) | (542) |
| Carrying amount at the end of the period | 4,704 | 3,250 |
| Non-current lease liabilities | 3,733 | 2,933 |
| Current lease liabilities | 971 | 317 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Future rental payments under non-cancellable lease agreements:
| Lease liabilities | As at 30 September 2024 | As at 31 December 2023 |
|---|---|---|
| Current portion | 971 | 317 |
| Maturity of non-current liabilities: | 3,733 | 2,933 |
| Between 1 and 2 years | 1,007 | 295 |
| Between 2 and 3 years | 511 | 291 |
| Between 3 and 5 years | 390 | 386 |
| After 5 years | 1,825 | 1,961 |
Interest charged on lease liabilities and included in the Group's finance costs amounted to EUR 71 thousand as at 30 September 2024 (31 December 2023: EUR 30 thousand).
The Company has a lease contract for office premises with variable lease payments not included in the value of lease liabilities. As from 1 January 2024, the lease rate for office premises revised in view of changes in the average consumer price index up to a maximum of 2 per cent. As at 30 September 2024, the Company's lease payments (principal amount) totalled EUR 633 thousand (as at 30 September 2023: EUR 382 thousand).
21. Trade payable
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Payables for property, plant and equipment | 300 | 900 |
| Payables for goods and services | 1,017 | 1,892 |
| Payables for repair services | - | 127 |
| Payables for natural gas | 247 | 1 |
| Payables for balancing services | 888 | 2,415 |
| 2,452 | 5,335 |
Trade payables are interest free and their settlement term is typically between 30 and 60 days. The decrease in trade payables was influenced by the lower debts for reconstruction services of fixed assets, other goods and services and balancing services.
22. Prepayments received
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Financial liabilities | ||
| Security deposits received | 872 | 528 |
| Total financial liabilities | 872 | 528 |
| Non-financial liabilities | ||
| Contract liabilities | 70 | 70 |
| Advance grants received | - | 6 |
| Other accrued revenue | - | 4 |
| Other prepayments received | 15 | 14 |
| Total non-financial liabilities | 85 | 94 |
| Total prepayments received and contract liabilities | 957 | 622 |
Prepayments received consisted of comprised security deposits received from the system users as a contract enforcement measure amounted to EUR 872 thousand as at 30 September 2024 (31 December 2023 – EUR 528 thousand). The system user, before entering into the transmission contract, must provide the Company with appropriate contract enforcement measures.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
23. Other amounts payable and current liabilities
| As at 30 September 2024 | As at 31 December 2023 | |
|---|---|---|
| Non-financial liabilities | ||
| Employment-related liabilities | 1,809 | 1,199 |
| Accrued expenses relating to vocation reserve | 1,282 | 1,654 |
| Administered LNG terminal funds payable | 10,736 | 8,906 |
| Accrued administered LNG terminal funds | - | 471 |
| Real estate tax payable | - | 732 |
| Payable value added tax | - | - |
| Other taxes payable | 33 | 19 |
| Other payables | - | - |
| Total non-financial liabilities | 13,860 | 12,981 |
| Financial liabilities | ||
| Payable CBCA contribution | 27,450 | 27,450 |
| Payable dividends | 73 | 65 |
| Other payables | 1 | 1 |
| Accrued expenses | 6,275 | 1,089 |
| Derivative liabilities | 177 | 364 |
| Total financial liabilities | 33,976 | 28,969 |
| Total other payables | 47,836 | 41,950 |
Other payables of EUR 27,450 thousand include the commitment to pay CBCA contribution. In accordance with the cross-border cost allocation principles, as part of GIPL project, the CBCA contribution will be paid to the Polish transmission system operator upon receipt of its payment request based on the audited value of the GIPL pipeline construction works on the Polish side. Accrued expenses include EUR 5,815 thousand of accrued guarantee funds for the replacement of the interconnectors of the GIPL project.
24. Revenue
The Group's and the Company's revenue includes as follows:
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | |
| Revenue under contracts with customers | |||
| Transmission of natural gas in the territory of Lithuania | 42,172 | 49,628 | 49,628 |
| Revenue from system balancing products | 9,094 | 10,635 | 10,635 |
| Revenue from trading on exchange | - | - | 812 |
| Revenue from connection of new consumers (deferred revenue) | 52 | 25 | 25 |
| Other income | 25 | 5 | 85 |
| Total revenue from contracts with customers | 51,343 | 60,293 | 61,185 |
| Revenue other than under contracts with customers | |||
| Revenue from administration of LNG terminal funds | 94 | 51 | 51 |
| Total revenue other than under contracts with customers | 94 | 51 | 51 |
| Total revenue | 51,437 | 60,344 | 61,236 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Revenue recognised over the period
| Transmission of natural gas in the territory of Lithuania | 42,172 | 49,628 | 49,628 |
|---|---|---|---|
| Revenue from system balancing products | 9,094 | 10,635 | 10,635 |
| Other income | 171 | 81 | 161 |
| Total revenue recognised over the period | 51,437 | 60,344 | 60,424 |
| Revenue recognised at a point in time, upon provision of services | |||
| Revenue from trading on exchange | - | - | 812 |
| Total revenue recognised at a point in time, upon provision of services: | - | - | 812 |
| Total revenue under contracts with customers | 51,437 | 60,344 | 61,236 |
Revenue from natural gas transmission and related services decreased by 15% for the period of nine months ended 30 September 2024, compared to the period of nine months ended 30 September 2023, due to lower natural gas price in gas exchange and lower volumes of natural gas transmitted.
25. Other income
The Group's other income includes as follows:
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | |
| Grants recognised as income | 4 | 42 | 42 |
| Sale of goods | 4 | 306 | 306 |
| Rental income | 5 | - | - |
| Gain on disposal of PP&E | 1 | 11 | 11 |
| Interest on late payment | 36 | 14 | 14 |
| Other income | 134 | 26 | 26 |
| 184 | 399 | 399 |
26. Purchase of natural gas
The cost of purchase of natural gas were consisted of:
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | |
| Expenses for natural gas system balancing products | (9,818) | (16,331) | (16,331) |
| Expenses for natural gas technological needs | (1,264) | (5,726) | (5,726) |
| Total | (11,082) | (22,057) | (22,057) |
The decrease in the cost of purchasing natural gas for the period of nine months ended 30 September 2024, compared to the period of nine months ended 30 September 2023, was due to the lower purchase price of natural gas.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
27. Other expenses
Other expenses of the Group and Company were consisted of:
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | |
| Telecommunications and IT system expenses | (1,544) | (1,623) | (1,674) |
| Business trips | (201) | (191) | (191) |
| Consulting services | (278) | (68) | (68) |
| Expenses of governing bodies | (78) | (69) | (69) |
| Management services | (534) | (205) | (205) |
| Personnel development | (87) | (167) | (167) |
| Public relations | (112) | (133) | (133) |
| Premise expenses | (600) | (621) | (621) |
| Transport | (584) | (501) | (501) |
| Council fee | (834) | (991) | (991) |
| Taxes | (2,484) | (2,205) | (2,205) |
| Business protection | (428) | (407) | (407) |
| Membership fees | (199) | (180) | (180) |
| Insurance | (470) | (348) | (348) |
| Other expenses | (859) | (949) | (966) |
| Total | (9,292) | (8,658) | (8,726) |
28. Financing activities
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | For the period of nine months ended 30 September 2023 | |
| Interest income | 130 | 5 | 450 |
| Other | - | 6 | 6 |
| Total finance income | 130 | 11 | 456 |
| Interest on borrowings | (1,758) | (1,301) | (1,301) |
| Other finance costs | (6) | (2) | (3) |
| Total finance costs | (1,764) | (1,303) | (1,304) |
| Finance costs at fair value | (1,634) | (1,292) | (848) |
29. Current and deferred income tax
Income tax expenses include as follows:
| Company | Group | ||
|---|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 0 September 2023 | For the period of nine months ended 30 September 2023 | |
| Current income tax expense for the reporting year | 491 | - | 140 |
| Deferred income tax expenses (benefit) | 477 | 1,171 | 1,171 |
| Income tax expenses/(benefit) for the reporting period | 968 | 1,171 | 1,311 |
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Deferred income tax assets and deferred income tax liabilities were offset in the Group's and the Company's statement of financial position, as they were related to the same tax authority.
When estimating the components of deferred income assets and liabilities as at 30 September 2024 and 31 December 2023, the Group and the Company applied income tax rate of 15%.
The reported amount of current income tax expenses can be reconciled to the income tax expenses that would result from applying a standard income tax rate of 15% to profit before tax:
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | |
|---|---|---|
| Profit (loss) before tax | 6,639 | 16,999 |
| Income tax (expenses) at the effective income tax rate | 996 | 2,550 |
| Non-deductible expenses, non-taxable income | (13) | 64 |
| Disposal of subsidiary and revaluation of the remaining investment in associate | - | (1,361) |
| Investment relief utilised during the reporting period | (10) | (82) |
| Other | - | - |
| Additional unutilised investment incentive | - | - |
| Adjustments to previous year income tax | (5) | - |
| 968 | 1,171 |
30. Basic and diluted earnings per share
Basic and diluted earnings (loss) per share reflect net profit (loss) divided by the weighted average number of shares. There are no diluting instruments, therefore, the basic and diluted earnings (loss) per share are the same. Calculation of basic and diluted earnings (loss) per share is presented below:
| Group | ||
|---|---|---|
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 | |
| Net profit attributable to equity holders of the Group (EUR '000) | 5,671 | 15,416 |
| Weighted average number of shares ('000 units) | 178,383 | 178,383 |
| Basic and diluted earnings (loss) per share (EUR) | 0.03 | 0.09 |
31. Off-balance sheet commitments and contingencies
Litigations
Below is information on pending civil cases:
- Civil case regarding the award of LNG terminal funds in the amount of EUR 7,080 thousand and late payment interest in the amount of EUR 830 thousand from Achema AB under the natural gas transmission service agreements concluded on 21 December 2012 and 22 December 2014.
Kaunas Regional Court suspended the case until adoption of the European Commission's decision on the compatibility of the LNG terminal add-on funds collected for the period from 1 January 2016 to 31 December 2018 with the state aid rules under European Union law.
In the case concerning the award of LNG terminal funds and late payment interest, the Company acts only as an administrator of the LNG terminal funds, transfers the LNG terminal funds to the beneficiaries only when it collects them from the buyers, and, therefore, it does not incur any credit risk as a result of the disputed amount.
- Civil case in which the Company is the defendant, opened under the action brought by the plaintiff Alvora UAB, by which Alvora UAB requests for declaration of the heads of claim raised by the defendant, i.e. the Company, concerning
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
the payment of the amount of EUR 4,868 thousand under the bank guarantees securing the guarantee obligations as ungrounded and unlawful.
In the Company's view, the bank guarantees were used lawfully and in accordance with the terms and conditions of the contract, since defects in the works were identified and Alvora UAB refused to eliminate them. The funds received under the guarantees will be used for the elimination of the identified defects. In the event that Alvora UAB eliminates the identified defects at its own expense before the outcome of the proceedings, the Company would reimburse the money received under the guarantees to the plaintiff Alvora UAB.
- Civil case in which Alvora UAB is the defendant in an action brought by the Company, by which the Company requests to award the losses in the amount of EUR 4,820 thousand and procedural interest from the commencement of the proceedings until the judgment is fully satisfied (the part of the money missing for the elimination of the identified defects, following the receipt of the guarantee payments in accordance with the case referred to in point 2) and EUR 290 thousand fine for the improper performance of the contract from Alvora UAB. The case is currently pending before the Court of First Instance.
By 3 May 2024 court ruling the cases referred to in points 2 and 3 were joined.
- Administrative case in which NERC is the defendant in an application filed by the applicant Company, by which the Company seeks the annulment of the Resolution of 22 April 2024 (hereinafter - the Resolution), by which NERC accepted the Act of Unscheduled Inspection of the Legality of the Use of GIPL Fittings in Construction and Testing During Operation of 15 April 2024 (hereinafter - the Act) and the conclusions contained therein and obliged the applicant to carry out the actions specified in the Resolution. According to the Company, the conclusions formulated in the Act are premature (final decisions are still pending in the ongoing international pre-trial investigation on possible falsification of parts and in the legal proceedings for the award of the costs of the removal of the missing defects against the contractor of the GIPL pipeline (see joined cases referred to in clauses 2 and 3 above)). The case is currently pending before the court of first instance.
Despite the pending administrative proceedings concerning the Resolution and the Act, as well as the ongoing pre-trial investigation and judicial proceedings, NERC initiated a sanctioning procedure for the infringements set out in the Act, which the Company disagrees with (for information on events after the reporting period, see note 33).
32. Related-party transactions
Disclosure includes transactions and their balances with the EPSO-G group companies, associate GET Baltic UAB, all state-owned enterprises or entities under significant influence of the State (transactions with such entities are disclosed separately only if the amount of the transactions exceeds EUR 100,000 per calendar year), management and their close family members.
The Group's and the Company's related parties as at 30 September 2024 and 31 December 2023 were as follows:
- the Company's parent company EPSO-G UAB, which is wholly owned by the Lithuanian Ministry of Energy;
EPSO-G Group companies:
- Litgrid AB (common shareholders);
- TETAS UAB (common shareholders);
- Baltpool UAB (common shareholders);
- Energy Cells UAB (common shareholders);
- EPSO-G Invest UAB (common shareholders), registered on 18 July 2024.
Associate GET Baltic.
The companies of Ignitis Grupė AB:
- Energijos Skirstymo Operatorius AB
- Ignitis UAB
- Ignitis Gamyba UAB
- Transporto Valdymas UAB
- Ignitis Polska sp. z.o.o.
- Other companies of Ignitis Grupė AB.
Other state-owned enterprises:
- KN Energies AB;
- Other state-owned enterprises or entities under significant influence;
- Management
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber
Grid
The tables below present the Company's related-party transactions and their balances as at 30 September 2024 and 30 September 2023:
As at 30 September 2024
| Purchases | LNG terminal funds (purchases) | Sales | LNG terminal funds (sales) | Receivables | LNG terminal funds receivable | (Proceeds) from borrowings | Payables | LNG terminal funds payable | Dividends received | Finance costs | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GET Baltic UAB | 11,987 | - | 1,116 | - | 7 | - | - | 245 | - | 564 | - |
| EPSO-G | 534 | - | - | - | - | - | 29,506 | 266 | - | - | 795 |
| TETAS UAB | 3 | - | - | - | - | - | - | 1 | - | - | - |
| Ignitis gamyba AB | 1,077 | - | 3,495 | 6,426 | 425 | 864 | - | 122 | - | - | - |
| Energijos skirstymo operatorius AB | 338 | - | 450 | 112 | 76 | 15 | - | 21 | - | - | - |
| Ignitis UAB | 2,747 | 24,000 | 8,505 | 5,267 | 867 | 709 | - | 295 | 6,760 | - | - |
| Transporto valdymas UAB | 52 | - | - | - | - | - | - | - | - | - | - |
| KN Energies AB | - | - | - | - | - | - | - | - | 3,975 | - | - |
| Other state-owned enterprises | 51 | - | - | - | - | - | - | 2 | - | - | - |
| 16,789 | 24,000 | 13,566 | 11,805 | 1,375 | 1,588 | 29,506 | 952 | 10,735 | 564 | 795 |
As at 30 September 2023
| Purchases | LNG terminal funds (purchases) | Sales | LNG terminal funds (sales) | Receivables | LNG terminal funds receivable | (Proceeds) from borrowings | Payables | LNG terminal funds payable | Dividends received | Finance costs | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GET Baltic UAB | 15,633 | - | 2,562 | - | 142 | - | - | 509 | - | 542 | - |
| EPSO-G | 205 | - | - | - | - | - | 23,785 | 190 | - | - | 422 |
| TETAS UAB | 3 | - | - | - | - | - | - | 1 | - | - | - |
| Ignitis gamyba AB | 1,544 | - | 3,619 | 1,587 | 444 | 640 | - | 151 | - | - | - |
| Energijos skirstymo operatorius AB | 361 | - | 5,176 | 30 | 1,072 | 12 | - | - | - | - | - |
| Ignitis UAB | 3,174 | 5,743 | 3,715 | 1,491 | 561 | 523 | - | 337 | 4,809 | - | - |
| Transporto valdymas UAB | 300 | - | - | - | - | - | - | 40 | - | - | - |
| KN Energies AB | - | - | - | - | - | - | - | - | 3,975 | - | - |
| Ignitis Polska sp. Z.o.o. | - | - | 118 | - | 3 | - | - | - | - | - | - |
| Other state-owned enterprises | 63 | - | - | - | - | - | - | 1 | - | - | - |
| 21,283 | 5,743 | 15,190 | 3,108 | 2,222 | 1,175 | 23,785 | 1,229 | 8,784 | 542 | 422 |
There were no guarantees issued or received for payables to/receivables from related parties, the settlement term was between 15 and 30 days. As at 30 September 2024, the Company neither formed nor recognised any impairment provisions for receivables from related parties.
AB AMBER GRID, company code 303090867, Laisvès ave. 10, Vilnius, Lithuania
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF 30 SEPTEMBER 2024
Amber Grid
Employment-related payments
Payments to Board members
| For the period of nine months ended 30 September 2024 | For the period of nine months ended 30 September 2023 |
|---|---|
| 568 | 629 |
| 73 | 69 |
| 641 | 698 |
The management of the Company is deemed to include the Company's manager, the Technical Director, the Legal and Administration Director, the Commerce Director, the Organisational Progress Director, and the Finance Director. No loans, guarantees were issued nor were any assets transferred to the management of the Company.
33. Events after the end of the financial year
The NERC decision of 22 October 2024 imposed a financial penalty of EUR 81.1 thousand on the Company for improper use of the gas transmission system by installing parts in the GIPL pipeline, some of which do not have a document of origin. The NERC's resolution of 22 October 2024 will enter into force within 30 days of its adoption (unless appealed by the Company). According to the Company, the contractor UAB "Alvora" is responsible for the infringement, having assembled the above mentioned parts, and the Company will therefore seek to recover the fine of EUR 81.1 thousand from UAB "Alvora".
32