Earnings Release • Apr 30, 2015
Earnings Release
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Date and place of registration: 27 September 1994, State Enterprise Centre of Registers Telephone/Fax numbers: +370 46 391772/ +370 46 311399
Authorized share capital: 380.606.184 Litas Company code: 110648893 Address: Burių g. 19, 91003 Klaipėda E-mail address: [email protected] Internet site: www.oil.lt, www.sgd.lt
The mission of the Company is to be a reliable import and export terminal of oil products and LNG for Lithuania and neighbor regions, to enable the region's oil refineries to export on a continuous basis their production by tankers through the Company's terminal to the Western European and further markets also to ensure alternative gas supply for the users in Lithuania and other neighbor countries. The vision of the Company is to be a financially sustainable terminal for transhipment of oil products and LNG, implement projects in time and invest in initiatives that will increase economic returns for the investors. The strategic objectives of AB Klaipėdos Nafta:
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The said agreements are intended to secure obligations of the Company to Hoegh LNG Klaipeda under the Time Charter Party (Lease of FSRU in conjunction with maintenance and operation services) agreement concluded on 2 March 2012.
During the 4 th Q of 2014 the Liquefied Natural Gas (LNG) Terminal received two LNG carriers which brought total 241 thousand m3 (108.9 thousand tons) LNG and 45 million nm3 natural gas were re-regasified and supplied to the natural gas transmission system.
Two four-track railway trestles provide a possibility to discharge or load 124 tank-cars
Storage tank farm
Biological Waste Water Treatment Facilities
Waste water collected and treated annually up to 400 cub. m thousand (160 m3/h)
Depth: 14 m Harbour entrance depth: 14.5 m Length: 270 each Tanker batch: up to 100,000 t with 12.5 m depth
A service to import gasoline and diesel by tankers for the Lithuanian market needs
Profitability (2010 – 2014)
The transhipment of 2014 is lower by 6.2% compared to 2013. The reduce in transhipment volume is related with the very unfavorable situation in the oil market during the first half of 2014.
Firstly, strongly increased competition of Russian Federation ports influenced of oil products from that country transhipment decrease for the Company as well as for the other Baltic countries terminals. Moreover, since the middle of 2013 oil products refinery margins significantly dropped and macroeconomic situation in oil market worsened, that forced SC Orlen Lietuva to reduce refining volumes and correspondingly the oil products export through Klaipedos nafta oil terminal. Situation in oil market stabilized from the second half of 2014, but the final transhipment volumes shows the reduce.
LNG Terminal project was implemented in time. During the 4 th Q of 2014 the Liquefied Natural Gas (LNG) Terminal accepted two LNG carriers which brought total 241 thousand m3 LNG and 45 million nm3 natural gas were re-regasified and supplied to the natural gas transmission system.
| 2014 | 2013 | Change (%) |
|
|---|---|---|---|
| Transhipment of oil products by type (thousand tons): | 5,501 | 5,863 | (6.2%) |
| - HFO - heavy oil products |
3,277 | 3,713 | (11.7%) |
| - LFO - light oil products |
2,224 | 2,150 | 3.4% |
| Regasified LNG, million m3 |
45 | - | - |
| Transhipment of oil products by markets (net, thousand tons): |
5,501 | 5,863 | (6.2%) |
| Export (Orlen Lietuva, AB) |
3,489 | 3,689 | (5.4%) |
| Transit (oil refineries of Russia and Belarus) | 1,872 | 1,998 | (6.3%) |
| Other | 140 | 176 | (20.5%) |
| Investments (PP&E acquisitions) (LTL thousand) | 138,561 | 98,954 | 40.0% |
| Oil terminal | 4,086 | 34,754 | (88.2%) |
| Liquefied natural gas terminal | 133,181 | 63,919 | 108.4% |
| Subačiaus fuel storage |
1,294 | 281 | 360.5% |
| Employees of the Company according to categories | 374 | 361 | 1.6% |
| Managers | 34 | 32 | 6.3% |
| Specialists | 130 | 108 | 20.4% |
| Workers | 210 | 228 | (7.9%) |
Dvylikos mėnesių, pasibaigusių 2014 m. gruodžio 31 d., veiklos rezultatų pristatymas 9
Despite the very unfavorable circumstances in oil products markets the Company managed to sustain high effectiveness and profitability level of the Company's activity:
Reacting to the situation the management of the Company was actively searching for the opportunities increasing the efficiency of the Company activity. Subsequently certain optimization changes were made that shall result more economical benefits in future periods. Also management is actively dealing with the existing and potential clients regarding the additional transporting of oil products.
The profitability of 2014 decreased compared to the same period of 2013:
The main reason for the profitability decrease is the reduced transhipment volume and decreased revenues.
| LTL thousand | 2014 | 2013 | Change (%) |
|---|---|---|---|
| Sales revenue | 137,334 | 126,860 | 8.3% |
| Gross profit | 45,403 | 50,771 | (10.6%) |
| EBITDA | 58,314 | 63,289 | (7.9%) |
| EBIT | 32,295 | 38,409 | (15.9%) |
| EBITDA margin | 42% | 50% | (16.0%) |
| EBIT margin | 24% | 30% | (20.0%) |
| Financial and investment activities result | (983) | (80) | 1128.8% |
| Profit before taxation | 31,312 | 38,329 | (18.3%) |
| Net profit | 31,963 | 35,649 | (10.3%) |
| Gross profit margin | 23% | 28% | (17.9%) |
| 31 December 2014 |
31 December 2013 |
Change (%) |
|
| Non-current assets | 653,380 | 523,681 | 24.8% |
| Current assets | 112,860 | 152,153 | (25.8%) |
| Total assets | 766,240 | 675,834 | 13.4% |
| Shareholders' equity | 603,257 | 571,651 | 5.5% |
Total equity (LTL 603.3 million) 31 December 2014 amounted to 78.7% of the total assets (31-12- 2013 – 84.6 %).
| To increase the oil terminal's flexibility in accepting different types of oil products; To ensure the compliance with environmental and fire safety requirements; The implementation of the LNGT Project. |
|
|---|---|
| Major Oil terminal investments |
In 2014 finished reconstruction of the storage tank park of HFO tanks park: demolition of the four old storage m3 m3 tanks each 5 000 and construction of the two new universal storage tanks each 32,250 ; In the middle of 2014 the new auto tanker fuel loading station was built (total investment LTL 0.45 million). Due to this equipment the tankers filling shall be more flexible and more attractive at point of time; In 2014 finished modernization works of the fire safety system and other works. These investments, the Company financed from its own funds. |
| LNG project investments |
From the beginning of the project to 31 December 2014 the total amount of investments into LNGT comprise LTL 229.5 million (including administrative expenses). For financing of the LNGT project in 2013 the Company concluded the Financing Agreement for EUR 87 million loan th with the European Investment Bank (EIB). Up to 50% of project costs are financed under this contract. On the 27 of November, 2014 the Company has concluded the Credit Agreement with the Nordic Investment Bank (NIB) regarding granting a credit of up to EUR 34.8 million euros for the implementation of the project of the LNGT. The term of the credit – up to 20 years. |
| Subačius fuel storage investments |
In 2012 the Company has added Subačius fuel storage base as a part of its activity. This object allowed Company to diversify its activity with the long term oil products storage. In 2014 the major investments are directed: Water treatment system modernization; Upgrade fire safety equipment and tools. |
The terminal will help to diversify energy sources
Ensures security of energy supply
Import prices will reflect the global market price level
LNG terminal: the first LNG terminal in the Baltic states, which comprise of the LNG floating storage and regasification unit – FSRU (170,000 thousand m3 ), jetty (450 m length) and pipeline (18 km.). LNG to the terminal are delivered by the vessels - LNG carriers.
On the 27th of October, 2014 Lithuanian liquefied natural gas (LNG) terminal floating storage and regasification unit (FSRU) INDEPENDENCE sailed into the port of Klaipeda and was successfully moored to her jetty. It was an extraordinary day in the history of Lithuania and its energy independence as LNG terminal is the alternative source of the gas supply for Lithuania. INDEPENDENCE was warmly welcomed by the citizens and guests of Klaipeda.
At the end of October, 2014 the first LNG cargo for the LNGT terminal testing purposes that was delivered to the floating storage (FSRU) Independence. The specialists confirmed that all systems and equipment worked properly and pumping process was smooth.
In 2014 the LNG Terminal received two LNG carriers which brought total 241 thousand m3 (108.9 thousand tons) LNG and 45 million nm3 natural gas were re-regasified and supplied to the natural gas transmission system.
In the middle of November, 2014 the first natural gas was supplied from the LNG terminal to the natural gas transmission system.
Results for the twelve months period ended 31 December 2014 17
294 m
45 m
Storage capacity 170.000 m3
Regas capacity 11 mln.m 3 /d
The fixed costs of the LNG terminal are covered through Security supplement to the gas transmission tariff.
On the 6 th of May, 2014 in the event organized by the daily newspaper Verslo zinios and Financial Analysts Association, former Company's Director of finance and administration department Mantas Bartuška (currently General Manager) was awarded CFO of the year 2014.
Dvylikos mėnesių, pasibaigusių 2014 m. gruodžio 31 d., veiklos rezultatų pristatymas 20On the 22th of the January 2015 in the annual Baltic Market Awards (BMA), organized by the Nasdaq, Klaipėdos nafta became the winner in the category "The Most Visible Improvement over the Year" and was invited to ring the Opening Bell at Nasdaq Market Site in Times Square, New York by Bob Greifeld, CEO of Nasdaq.
On the 28th of January, 2015 At the 8th annual European Gas Conference 2015, in Vienna, Klaipedos nafta won the Project of the Year award for the implementation of the Liquefied Natural Gas (LNG) Terminal project. Company was one of four nominees among such well-known companies like Shell and Total Gas & Power.
• 29 April 2014 General meeting of shareholders approved the payment of dividends for the shareholders amounting LTL 0.0009366255 per share (total amount allocated for the dividends comprise 356,485 LTL).
| 31 December 2014 |
31 December 2013 |
|||
|---|---|---|---|---|
| Shareholder's name (company's name, address, company code of registration) |
Number of owned shares (unit) |
Part of authorized capital (%) |
Number of owned shares (unit) |
Part of authorized capital (%) |
| The Republic of Lithuania, represented by the Ministry of Energy of the Republic of Lithuania (Gedimino pr. 38/2, Vilnius, 302308327) |
275,241,290 | 72.32 | 275,241,290 | 72.32 |
| Concern Achemos grupė UAB (Jonalaukis village, Jonava district, 156673480) |
38,975,150 | 10.24 | 38,975,150 | 10.24 |
| Other (each owning less than 5%) |
66,389,744 | 17.44 | 66,389,744 | 17.44 |
| Total | 380,606,184 | 100.00 | 380,606,184 | 100.00 |
The shareholders having more than 5% of the authorized capital of the Company as at 31 December 2014 and at 31 December 2013:
| Highest share price Lowest share price | Share price at the end of period |
Average share price |
Turnover, unit | Turnover | ||
|---|---|---|---|---|---|---|
| LTL | 1.12 | 0.97 | 1.07 | 1.02 | 14,454,031 | 14,915,893 |
| EUR | 0.32 | 0.28 | 0.31 | 0.30 | 14,454,031 | 4,319,941 |
As of 31 December 2014 the Company's market capitalization was LTL 408.7 million (EUR 118.4 million).
Organizational management structure
Independent Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 24 October 2011. The Supervisory renewed the mandate on 29 April 2014 for 4 years or until the time, when the new Board is elected ant starts acting.
Mindaugas Jusius Independent Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 24 October 2011. The Supervisory renewed the mandate on 29 April 2014 for 4 years or until the time, when the new Board is elected ant starts acting.
Member of the Board of the Company. Elected as the Board member by the Supervisory Board on 25 August 2014 until the term of office of the acting Board of Company.
Member of the Board of the Company, General Manager. Elected as the Board member by the Supervisory Board on 25 September 2014 until the term of office of the acting Board of Company.
There is no permanent Chairman of the Board elected, therefore, the Chairman of the Board is elected from the Board members every meeting by ad hoc principle.
Mantas Bartuška General Manager
Gediminas Vitkauskas Director of Oil terminal department
Osvaldas Sabaliauskas Deputy General Manager of the Company
Rolandas Zukas (until 17-02-2015) Director of the LNG terminal department
Marius Pulkauninkas Director of Finance and Administration Department
Acting Director of Commerce department
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