KN Energies AB

Earnings Release • Feb 7, 2018

Disclosure 358039

Klaipedos Nafta - Notification on material event

AB Klaipėdos Nafta preliminary activity and revenue results for the January 2018

In January 2018 AB Klaipėdos nafta (hereinafter – the Company) has reloaded 776 thousand tons of petroleum products in Klaipėda and Subačius oil terminals (increase by 24.2 percent compared to January 2017, when 625 thousand tons were reloaded).

In January 2018 the Company’s Liquefied Natural Gas (LNG) terminal has re-gasified and supplied to the natural gas transmission system 253 thousand MWh of natural gas, while in January 2017 – 785 thousand MWh. The volume decreased due to lower capacities ordered by the terminal users and the fact that in January 2018 there were no LNG reloading activities (while in January 2017 166 thousand MWh of LNG were reloaded).

The preliminary sales revenue of the Company’s oil terminals’ for January 2018 amount to EUR 4.2 million and are higher by 50.0 percent compared to the same period of 2017 (EUR 2.8 million).

The preliminary sales revenue of the Company’s LNG Terminal for January 2018 amount to EUR 5.3 million (January 2017 – EUR 7.8 million). Revenue consists of the one twelfth of the re-gasification tariff for booked annual capacities approved by the National Control Commission for Energy Control and Prices for 2018 and the re-gasification tariff for amount of regasified LNG. Revenue for January 2017 was higher by EUR 2.2 million due to adjustment of actual booked gas capacities for 2016. Adjustment for actual gas capacities for 2017 are not calculated and has not been recorded yet.

Total preliminary sales revenue of the Company in January 2018 amount to EUR 9.5 million (January 2017 was EUR 10.6 million).

Petroleum products transhipment and LNG re-gasification and reloading, January:

	2018	2017	Change, %
Petroleum products reloaded, thousand tons	776	625	24.2%
LNG re-gasification and reloading, thousand MWh	253	785	-67.8%

Preliminary revenue of the Company, EUR million, January:

	2018	2017	Change, %
Oil terminals’ activity	4.2	2.8	50.0%
LNG terminal activity	5.3	7.8	-32.1%
Total:	9.5	10.6	-10.4%

Mindaugas Jurkaitis, acting head of Economics Units, +370 46 391 768