Latvijas Gaze

Earnings Release • Nov 29, 2012

Unaudited Financial Report of 9 months of 2012

In 9 months of 2012, the JSC Latvijas Gāze sold to the consumers 1.02 billion m3 of natural gas. Compared to the respective period of 2011, natural gas sales have decreased by 9.2 % still being 1.8% or 18 million m3 above the volume planned in the budget of 2012.

The gas injection season at the Inčukalns Underground Gas Storage Facility (hereinafter – Inčukalns UGS) began on April 25, 2012 and was completed on October 11, 2012. 2.2 billion m3 of natural gas were injected into the Inčukalns UGS, reaching the active gas volume of 2,3 billion m3 at the end of the injection season.

Over 9 months of 2012, the consumers have been sold natural gas and provided services for LVL 293.5 million, which is by 18.7 % more than in the respective period of 2011 and by 2.9 % more than budgeted.

The rise of income over the respective period of 2011 has taken place because in the 9 months of 2012 the industrial and residential customers were applied differential natural gas sale end-user tariffs corresponding to a natural gas sale price, which was by 33 % higher than in the 9 months of 2011 due to quotations of the heavy fuel oil prices and changes in currency exchange rates. Compared to 2011, the income grew in both the industrial and the household customers sector.

The Company completed 9 months of 2012 with a profit of LVL 6.9 million, which is by 25 % less than in the respective period of 2011 when the profit amounted to LVL 9.2 million.

Within the framework of the capital investment programme, LVL 11.6 million of investment funds were spent over 9 months of 2012, mostly on the renovation of gas transmission and distribution pipelines, the modernization of technological equipment and wells.

Vinsents Makaris

Phone + (371) 67 369 144

E-mail: IR@lg.lv