Half Year financial report
Unaudited Financial Report of 6 months of 2014
In 6 months of the year 2014, the JSC Latvijas Gāze sold to the consumers 689.6 million m3 of natural gas. In comparison with the respective period of 2013, the natural gas sales decreased by 17.2 % due to the differences in outdoor air temperature and investments by heat supply companies in the use of renewable energy resources and a partial replacement of fossil fuels with woodchip.
The natural gas withdrawal season in the 1st half of 2014 was longer than planned because due to urgent repairs on the gas transmission pipeline Torzhok-Valdai, a natural gas feed from the Inčukalns UGS was necessary till 23rd May. Despite the delay of the injection season, the Inčukalns UGS will be filled, as this year, due to the mild winter, the volume of gas to be injected is lower. On 1st July 2014 the reserves of active gas at the Inčukalns UGS were 930.2 million m3.
Over 6 months of 2014, the consumers were sold natural gas and provided services for EUR 266.4 million, which is by 20,5 % less than in the respective period of 2013.
The decrease of income year-on-year stems from the lower natural gas sales volume and fact that during 6 months of 2014, due to changes in oil product quotations and currency rates, the residential and industrial customers were applied differential natural gas sale end-user tariffs corresponding to a natural gas sale price 8.5% below that of the 6 months of 2013. The income saw decrease both in the industrial and household sector.
The Company completed 6 months of 2014 with a profit of EUR 10.7 million, which is 0.01% lower than in the respective period 2013 when the Company profited EUR 10.8 million.
Within the framework of the capital investment programme, EUR 11.0 million of investment funds was spent over 6 months of 2014, mostly on the renovation of gas transmission and distribution pipelines and the reconstruction of wells.
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