Financial Statement Release
JSC Latvijas Gāze unaudited Financial Report of 12 months of 2014
In 12 months of the year 2014, the JSC Latvijas Gāze sold to the consumers 1 293.9 million m3 of natural gas. In comparison with the respective period of 2013, the natural gas sales decreased by 10.9 % 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 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 was filled in time, as this year, due to the mild winter, the volume of gas to be injected was lower.
The injection season at the Inčukalns UGS was completed on October 23, 2014, with 1 907.1 million m3 of natural gas injected over the season and 2 300 million m3 of active gas present at the end of the season.
Over 12 months of 2014, the consumers were sold natural gas and provided services for EUR 503.1 million, which is by 12.4 % 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 12 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 4.9% below that of the 12 months of 2013. The income saw decrease both in the industrial and household sector.
The Company completed 12 months of 2014 with a profit of EUR 30.6 million, which is 3.7% higher than in the respective period 2013 when the Company profited EUR 29.5 million. The increase of profit stems from an adjustment of the provisions made in earlier periods for personnel expenses to meet liabilities under the Collective Agreement (EUR 1.2 million).
Within the framework of the capital investment programme, EUR 30.0 million of investment funds was spent over 12 months of 2014, mostly on the renovation of gas transmission and distribution pipelines, the modernization of technological equipment and the reconstruction of wells.
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