Financial Statement Release
JSC Latvijas Gāze audited Financial Report of 12 months of 2014 and Corporate governance report
Over the reporting year, users were supplied 1 293.9 million m3 of natural gas. In comparison with 2013 natural gas sales (in m3) fell by 10.9%. The decrease of natural gas sales stemmed from the record high air temperature in the winter months of the reporting year, as well as the investments by heating supply companies in the use of renewable energy sources and the partial replacement of fossil fuels with wood-chips. The changes in the sale price of natural gas in 2014, when compared with 2013, were influenced by changes in oil product quotations on the stock exchange, currency rates, and the flow of gas supplies.
In 2014, the Company sold natural gas and provided services to customers for EUR 503.1 million, which is a decrease of 12.4% year-on-year; expenses (excluding administrative costs) amounted to EUR 452.3 million and gross profit to EUR 50.7 million. The changes in the structure of net turnover resulted from changes in the natural gas sales volume and the natural gas sale price, as well as changes in the structure of services of the Inčukalns Underground Gas Storage Facility (hereinafter Inčukalns UGS) provided to foreign countries.
During the 2014 season, 1.907 billion m3 of natural gas was injected into the Inčukalns UGS and 2.058 billion m3 was withdrawn. Compared with the 2013 season, the volume of natural gas injected fell by 10.7% with 425.4 million m3 of gas remaining at the end of the 2013/2014 heating season. As the natural gas storage tariffs have been set for one season of gas storage, the year 2014 saw an increased income from the storage of natural gas. The volume of natural gas withdrawn grew by 10.9% in the reporting period.
The Company completed the year 2014 with a net profit of EUR 32.03 million, which is EUR 0.12 million, or 0.4%, below that of 2013 with EUR 32.15 million. The net profitability was 6.4% in 2014 and 5.6% in 2013.
In 2014, the Company invested EUR 30.0 million in the modernisation of the natural gas supply system and the creation of new fixed assets. 49.2% of the total investment was spent on the modernisation of the gas transmission pipeline system, 21.3% – on the expansion of the distribution networks and the renewal of fixed assets, and 26.5% – on the improvement of operational safety and the modernisation of equipment at the Inčukalns UGS. There were 443.4 thousand gas connections in total at the end of the year.
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