AB Klaipėdos Nafta preliminary revenue for the January 2020

The preliminary sales revenue of the KN (AB Klaipėdos nafta, further the Company) LNG terminals for January 2020 comprised EUR 3.7 million (during the same month of 2019 – EUR 7.0 million). LNG terminal’s revenue consists of the regasification tariff fixed part (for booked annual capacities), variable part for amount of regasified LNG, reloading revenue and other consultations. The level of LNG terminal revenue (for booked annual capacities) does not depend on regasification volume. Revenue is confirmed by the National Energy Regulatory Council (NERC) based on the approved methodology of State regulated prices in the natural gas sector and is calculated for the whole upcoming year. The preliminary sales revenue of LNG terminals for the January 2020 decreased by 47.1 per cent due to the reduction of security supplement by 42 per cent from the 1^st January of 2020.The preliminary sales revenue of the Company’s oil terminals for the January 2020 comprised EUR 2.0 million, i.e. less by 35 per cent due to the decrease of transshipment quantities of oil products, compared to January of 2019.Total preliminary sales revenue of the Company for the January 2020 amount to EUR 5.7 million and is lower by 43.6 per cent compared to the same period of 2019 – EUR 10.1 million.Preliminary revenue of the Company, EUR million:Comment by the Company management:In 2019 KN implemented all the necessary steps to optimize Klaipėda LNG terminal costs thereby reducing the cost of LNG terminal infrastructure for consumers starting from 2020 annually. This decision is already reflected in the revenue of LNG terminal in January, despite the continuous high levels of LNG regasification.The revenue level of KN oil terminals is still affected by the unfavourable oil refining margins, which influence our major customers’ oil production volumes and respectively have a negative impact on oil transit. Also significant was the fact that in the course of Belarus’s negotiations with Russia on oil import prices, the amount of oil refined in refineries decreased and correspondingly less oil was diverted to the maritime market. However, it should be noted, that KN has a long-term cooperation agreement with our partners in Belarus and obligations to tranship agreed quantities of petroleum products. We believe that our customers will be able to meet agreed annual commitments in full by the end of the year.
Jonas Lenkšas, Chief Financial Officer, +370 694 80594