JSC “Latvijas Gāze”: Unaudited financial results of Latvijas Gāze group for 9 months of 2022
Disciplined risk management approach during high volatility environment was the basis for successful financial performance during the winter season (October 2021 – March 2022) and also resulted in strong financial performance during Q2 and Q3 2022.
The Household segment caused losses in the first half of 2022. Despite the fact that on July 1, 2022, the household tariff was adjusted upwards for the next tariff period, the natural gas purchase price during the third quarter of 2022 was considerably higher compared to the tariff sales price, and as a result, the household customer segment continued to generate losses. As high natural gas prices remain, JSC “Latvijas Gāze” anticipates that the household segment could also generate losses in the fourth quarter of 2022.
In order not to cause losses to the Group amidst high uncertainty in the natural gas market, Latvijas Gāze continues disciplined trading without taking on additional risks and obligations, and does not conclude new transactions with derivative financial instruments due to high price fluctuations.
The Group’s net turnover during nine months of 2022 was 580.3 million EUR, EBITDA amounted to 108.4 million EUR and net profit was 96.6 million EUR.
During nine months of 2022, JSC “Latvijas Gāze” sold 6 023 GWh of natural gas to customers in Latvia and abroad. Compared to the same period in 2021, sales volumes have decreased by 44%. Sales volume decrease is attributable to the fact that market is self-sanctioning Russian origin gas ahead of 1st January 2023 in Latvia, when the ban on natural gas supplies from Russia will come into force, and customers have reconsidered their consumption habits of natural gas amid high price environment. For the same reasons JSC “Latvijas Gāze” forecasts lower sales volumes in 2022 compared to 2021.
Latvijas Gāze group will publish its unaudited consolidated interim condensed financial statements for financial year 2022 on February 24, 2023.
JSC “Latvijas Gāze”
Chairman of the Board
Aigars Kalvītis
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