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State-owned enterprises earned LTL 102 million of profit during the first quarter of 2012

Date

2012 07 25

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Revenues of state-owned enterprises (SOEs) portfolio increased by 1.7 percent (to LTL 1 667 million) during the first quarter of 2012 compared to the corresponding period of the previous year. Companies in energy sector experienced the sharpest growth of revenues (4.7 percent) while sales of forest sector companies decreased the most – by 8 percent.

“Normalized net profit of the SOEs portfolio reached LTL 102 million in the first quarter of 2012, which was nearly LTL 31 million less compared to the same period of the previous year. The return on equity of SOEs portfolio practically did not change and amounted to 0.2 percent. Lower profit was caused by worsened financial results of companies in transport sector due to smaller freight flows, volumes of wood sales and growing operating costs,” - said Minister of Economy Rimantas Žylius.

Market value of SOEs portfolio rose during the first quarter of 2012. The value of SOEs shares that belong to the state and are listed on NASDAQ OMX Vilnius stock exchange increased by 11 percent up to LTL 3.3 billion. Because of positive investors’ expectations about future performance of the company the value of AB “Litgrid” shares grew the most – by 29.5 percent.

• Net profit of AB “Lietuvos Geležinkeliai” group of companies plunged 2.4 times to LTL 21 million. Lower profit was caused by higher depreciation and employees’ remuneration costs as well as by lower freight volume: the company transported 11.5% less freight during the first quarter of 2012 than during the corresponding period of the previous year. Nevertheless, the efficiency of AB “Lietuvos Geležinkeliai” rose as the freight transportation direction’s net profit per transported freight tone increased from LTL 2.8 to LTL 4.4.

• 9% lower freight transportation volume and slightly higher operational costs worsened VĮ Klaipėda State Seaport Authority’s financial results. The net profit fell from LTL 28 million to LTL 20 million and ROE decreased by 0.4 percentage point to 5.2 percent.

• AB Lietuvos Paštas increased its revenues from LTL 44 million to LTL 46 million. Revenues from universal postal services jumped by 12.7 percent and amounted to LTL 23.4 million. More efficient management of the company’s resources allowed operating costs to stay practically unchanged. Therefore, the net profit of AB Lietuvos Paštas was LTL 405 thousand (the loss during the first quarter of previous year was LTL 2 million) and the ROE kept rising from 0.6 to 3 percent.

• Revenues of UAB Visaginas Nuclear Power Plant (VNPP) group of companies grew by 3.9 percent, during the first quarter of 2012, due to higher consumption of electricity. However, the net profit of VNPP fell by 41.9 percent - from LTL 15 million to LTL 9 million. This was caused by LTL 14 million higher operating costs, because of preparation works for VNPP project, as well as by grown expenses for fuel, because of higher fuel prices and increased energy production by “Lietuvos Energija”, which is owned by VNPP.

• The amount of oil products reloaded by AB Klaipėdos Nafta increased by 3% because of higher volumes of oil products shipped from Byelorussia. Revenues of the company grew by 13.3% and the net profit rose from LTL 8 million to LTL 11 million. The ROE of AB Klaipėdos Nafta increased by 0.5 percentage point – up to 10%.

• Revenues of forest enterprises fell from LTL 141 million to LTL 129 million during the first quarter of 2012. This was caused by 9.3 percent lower sales of round wood. The operating costs of forest enterprises grew by 5.5 percent to LTL 55.8 million due to more intense forest restoration and plantation activities and higher wood selling costs. Therefore, the net profit (which was calculated by subtracting property and raw materials taxes from operating costs) of forest enterprises decreased from LTL 49 million to LTL 39 million, i.e. from LTL 51.8 to LTL 45.1 per cubic meter of sold round wood.