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HomeLNGIncreased revenues and net profit for Lithuania's LNG operator KN in 2023

Increased revenues and net profit for Lithuania’s LNG operator KN in 2023

The growing demand for liquid energy terminal services, high volumes of LNG terminal operations and a breakthrough in international LNG projects have led to a robust financial performance for Lithuania’s LNG operator KN in the first half of 2023. Since January, KN Group generated revenues of 42,4 million euros, marking an increase of 18 per cent compared to the previous year. The Group’s net profit for the first half of this year amounted to 8,1 million euros, a significant improvement compared to the loss of 13,8 million euros incurred a year ago.

“We are delighted with the strong performance of our liquid energy products and commercial LNG operations in the first half of the year, both of which experienced growth in EBITDA and profit,” stated Darius Šilenskis, KN CEO. “The results for this period reflect our enduring commitment to transforming the company—ensuring control of energy costs, reducing operational emissions, and fostering a diversified portfolio of activities in the liquid energy terminals. Furthermore, our efforts over the past few years in developing our international LNG business are already yielding tangible results and contributing positively to the company’s profit.”

During the first half of this year, in the segment of liquid energy products, both light oil products and biofuel transhipment increased. Thanks to a successfully diversified portfolio, KN managed to maintain its operational volumes at a similar level as in 2022, while the cargo volumes of other competing terminals in the Baltic countries decreased. It is estimated that the share of the transhipment market for the Klaipėda liquid energy product terminal has increased from 25 to 39 per cent this year.

Klaipėda LNG terminal continues to maintain record-breaking operational volumes – during the first half of 2023, regasification and reloading volumes were 17.3 terawatt-hours (TWh), which is 32 per cent higher than the same period last year. Eighty-seven per cent of natural gas transported to Lithuania in the months of January to June of 2023 was imported through the Klaipėda LNG terminal.

In the commercial LNG segment, the KN Group earned 0,5 million euros of net profit during the first 6 months of this year (compared to a net loss of 84,000 euros in the same period last year). The performance of this segment was influenced by the increased demand in global markets for consultancy services in developing LNG terminal projects, as well as the successful conclusion and implementation of commercial operator service contracts in Germany.

“We anticipate that our efforts so far will provide a solid foundation for the rest of the year,” emphasised the CEO of KN. “The end of the first half was marked by a significant milestone for us – the adoption of KN’s long-term strategy. Within the new strategy, we clearly outline the directions of our activities and ambitions, both in the main business segments and in committing to achieving complete climate neutrality in our operations by 2050. Therefore, in the second half of the year, we will focus on unfolding the strategy and successfully launching its implementation, while continuing to concentrate on enhancing value for our customers and operational excellence.”

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