Although 2020 has been a year of business challenges, even in these circumstances, the operator of Lithuania’s LNG terminal KN has achieved higher operating profitability than in previous periods.
The Group earned 60,8 million euros income and the adjusted Group’s EBITDA for this period amounted to 36,8 million Euros.
“In April-June, full of challenges and uncertainties, which were strongly affected by the coronavirus pandemic and the correspondingly slow recovery of market participants’ expectations, we stabilised revenues and increased our profitability in the third quarter,” commented Darius Šilenskis, CEO of KN. “We see that the biggest impact on the overall financial result of KN’s operations is made by the reduction of the LNG security component – by excluding this factor, we have been able to focus on operational efficiency and achieve higher adjusted net profit if compared to the same period last year.”
KN’s oil business is affected this year by oil refining margins still at historic lows, geopolitical circumstances, as well as the global coronavirus pandemic, which has reduced demand for oil products worldwide. Global trends this year have also led to a significant increase in the demand for liquefied natural gas and LNG terminal users have also successfully used the opportunities provided by the infrastructure in Klaipėda to purchase energy resources at the most favourable market prices.
All considered, assessing the company’s and market analytics data, KN continues to be the most efficient company using the capacity of its oil terminals in the Baltic States.
“This week, the LNG terminal has just started its seventh year of operation,” added Mr Šilenskis. “We meet this symbolic time stamp with great optimism – the LNG terminal in Klaipėda is among the most efficient commercial LNG terminals in Europe, more than 70 per cent of the gas imported into the country this year was supplied through the infrastructure we manage. The potential is really great, both in terms of energy interconnection projects being developed in the region and in terms of small-scale LNG operations, which are being driven by the goals of a climate-neutral economy in the EU.”
However, the CEO of KN reminded that the rest of 2020 will not be very easy for all business organisations due to the new wave of COVID-19 which will continue to affect the expectations of the public and market participants, as well as the performance of individual segments of KN operations.