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JSC ”Latvijas Gāze”: Audited “Latvijas Gāze” Group consolidated and JSC "Latvijas Gāze" annual report for year 2020

Latvijas Gaze
·2-min read

In 2020, Latvijas Gāze group succeeded in attaining a positive result despite the challenges brought on by the market conditions. Relatively mild air temperatures, strict restrictions due to the spread of the coronavirus, and low level of natural gas prices were the main factors shaping the operating environment for the JSC “Latvijas Gāze”. Generally, the air temperature remained above the long-term seasonal average during winter months, affecting the demand for natural gas in the heating segment in particular. Substantially higher summer-winter spreads compared to the regulated charge for storage capacities led to a high demand for storage services, consequently making the JSC “Latvijas Gāze” have less storage available compared to 2019. Furthermore, maintenance of the natural gas transmission systems limited the possibilities of rerouting and optimising natural gas flows.

In 2020, the JSC “Latvijas Gāze” sold 11 896 GWh of natural gas to customers in Latvia and abroad, with the latter accounting for 28% of the total JSC “Latvijas Gāze” natural gas sales volumes. Several major customers accumulated substantial natural gas reserves during 2019, thus reducing their natural gas demand in 2020 and adversely affecting the domestic sales volumes of the JSC “Latvijas Gāze”.

The Group’s net turnover in 2020 reached 190.5 million EUR, EBITDA amounted to 26.5 million EUR. The Group’s net profit for 2020 was 11.2 million EUR*.

The JSC “Latvijas Gāze” in 2020 continued to invest towards improving the effectiveness and efficiency of core business and customer care processes. In total the JSC “Latvijas gāze” invested approximately 1.2 million EUR in IT projects to ensure most efficient operations and services to customers. At the end of December 2020 JSC “Latvijas Gāze” made the final transition to a new billing system MECOMS and a new self-service portal. The modernization of the existing IT infrastructure and the digitalization of the Company’s sales processes will play a key role in serving customers with the best products and services at the most competitive price also in the future.

Audited Annual report is published in PDF format. The financial statements are also published in iXBRL format in accordance with the European Single Electronic Format (ESEF) reporting requirements. In accordance with ESEF requirements, the primary statements of the financial statements are marked with XBRL tags. The ESEF financial statements are available in the zip file attached to this release.

Latvijas Gāze Group’s Unaudited Consolidated Interim Condensed Financial Statement for 3 months of 2021 are due to be published on May 26, 2021.

*More detailed information on the alternative performance measures can be found on page 16 of the annual report.

Additional information:
Romāns Tjurins
Vice President Finance
Phone: + (371) 67 369 139