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JSC “Latvijas Gāze”: Unaudited financial results of JSC “Latvijas Gāze” Group for 2022

Latvijas Gaze
Latvijas Gaze

JSC “Latvijas Gāze” Group’s net profit for 2022 is 39 million EUR, and net turnover reached 689.7 million EUR, which is 31% higher than in 2021.

The 2022 financial year was full of challenges for JSC “Latvijas Gāze” Group, and passed in high uncertainty: natural gas prices exceeded the 200 EUR/MWh threshold, the impact of geopolitical events, regulatory changes on both Latvian and European Union levels. Despite this, JSC “Latvijas Gāze” continued its operations, ensuring an uninterrupted supply of gas to its customers, including fulfilling its obligations as Public Trader towards household clients.

Taking into account that the amount of natural gas consumed in Latvia decreased by more than 30% in 2022 compared to 2021, the amount of natural gas transmitted in the distribution network significantly decreased. This adversely affected the financial results of JSC "Latvijas Gāze" subsidiary JSC "Gaso" - JSC "Gaso" ended the year 2022 with a loss of EUR 1.8 million, as opposed to a profit of EUR 11.5 million in 2021.

In 2022, JSC “Latvijas Gāze” (Company) sold 6 993 GWh of natural gas to customers in Latvia and abroad. Compared to 2021, sales volumes have decreased by 53%. Sales volume decrease is attributable to some market participants’ choice against buying Russian-origin gas already before 1 January 2023, as well as customers have reconsidered their consumption habits of natural gas amid high price environment, including switching to alternative energy resources.

In 2022, the Company’s shareholders adopted a decision on launching the Company’s reorganisation process or the reduction of its share capital. The Board started and continued working on the assessment of multiple scenarios of further governance of JSC “Gaso”. As a result, a decision has been made to sell the JSC “Gaso”, with the process set to be completed in 2023. In the consolidated and Company’s standalone financial report for 2022, the investment in subsidiary and accordingly the subsidiary’s assets and liabilities are presented as assets and liabilities of assets held for sale. In the statement of profit or loss, the operations of the discontinued natural gas distribution segment are presented separately from the continuing operations of the trading segment. In order to present the assets and liabilities of the assets held for sale at net realisable value, the Company’s and consolidated statement of profit or loss includes an impairment of 72 million EUR.

JSC “Latvijas Gāze” Group will publish its audited consolidated financial statements for 2022 on 19 April 2023.

JSC “Latvijas Gāze”
Chairman of the Board
Aigars Kalvītis