|Emitents||Latvenergo, AS (213800DJRB539Q1EMW75)|
|Veids||2.2. Iekšējā informācija|
On March 5, 2020 Latvenergo AS organized its Investor Conference Webinar. During the webinar Guntars Baļčūns, Latvenergo AS Chief Financial Officer, analyzed Latvenergo Group financial results of 2019, informed about other key events of the Group and provided answers to webinar participants' questions.
The recorded Latvenergo AS webinar is available online: https://bit.ly/39quxQf, and the presentation, demonstrated during the webinar, can be found here: https://prezi.com/view/z1oxbNOngGKx2sHFpYMs/.
During the webinar, it was asked to comment on statements made by the Prime Minister A.K.Kariņš in the media this week about the impact on Latvenergo from the initiative to cancel the electricity generation support scheme. In response to this question, we would like to inform that if the draft amendments to the Electricity Market Law were passed in its current wording, as already stated in Latvenergo Unaudited Financial Statements for 2019, it would impact the Latvenergo Group's profit and the asset value. The main idea of the draft amendments to the Electricity Market Law is to remove the mandatory procurement component payment for the electricity end consumers. For comparison, according to the unaudited financial results of 2019, the profit of Latvenergo Group is 94.4 million EUR, while the annual capacity support for both Latvenergo CHPPs is only 24 million EUR or approximately 15% of total mandatory procurement costs for 2019. In addition, we emphasize that the financial position of the company is stable, which is indicated by financial indicators (see Latvenergo Unaudited Financial Statements for 2019), as well as an investment grade credit rating assigned by Moody's at Baa2 level with a stable future outlook.
Information about the financial indicators and coefficients used by Latvenergo Group is available in Latvenergo Consolidated and Latvenergo AS Unaudited Condensed Financial Statements for 2019 section "Formulas".
Latvenergo thanks all participants, who joined the webinar, and encourages everybody to follow company's announcements to get information about the next webinar!
Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and seven subsidiaries - Latvijas elektriskie tīkli AS (lease of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.