JSC “Latvijas Gaze”: Unaudited financial results of JSC “Latvijas Gaze” for 9 months of 2023

30.11.23 15:00 Uhr

Tension and uncertainty in the Natural Gas markets in the nine months of 2023 has significantly decreased compared to 2022. There are high inventory levels in the European natural gas storages (including Latvia), and natural gas prices are notably lower (in August 2023 they reached the lowest level since July 2021). Despite this, the consumption of natural gas is still low in both Latvia and elsewhere in Europe, where the decline in consumption is mainly due to low activity in the industrial sector. In addition, the fourth quarter in the natural gas markets started with significant challenges - the military conflict between Israel and Palestine, as well as the damage to the Balticconnector pipeline, have created volatility in the natural gas markets in the world, which affects both natural gas supplies and prices. Despite all the above-mentioned challenges, in the summer of 2023, JSC "Latvijas Gaze” (hereinafter - the Company) has carried out the necessary work to create additional safety and stability for its customers – all the required natural gas amount for uninterrupted supply of gas, including 2023/2024 heating season has been injected in the Incukalns underground gas storage.

The active preparation for the opening of the household market from 1 May 2023, as well as the extensive work done on retaining existing household segment customers has provided results - after the opening of the household market, the Company has retained more than 90% of the household customer portfolio compared to the number of customers at the beginning of this year.

In the nine months of 2023, the Company operated with 24.9 million EUR losses, compared to 95.4 million EUR net profit in the corresponding period of 2022. Corporate income tax payments to the State budget in the amount of 30.5 million EUR for calculated dividends to the Company’s shareholders have affected the Company’s losses. At the same time, the Company’s profit before taxes was 5.5 million EUR in the nine months of 2023, which is above the historical average – in 2022, the Company’s profit before taxes in the corresponding period was 96.5 million EUR, in 2021 the Company’s losses before tax were 169.5 million EUR, in 2020 profit before taxes was 14.6 million EUR and in 2019 losses before tax were 0.7 million EUR. As mentioned in the previous quarterly financial statements, the results of 2022 reflected the results of the economic activity of both 2021 and 2022 due to the accounting methodology of financial derivative transactions. In nine months of 2023, such situation was not observed.

The Company will publish its Unaudited Condensed Financial Statements for financial year 2023 on 1 March 2024.