JSC “Latvijas Gaze”: Unaudited financial results of JSC “Latvijas Gaze” Group for 6 months of 2023

30.08.23 15:00 Uhr

Compared to the record high prices in 2022, a significant drop in Natural Gas prices has been observed both in Latvia and in Europe in the first half of 2023. Although under normal market conditions, a drop in prices would result in an increase in natural gas consumption, both in Latvia and in Europe, a decrease in demand for natural gas can still be observed. JSC "Latvijas Gaze” experience that has been accumulated over the years and extensive knowledge of the natural gas market in Latvia and Europe plays an important role in such market conditions. As a result, despite all the challenges, Latvijas Gaze Group has achieved strong profit figures, as well as continued its operations, ensuring an uninterrupted supply of gas to its customers. In addition, as of 30 June 2023, JSC "Latvijas Gaze" has contracted all the necessary natural gas supplies for the upcoming heating season, which provides additional security and stability for customers.

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, JSC "Latvijas Gaze" has retained more than 90% of the household customer portfolio

Latvijas Gaze Group’s net profit in the first half of 2023 reached 12.5 million EUR, which was 85% lower compared to the corresponding period of 2022, when the net profit was 84.5 million EUR. The significant decrease in profit can be explained by the fact that the result of the economic activity of the first half of 2022, due to the accounting methodology of financial derivative transactions, actually reflected the results of the economic activity of both 2021 and the first half of 2022. However, in the first half of 2023 such situation was not observed. At the same time, the profit in the first half of 2023 is above the historical average – in 2021, Group’s net profit was 5.4 million EUR, in 2020 it was 16.6 million EUR and in 2019 it was 2.7 million EUR.

JSC "Latvijas Gaze" subsidiary JSC "Gaso" has reached 5.7 million EUR net profit in the first half of 2023, which is 35% higher compared to the first half of 2022.