AB Klaipėdos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for twelve months ended 31 December 2021.

Main financial indicators of the Group comparing 12 months of 2021 and 2020:

 Financial results for 12 months of 2021Change, compared to 12 months of 2020Adjusted* results for 12 months of 2021 Change, compared to 12 months of 2020
Revenue61.8 million EUR-22.8 %61.8 million EUR- 22.8 %
Net profit (loss)-63.9 million EUR-97.9 million EUR-47.1 million EUR-58.6 million EUR
EBITDA26.1 million EUR-45.9 %26.1 million EUR-45.9 %

Main financial indicators of the Company comparing 12 months of 2021 and 2020:

 Financial results for 12 months of 2021Change, compared to 12 months of 2020Adjusted* results for 12 months of 2021 Change, compared to 12 months of 2020
Revenue58.6 million EUR-24.4 %58.6 million EUR-24.4 %
Net profit (loss)-64.8 million EUR-98.3 million EUR-48.0 million EUR-58.9 million EUR
EBITDA24.6 million EUR-48.0 %24.6 million EUR-48.0 %

* Adjusted financial figures are recalculated and presented by eliminating from net profit (loss) the following amounts: (1) the impact of unrealised foreign currency exchange rates arising from IFRS 16 requirements, (2) respective impact of deferred income tax arising from unrealised foreign currency exchange rates gains/losses and (3) impact of financial derivatives.

Management comment:

During twelve months of 2021, the same as during 2020, the Group‘s and the Company‘s net profit was significantly affected by fluctuations of unrealized currency exchange rates. The unrealized impact of exchange rates arose from the 1st January of 2019 under the requirements of IFRS 16 “Lease”, which indicated the Company to capitalise finance lease obligations and the major part of them is denominated in US dollars. Whereas all US dollar denominated lease liabilities relate to LNG terminal, the effect of unrealized exchange rate is reflected in the regulated segment.

Regulated LNG activities revenue for twelve months of 2021 is EUR 34.8 million and is lower by EUR 8.6 million or 19.8% compared to the same period of 2020 (EUR 43.4 million). The main reasons: (1) the reduction of LNG security supplement income in 2021 due to proportionally recognised repayment of the excess returns (surplus) from regulated activities during the period 2014-2019 and repayment related to LNG reloading revenue for 2019, which together amount to EUR 2.6 million for January - December 2021 (2) LNG security supplement level set by NERC for twelve months of 2021 is lower in EUR 1.2 million compared to the same period of 2020; (3) regasification revenue lower in EUR 3.2 million during twelve months of 2021 vs 2020; (4) lower fixed part amount in EUR 1.9 million has been collected during 12 months of 2021 due to lower consumption capacities compared to the same period of 2020; (5) fines for unused capacity in amount of EUR 0.4 million received in 2021 (no such in 2020).

Revenue from commercial LNG activities for twelve months of 2021 is EUR 5.5 million and is EUR 0.2 million higher compared to the same period in 2020 (EUR 5.3 million). Commercial LNG activities consist of business development projects including LNG terminal operator services provided at the Port of Açu terminal in Brazil and LNG reloading station in Klaipėda.

Revenue from oil terminals for twelve months of 2021 is EUR 21.4 million and is EUR 10 million lower compared to the same period in 2020 (EUR 31.4 million). KN has recognized an impairment for the assets of Klaipėda’s oil terminal in Q3 2021 and has made a retrospective restatement in Q4 2021, resulting impairment amount of 54.2 MEUR and a respective deferred income tax asset impact of 8.1 MEUR as at 31 August 2021. Overall, the total impact (including deferred income tax asset and impact to depreciation expenses) from recognition of this impairment loss on net profit (loss) for the 12 months period ended 31 December 2021 amounts to 45.2 MEUR.

In order to make the infrastructure of the Klaipėda oil terminal more flexible and adaptable to changing market conditions, two storage tanks at the Klaipėda oil terminal were adapted for bitumen handling and commissioned in 2021. In the first week of 2022, a batch of bitumen stored in the tanks was successfully loaded to a tanker. This principle of transhipment, when a large batch of bitumen is accumulated in storage tanks and later transhipped it into the tanker is an innovation in the Port of Klaipėda.

In 2021, KN succeeded in attracting new customers and products and in launching completely new services in oil terminals. From 8 types of petroleum products at the beginning of 2021, as many as 13 different types of petroleum products, including 3 types of biofuels (RRME, ethanol, biodiesel) are currently loaded together with bitumen through the KN infrastructure. In 2021, the terminal's handling of the latter products increased significantly, with as much as 40% more biofuels being handled in 2021 compared to 2020. In 2021, the total tank truck loading at KN also increased by around 9%, i.e. slightly more than 569,000 tonnes of petroleum products were transhipped.

In 2022, the Group and the Company will continue to focus on improving operational efficiency, creating new services and higher added value, finding new opportunities in the value chain, as well as international business development.


Enclosed:

  1. Condensed Consolidated and Separate Financial Statements of AB Klaipėdos nafta for 12 months period ended 31 December 2021.
  2. Presentation of the unaudited financial results of the Group for 12 months period of 2021.


Mindaugas Kvekšas, Chief Financial Officer, +370 46 391772


Attachments

  • AB Klaipėdos nafta IFRS 2021 Q4
  • KN activity results for 2021 Q4

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