“Latvijas gāze” has operated with a loss of EUR 24.924 million in nine months

The net turnover of AS “Latvijas gāze” (LG) concern in the first nine months of this year was 120.544 million euros, which is 78% less than in the corresponding period last year, but the losses reached 24.924 million euros, as opposed to the profit last year, according to the company’s statement to the stock exchange “Nasdaq Riga” .

The company’s management report states that the tension and uncertainty in the natural gas markets in the nine months of 2023 has significantly decreased compared to 2022. European natural gas storages, including in Latvia, have high inventory levels, and natural gas prices are significantly lower.

Despite this, natural gas consumption is still low – according to the data published by the Central Statistical Office, the amount of natural gas consumed in Latvia decreased by 6.9% in the nine months of this year compared to the corresponding period last year. A drop in consumption was also observed elsewhere in Europe, 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, LG explains.

Despite all the above-mentioned challenges, in the summer of 2023, LG has carried out all the necessary works to create additional security and stability for customers, including the Inčukalnas underground gas storage (PGK) has pumped all the necessary amount of natural gas reserves to ensure continuous gas supply, including in 2023. / during the 2024 heating season.

A management report said that after the opening of the household market in May this year, LG has retained more than 90% of its household customer portfolio compared to the number of customers at the beginning of this year.

The impact of the company’s economic activities is still being affected by the Cabinet of Ministers’ regulations “On the supply of energy users during early warning and alarm level announcements”, which imposed the obligation on the public trader to maintain stocks of Inčukalna PGK in the amount of 1150 gigawatt hours (GWh) for the supply of related users in the period from 10 August until April 30, 2023.

Due to these regulations, LG had 236 GWh of natural gas on its balance sheet as of April 30, which was reserved only for household supply and could not be resold to other customers at prices corresponding to the market level, despite the actual reduction of the volume required for the gas supply needs of related users by 20% both in 2022 ., both in 2023, compared to the average consumption of the previous three years.

It has already been reported that LG’s turnover in 2022 was 702.604 million euros, which is 32.5% more than in 2021, but the company’s profit increased several times and reached 40.824 million euros.

LG’s largest shareholders are Russia’s Gazprom (34%), SIA “Energy Investments” owned by LG management members Aigars Kalvītis, Elitas Dreimanes and Egīlas Lapsali (28.97%), German company “Uniper Ruhrgas International GmbH” (18.26% ) and SIA “Itera Latvija (16%).