AB Klaipėdos nafta unaudited financial information regarding the nine months of 2021

AB Klaipėdos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for nine months ended 30 September 2021.

Main financial indicators of the Group comparing 9 months of 2021 and 2020:

	Financial results for 9 months of 2021	Change, compared to 9 months of 2020	Adjusted* results for 9 months of 2021	Change, compared to 9 months of 2020
Revenue	46.3 million EUR	- 23.8%	46.3 million EUR	- 23.8%
Net profit (loss)	- 54.8 million EUR	- 79.0 million EUR	- 44.2 million EUR	- 56.1 million EUR
EBITDA	20.3 million EUR	- 46.6%	20.3 million EUR	- 46.6%

Main financial indicators of the Company comparing 9 months of 2021 and 2020:

	Financial results for 9 months of 2021	Change, compared to 9 months of 2020	Adjusted* results for 9 months of 2021	Change, compared to 9 months of 2020
Revenue	44.0 million EUR	- 24.8%	44.0 million EUR	- 24.8%
Net profit (loss)	- 55.5 million EUR	- 79.1 million EUR	-44.8 million EUR	- 56.1 million EUR
EBITDA	19.3 million EUR	- 48.1%	19.3 million EUR	- 48.1%

* 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. As the Group and the Company changed adjusted figures calculation method in 2020, comparative figures were adjusted accordingly.

Management comment:

During nine 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 1^st 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 nine months of 2021 is EUR 26.6 million and is lower by EUR 6.1 million or 18.7% compared to the same period of 2020 (EUR 32.7 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 1.9 million for January - September 2021 (2) LNG security supplement level set by NERC for nine months of 2021 is lower in EUR 1.1 million compared to the same period of 2020; (3) regasification revenue lower in EUR 2.0 million during nine months of 2021 vs 2020; (4) lower fixed part amount in EUR 1.5 million has been collected during 9 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 nine months of 2021 is EUR 4.2 million and is EUR 0.1 million lower compared to the same period in 2020 (EUR 4.3 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 nine months of 2021 is EUR 8.3 million lower compared to the same period in 2020. KN has recognized an impairment for the assets of Klaipėda’s oil terminal in amount of 51 MEUR as at 31 August 2021 and a respective deferred income tax asset impact of 7.6 MEUR. 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 9 months period ended 30 September 2021 amounts to 43.1 MEUR. The volume of biofuels transshipped at KN continued to grow successfully – during 9 months of 2021 handling increased by 38% compared to the same period last year. KN has extended the existing fuel oil storage contracts and concluded new ones for the storage of ethanol. The testing of bitumen transshipment has been successfully performed in Klaipėda oil terminal. The first bitumen cargo is planned to be loaded to ship during last quarter of 2021.

Enclosed:

1. Condensed Consolidated and Separate Financial Statements of AB Klaipėdos nafta for 9 months period ended 30 September 2021.
2. Presentation of the unaudited financial results of the Group for 9 months period of 2021.

Mindaugas Kvekšas, Chief Financial Officer, +370 46 391772

Attachments

• KN IFRS Q3 2021
• KN_activity results for_2021_Q3

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.