AB Klaipedos nafta unaudited financial information for the nine months of 2023

AB Klaipedos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for the nine months ended 30 September 2023.

Key financial indicators for the first 9 months of 2023:

Management comment:

Regulated LNG activities revenue for the 9 months of 2023 reached EUR 37.3 million and is higher by EUR 3.9 million or 11.5% compared to the same period of 2022 (EUR 33.5 million). The main reasons: (1) higher regasification revenue by EUR 12.9 million due to increased demand and regasification tariff from 1.19 EUR/MWh (till May 2022 – 0.41 EUR/MWh) in 2022 to 1.41 EUR/MWh in 2023; (2) higher LNG reloading revenue by EUR 0.8 million; (3) other LNGT revenue is higher by EUR 1.0 million mainly due to payments from the clients for the unused allocated capacity; (4) lower revenue from the fixed part of LNG regasification service fee by EUR 10.8 million due to implemented LNG terminal long-term capacity allocation and tariffication model in 2022, KN share in security supplement from May 2022 could be reduced to 0 EUR/(MWh/day/year), given the current volume of activities of the LNG terminal.

Revenue from commercial LNG activities for the nine months of 2023 amounts to EUR 5.2 million and is higher by 35.4% compared to the same period in 2022 (EUR 3.8 million). Commercial LNG activities consist of business development projects including LNG terminal operator services provided at the Port of Açu in Brazil and LNG reloading station in Klaipeda.

Revenue from liquid energy terminals for the nine months of 2023 amounts to EUR 21.1 million and is higher by 9.8% compared to the same period in 2022 (EUR 19.2 million). 2023 1-9 months revenue growth in comparison with the same period of 2022 was primarily influenced by increased liquid energy product tank capacity allocation for handling gasoline, diesel (esp. dedicated to Ukraine) and biofuels. For the 9 months of 2023 Klaipeda liquid energy terminal transshipment volumes remained nearly the same as in the 9 months of 2022.

During 9 months of 2023, the same as during 2022, the Group‘s and the Company‘s net profit was significantly affected by unrealized currency exchange losses and by the reduction of LNG security supplement from 1 January 2020 by EUR 26.8 million per annum. The unrealized impact of exchange rates arose from the 1 January 2019 under the requirements of IFRS 16 "Lease”, according to which the Company recognizes 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.

Enclosed:

1. Condensed Consolidated and Separate Financial Statements of AB Klaipedos nafta for 9 months period ended 30 September 2023.
2. Presentation of the unaudited financial results of the Group for the 9 months period of 2023.

Vaidotas Dirmeikis, Head of Finance department, acting CFO, +370 46 391772

Attachments

• KN IFRS Q3 2023
• KN_activity results for_Q3 2023