AB Klaipedos nafta unaudited financial information for the six months of 2022

AB Klaipedos nafta (hereinafter – KN, the Company) announces the unaudited consolidated (hereinafter – the Group) and separate financial results for the six months ended 30 June 2022.

Key financial indicators for the first half year of 2022:

Management comment:

During 6 months of 2022, the same as during 2021, 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.

Regulated LNG activities revenue for 6 months of 2022 reached EUR 21.8 million and is higher by EUR 3.9 million or 21.8% compared to the same period of 2021 (EUR 17.9 million). The main reasons: (1) higher regasification revenue by EUR 6.9 million due to increased demand and regasification tariff from 0.41 EUR/MWh to 1.19 EUR/MWh; (2) received revenue related to the Natural Gas consumer’s liability for previous periods after the court decision in amount of EUR 1.1 million; (3) higher revenue by EUR 0.5 million due to recalculated actual consumption capacities of previous period; (4) lower revenue from the fixed part of LNG regasification service fee by EUR 4.6 million due to implemented LNG terminal capacity allocation and tariffication model when KN part in security supplement from May 2022 was decreased to 0 EUR/MWh/day/year.

Revenue from commercial LNG activities for the six months of 2022 amounts to EUR 2.5 million and is lower by 13.4% compared to the same period in 2021 (EUR 2.9 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 Klaipeda.

Revenue from oil terminals for the six months of 2022 amounts to EUR 11.6 million and is higher by 7.7% compared to the same period in 2021 (EUR 10.8 million). Company's oil terminals income for the 6 months of 2022 were affected by gradual easing of restrictions for traveling (settled due to COVID-19 pandemic) in major part of the countries and robust demand for fuels as well as geopolitical factors - lowering oil product availability in the market from one of the key suppliers – Russia (caused by restrictions due to war in Ukraine) led to regional and global oil product tightness, soaring oil product prices and increasing European refiners’ production demand, refining margins growing to new post-pandemic highs. The Company has also successfully diversified the portfolio of transshipped products.

Enclosed:

1. Condensed Consolidated and Separate Financial Statements of AB Klaipedos nafta for 6 months period ended 30 June 2022.
2. Presentation of the unaudited financial results of the Group for the 6 months period of 2022.

Mindaugas Kvekšas, Chief Financial Officer, +370 46 391772

Attachments

• AB Klaipedos nafta IFRS EN Q2 2022
• KN_activity results for 2022 Q2