AB Klaipėdosnafta preliminary revenue for the April 2020
AB Klaipėdosnafta, (further the Company) reviewed operating segments since the beginning of the second quarter of 2020 and presents revenue disclosures accordingly. The following operating segments of the Company are:
Oil terminals activity, that includes Klaipėda oil terminal and Subačius oil terminal,
Regulated LNG activity in Klaipėda and Commercial LNG activity, that includes small-scale LNG reloading station in Klaipėda and Business development projects.
The preliminary sales revenue of the Company’s oil terminals for the April 2020 comprised EUR 3.1 million and is higher by EUR 0.7 million or by 29.2 per cent compared to April of 2019. The preliminary sales revenue is higher due to increase of light fuel oil transshipment volumes, if compared to the same period of 2019. The preliminary sales revenue of the Company’s oil terminals for the first four months of 2020 comprised EUR 10.7 million, i.e. higher by 0.9 per cent, compared to the same period of 2019.
The preliminary sales revenue of the Company LNG terminal for April 2020 comprised EUR 3.4 million (during the same month of 2019 – EUR 5.8 million). LNG terminal revenue consists of the regasification tariff fixed part (for booked annual capacities), variable part for amount of regasified LNG and reloading revenue from regulated activities. The level of Klaipėda LNG terminal revenue (for booked annual capacities) does not depend on regasification volume. Revenue is confirmed by the National Energy Regulatory Council (NERC) based on the approved methodology of State regulated prices in the natural gas sector and is calculated for the whole upcoming year. The preliminary sales revenue of LNG terminal for the first four months of 2020 decreased by 37.8 per cent due to the reduction of security supplement of Klaipėda LNG terminal by 42 per cent from the 1st January of 2020.
The preliminary sales revenue of the Company’s Commercial LNG activity for the April 2020 comprised EUR 0.2 million. If compared to the respective period last year, the preliminary sales revenue is higher due to Business development projects consultation revenue and increase of small-scale LNG station revenue. The preliminary sales revenue of the Company’s Commercial LNG activity for the first four months of 2020 comprised EUR 1.0 million.
Total preliminary sales revenue of the Company for the January-April 2020 amount to EUR 26.5 million and is lower by 23.2 per cent compared to the same period of 2019 – EUR 34.5 million.
Comment by the Company management:
Despite the continuous unfavourable trends in international markets due to COVID-19 impact and historically low oil prices, in April KN maintained stable volumes of operations, which had a positive impact on the sales revenue of each business segment. The main factor, which influenced the total Company‘s revenue result in January-April, 2020, was lower revenue of Klaipėda LNG terminal, following from the KN decisions, adopted in 2019, to optimize Klaipėda LNG terminal costs and reduce the cost of LNG terminal infrastructure for consumers, starting from 2020 annually.