LATVIA: Latvenergo bigger in Baltics, more popular at home27.06.2012, 10:37
The Latvian state-owned power utility Latvenergo can report success both in Latvia and in the Baltics. It has been increasing its market share in Estonia and Lithuania, whereas in Latvia its reputation has recovered from the rather devastating blow it received in 2010 when its top management was arrested on corruption charges (see no 298 page 10).
In 2011, the company sold 8.9 TWh of electricity. It is slightly less than the Estonian power utility Eesti Energia, which managed to sell 10.7 TWh, but a lot better than the Lithuanian power utility Lietuvos Energija, which sold about 4.5 TWh.
The company also reports that its market share in Estonia reached 7%, up from 2% in 2010. In Lithuania, it grew to 18% (5% in 2010).
It sold 6.68 TWh in Latvia, reaching a 94% market share. The amount is down from 6.9 TWh in 2010.
53% of all the power generated by Latvenergo comes from its array of hydroelectric power plants, which constantly places Latvia among the top European countries for renewable energy.
This has allowed the company to increase its turnover to LVL 681.8m, 20% up from 2010. Latvenergo credits increased turnover with its improved Baltic sales. Its profits, however, are down, reaching LVL 43.8m (LVL 44.3m). The company will pay out almost LVL 40m of its profits in dividends to the state of Latvia.
Meanwhile, its daughter company, the Latvian power grid operator Sadales tikls reached an EBITDA of LVL 0.8. This is notable because it is the first time the company makes an operational profit. Its total balance sheet is still in the red, though: its losses reached LVL 13.5m.
Finally, the company has recovered from its reputation drop. Back in 2011, it had dropped to 38, 20 places down, in the annual Reputation Top 150 of Latvian companies. This year, it shows the biggest hike among all Latvian companies, reaching the fifteenth place.