Audited financial statement of 2011 and Corporate governance report

Latvijas Gaze 

28.04.2012 13:35
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In 12 months of 2011, The Joint Stock Company 'Latvijas Gāze' (hereinafter -
LG) sold to the consumers 1, 56 billion m3 of natural gas. In comparison with
the respective period of 2010, natural gas sales decreased by 13%. 

The decrease of natural gas sales stemmed from the relatively high air
temperatures in the 4th quarter of 2011, as well as the investments of heat
supply companies in the use of renewable energy sources and partial replacement
of fossil fuels with woodchip. For several years already, the natural gas
purchase prices set for Latvia have reached the level of the natural gas market
of European countries, and in 2011 they were only influenced by changes in oil
product quotations at the stock exchange, currency rates and gas supply flows. 

The gas injection season at the Inčukalns Underground Gas Storage Facility
began on April 26, 2011 and was completed on October 18, 2011, reaching the
active gas volume of 2.3 billion nm3 at the end of the injection season. 

In 2011, the Company sold natural gas and provided services to customers for
LVL 353 million (EUR 503 million), which does not significantly differ from the
net turnover of 2010. 

The changes in the structure of net turnover resulted from changes in the
natural gas sales volume and the natural gas sale price, as well as the
increased efficiency of usage of the Inčukalns Underground Gas Storage
Facility. 

During 2011, the natural gas sale end-user tariffs for the natural gas
consumers also changed due to tax changes, because as of July 1, 2011 the
reduced VAT rate for natural gas supplied to households was revoked, while
natural gas used as fuel was applied an excise tax of 12 LVL/thsd. nm3 (17.1
EUR/thous.nm3). 

The Company completed the year 2011 with a net profit of LVL 25.7 million (EUR
36.6 million), which is LVL 0.1 million (EUR 0.1 million) or 0.4% below that of
2010 - LVL 25.8 million (EUR 36.7 million). The net profitability of business
activity was 7.3% in 2011 and 2010. 

In 2011, the Company invested LVL 17 million (EUR 24 million) in the
modernization of the gas supply system and the creation of new fixed assets.
29% of the total investment was spent on the modernization of gas transmission
pipeline system, 39% - on the improvement of operation safety and the
modernization of equipment at the Inčukalns UGS, and 25% - on the expansion of
distribution networks and the renewal of fixed assets. The total number of
gas-enabled objects at the end of the year reached 442.6 thousand. 

Vinsents Makaris
Phone + (371) 67 369 144
E-mail: IR@lg.lv
News Source: NASDAQ OMX



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Language:     English
Company:      Latvijas Gaze
              
               
              Latvia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         LV0000100899
WKN:          
 
End of Announcement                             DGAP News-Service
 
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