In the first half-year of 2022 Latvenergo JSC operated with turnover of EUR 744.582 million, which is 66.2% more when compared to the same period of 2021. The company’s profits increased 2.5 times, reaching EUR 141.905 million, according to the information Latvenergo provided Nasdaq Riga exchange.
The turnover of Latvenergo’s parent company had doubled in the first six months of 2022, reaching EUR 473.714 million. Profits reached EUR 151.589 million, which is 2.1 times more when compared to the same period of 2021.
Latvenergo’s representatives say the increase of the company’s profits are mainly related to higher prices for electricity and natural gas.
Prices on energy markets continued increasing in the first half-year of 2022. The price of natural gas increased approximately 4.6 times, whereas the price of electricity in Baltic States tripled when compared to the same period of 2021.
Latvenergo representatives say that the company’s profits are diverted towards dividends, which are paid to the state budget.
This year’s dividends will be paid in the amount of EUR 70.2 million, whereas next year’s dividend amount is expected to be no lower than EUR 56.8 million.
In the first half-year of 2022 Latvenergo produced 2 253 GWh of electricity, which is 20.3% less when compared to the first six months of 2021. The company also produced 1 092 GWh of heating energy, which is 13.3% less when compared to last year.
The total volume of investments of Latvenergo in the first six months of 2022 was nearly equal to the same period of last year, reaching EUR 56.2 million. 70% were invested into assets of the transmission networks. Reconstruction of Daugava HES equipment continued. The total investment volume reached EUR 197.3 million there.
The company’s financial account indicates that, after assessing possible risks related to Russia’s invasion of Ukraine, amendments were made by the Latvian government to the Energy Law on 21 April 2022. These amendments state that Latvenergo is to organise energy reserves worth 1.8-2.2 TWh on behalf of the state.
Although the situation on the gas market in Europe remains tense, Latvenergo performed a timely procurement of gas to secure the necessary volume for state reserves.
In the first six months of Daugavas HES has produced 1 969 GWh of electricity, renewable energy reaching 88% of the total volume of electricity produced in total. Daugavas HES power output was 5% higher when compared to last year’s period.
Latvenergo’s thermal electric power plants produced 71% less electricity when compared to last year or 269 GWh.
This is explained with high prices for natural gas and CO2 quotas.
In the first half-year of 2022 there was an increase for the number of electricity and natural gas users – 8% and 20% respectively. With that the number of the company’s electricity users is around 790 000. Approximately 140 000 of them are outside Latvia. The number of natural gas users registered with the company exceeds 20 000.
In the first half-year of 2022 the volume of electrical energy sold by Latvenergo in Baltic States was 2 643 GWh and the volume of natural gas was 518 GWh.
The number of contracts for the sale of solar panels and solar parks in Baltic States has increased almost nine times, exceeding 3 400.
Also read: Wind turbine parks in Latvia may start producing electricity in 2026