Energy, Gas, Gas Market , Good for Business, Latvia

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 17:37

Turnover of Latvijas Gaze natural gas utility up 38.9% in H1

BC, Riga, 22.08.2019.Print version
Latvijas Gaze natural gas concern in the first six months of this year posted EUR 195.2 mln in turnover, up 38.9% from the respective period last year, while the company’s profit was EUR 2.721 mln, according to the Nasdaq Riga stock exchange.

Latvijas Gaze parent company in the first six months posted EUR 170.066 mln in sales, up 50.3%, and the company posted EUR 4.317 mln in loss in contrast to a profit in the respective period last year.


The company’s management reported that two main factors strongly influenced the operating environment for gas traders in Latvia and the Baltic region during the first half of 2019. Firstly, above seasonal-normal temperatures in Latvia as well as in many parts of Europe and Asia led to lower natural gas demand during the core winter months. The average air temperature in Latvia during the period January to June 2019 was 1.5 degrees Celsius higher than during the same period in 2018. Secondly, prices at European natural gas hubs collapsed. During the first six months of the year the price for the GASPOOL front month index, which serves as one of the key reference prices in the Baltic region, dropped by more than 40%. Apart from that, hub prices exhibited a strong short-term volatility including days with price movements of more than one Euro per MWh. Both the mild winter as well as the fall of market prices created significant challenges for natural gas traders in the region and Europe alike.


In the first six months of this year, Latvijas Gaze sold 755 mln cubic meters or 7.952 GWh of natural gas to more than 400,000 customers or by 54% more than in the first six months last year.

In the first six months of 2018, Latvijas Gaze concern reported EUR 140.477 mln in sales and earned EUR 21.768 mln in profit.


Latvijas Gaze group's major shareholders were Gazprom (34% of shares), Marguerite Gas (28.97 %), Uniper Ruhrgas International (18.26%), and Itera Latvija (16%). Latvijas Gaze shares are listed on the Nasdaq Riga stock exchange.






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