Financial statments

The annual accounts of the company show that the profit of the Latvian electric power transmission system operator, AS Augstsprieguma tīkls (hereinafter – AST), reached EUR 7.07 million in 2019, of which EUR 1.74 million will be paid as dividends to the state.

The turnover of AST during the reporting year was EUR 184 million, which is EUR 9 million less than the year before. Income from the electric power transmission network services amounted to EUR 72.8 million, or 39% of turnover. Last year, a significant share (46%) of the total revenue of the Company was generated by the revenue from the reconstruction of the transmission assets and construction works of AS Latvijas elektriskais tīkls. The decrease in net turnover is related to the decrease in income from congestion charges.

When evaluating the indicators of AST’s financial performance and operating results, it should be taken into account that electricity transmission is a regulated sector; the Public Utilities Commission determines the allowed profit of AST, determining the rate of return on capital and approving tariffs for electricity transmission system services. The Company's profitability from the provision of electricity transmission services in 2019 is appropriate to the one set in the Electricity transmission system services tariff methodology.

The profits and fixed asset returns, rising from 6.6% in 2018 to 10.1% in 2019, are related to the dividends received from AS Conexus Baltic Grid for the 2018 reporting year. The 2019 annual accounts of AST were prepared in accordance with the international financial accounting standards.

+Main operational indicators

When evaluating the indicators of AST’s financial performance and operating results, it should be taken into account that electricity transmission is a regulated sector; the Public Utilities Commission determines the allowed profit of AST, determining the rate of return on capital and approving tariffs for electricity transmission system services.

  2015 2016* 2017** 2018 2019
Financial indicators
Revenue, thous. EUR 124 776 116 789 158 862 193 866 184 742
EBITDA*, thous. EUR 669 1 159 1 843 1 642 40 515****
Profit, thous. EUR 173 352 309 4 677 7 067
Total amount of assets, thous. EUR 107 188 114 697 188 722 193 000 221 934
Equity, thous. EUR 8 466 8 661 8 499 70 344 69 956
Net cash flow from operating activities, thous. EUR 30 965 5 613 38 645*** 7 216 20 422
Financial ratios
Liquidity total ratio 4.9 5.3 1.3 3.8 1.1
EBITDA Profitability 0.5% 1.0% 1.2% 0.8% 22.0%
Return on Equity (ROE) 2.0% 4.1% 3.6% 6.6% 10.1%
Return on Assets atdeve (ROA) 0.2% 0.3% 0.2% 2.5%  
Operational indicators
Electricity transmitted to users in Latvia, GWh 5 803 5 822 5 807 6 051 6 012
Average number of employees 513 525 539 548 552

*Since 2016 - in accordance with International Financial Reporting Standards

** In the reporting period, the Company’s liquidity ratio was affected by the loan issued by the Treasury for the acquisition of the shares of AS Conexus Baltic Grid. Under the Cabinet decisions of 5 December and 19 December 2017, in 2017, the Company acquired 34.36% of the shares of Latvian natural gas transmission and storage system operator AS Conexus Baltic Grid. 

*** reclassified

****The increase in 2019 is related to the implementation of IFRS 16 “Leases” and the recognition of leases as amortisation of right-ofuse assets

+Unaudited condensed financial statements

We will publish interim reports:

  • For 12 months, ending on 31 December 2020 - on 26.02.2021

 

+Dividends and tax payments
Dividends

The payment of dividends is regulated by the Law on the Management of Public Shareholdings and Corporations. The profit distribution is decided by the shareholders’ meeting of JSC “Augstsprieguma tīkls”. 

Dividends paid by AST to state budget

Reporting year for which dividends have been paid 2015 2016 2017 2018 2019
Dividends, thous. EUR 155 300 247 3 598* 1 736

*including corporate income tax

Tax payments, thous. EUR
Tax year  2015 2016 2017 2018 2019
Corporate income tax 38     601 720
Value added tax 4 988 7 921 16 575 16 083  
Mandatory State social insurance contributions 2 803 3 196 3 567 4 133 4 326
Personal income tax 1 471 1 741 1 947 2 112 2 172
State risk fee 2 2 2 2 2
Company car tax 13   10 17 17
Vehicle operation tax 10 10 23 28 28
Natural resource tax 0.01        
Electricity tax 3 3 3 3 3
TOTAL TAXES 9 327 12 873 22 127 22 379 6 549
+Targeted grant from Riga City Council and the State budget