The annual accounts of the company approved by the shareholder meeting today 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.

Last year, AST continued working on the implementation of a number of development projects, rebuilding current transmission lines and substations, and constructing new ones. Furthermore, in accordance with the Electricity Market Law, the company worked on developing the electric power market and integrating Latvia into the internal electric power market of the European Union (EU), participating in EU activities and implementing regional projects in the Baltic states.

The 2019 annual accounts of AST (in Latvian) are available on the AST website http://www.ast.lv/lv/content/finansu-parskati.