Klaipėdos Nafta (KN) made a net profit of €2.9 million for Q3 2020, which was up 27% on the previous quarter.
For the first nine months of this year, the KN Group earned €9.7 million adjusted net profit, which was 7.8% higher than in the corresponding period a year ago.
In a statement issued on Friday (30 October), the Lithuanian company said that: ‘Although 2020 has been a year of business challenges, even in these circumstances, KN has achieved higher operating profitability than in previous periods.’
KN said that it managed to improve its result, even though its oil business has been ‘affected this year by oil refining margins still at historic lows, geopolitical circumstances, as well as the global coronavirus pandemic, which has reduced demand for oil products worldwide’.
Darius Šilenskis, CEO of KN, commented: ‘In April-June, full of challenges and uncertainties, which were strongly affected by the coronavirus pandemic and the correspondingly slow recovery of market participants’ expectations, we stabilised revenues and increased our profitability in the third quarter. We see that the biggest impact on the overall financial result of KN’s operations is made by the reduction of the LNG security component – by excluding this factor, we have been able to focus on operational efficiency and achieve higher adjusted net profit if compared to the same period last year.’
KN said that global trends this year have also led to ‘a significant increase in the demand for liquefied natural gas’ – and this has been reflected in the 27% increase in regasification at the company’s LNG terminal during the first 9 months of this year, reaching 16.4 TWh this year.
Šilenskis commented: ‘This week, the LNG terminal has just started its seventh year of operation. We meet this symbolic time stamp with great optimism – the LNG terminal in Klaipėda is among the most efficient commercial LNG terminals in Europe, more than 70% of the gas imported into the country this year was supplied through the infrastructure we manage. The potential is really great, both in terms of energy interconnection projects being developed in the region and in terms of small-scale LNG operations, which are being driven by the goals of a climate-neutral economy in the EU,” emphasizes the CEO of KN.’
KN said that its commercial LNG activities earned €4.3 million in 2020 so far, which ‘exceeded its expectations’.
Šilenskis concluded: ‘The rest of 2020 will also not be very easy for all business organisations. The new wave of COVID-19 is taking place around the world, which will continue to affect the expectations of the public and market participants, as well as the performance of individual segments of KN operations. The KN Group will continue to focus on ensuring a safe working environment for its employees and a correspondingly high quality of service for customers. Managing operational risks and ensuring business continuity in the context of the coronavirus pandemic will remain among the highest priorities of our activities.’