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GZE: Unaudited financial statement of 12 months of 2010
Latvijas Gaze Financial Statement Release 25.02.2011
Unaudited financial statement of 12 months of 2010
In 12 months of 2010 Joint Stock Company “Latvijas Gāze” (hereinafter - LG)
sold to consumers 1 788 million m3 of natural gas, which is by 20% more than in
the respective period of 2009 but by 24% or 348 million m3 more than it had
The increase of natural gas consumption both among industrial customers and
households over 12 months of 2010 stems from the protractedly low air
temperature in the 1st and 4th quarter and the competitive natural gas sale
price, as in the 1st quarter 2010 users were supplied natural gas purchased in
2009 from the Inčukalns Underground Storage Facility (hereinafter - Inčukalns
UGS), which was notably cheaper than the heavy fuel oil price in the market,
with oil product quotations at the exchange on their rise. In early 2009, there
was an opposite tendency as due to the high natural gas prices heat supply
companies switched to heavy fuel oil and other alternative types of fuel.
Natural gas sales were also boosted by the construction works of Russian
electricity transmission lines in the summer of 2010 when natural gas was also
used for electricity production in condensation mode.
The injection season at the Inčukalns UGS was completed on October 18, 2010,
with 2 033 million m3 of natural gas injected over its course, reaching 1 992
million m3 of active gas at the end of the season.
Over 12 months of 2010, consumers were sold natural gas and provided services
for LVL 353 million, which is by 7.2 % more than in the respective period of
2009 and by 25% more than it had been budgeted.
The Company's net profitability of business activity in 2010 was 7,3%, and LG
completed the 12 months of 2010 with a profit of LVL 26.47 million, which is by
32.5% more than in the respective period of 2009 when LVL 19.97 million were
The increase of profit was ensured by changes in demand for natural gas storage
and transportation services for the needs of other countries, changes in
natural gas sales and income from other commercial and financial activities.
Within the framework of the capital investment programme, LVL 23 million of
investment funds were taken up over the 12 months of 2010. The funds were
mostly spent on the reconstruction of gas transmission pipelines, the
modernization of technological equipment and wells, the reconstruction of
engineering buildings and constructions, the construction of new gas pipelines.
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