Last year, KN, the oil and liquefied natural gas (LNG) terminal operator, achieved high income and profitability indicators, and is not losing momentum this year as well. In January, the company reloaded 776 thousand tonnes of oil products, a growth of 24.2% compared with the load of January 2017.
Despite a complex and dynamic situation on the market, KN January load results showed a clear growth direction.
The increase in KN cargo turnover was influenced by the main client AB “Orlen Lietuva” as well as by transit cargo exporters. It should be noted that in early 2017 the load was lower because of a significant decrease in oil product flows from Belarusian oil refineries plants.
“KN terminals maintain high professional and quality standards, which are the key competitive tool. We put effort to ensure the best use of the oil products load capacities. These efforts and a more favourable geopolitical situation determined the growth of transit Belarusian cargoes in the second half the of the last year. The production volume and the load paces of our main client AB “Orlen Lietuva” have also had a positive impact on January results”, says Mindaugas Jusius, CEO of KN, when discussing the results.
According to him, a positive impact of diversified cargo sources is observed as well. The new infrastructure, the operation of which was launched in the second half of 2017, as well as the developed possibilities of the existing infrastructure have enabled the company to accept a wider range of cargoes.
“Timely technological as well as commercial decisions allow offering more attractive conditions on the market. This enhances our competitiveness in respect of other nearest terminals in the Baltic countries and helps maintain good results,” Mr. Jusius notes.
The increased load of oil products in January resulted in higher revenues: Subačius and Klaipėda oil terminals generated EUR 4.2 million in preliminary revenues, whereas in 2017, this indicator reached EUR 2.8 million.
In January 2018, KN LNG terminal supplied 253 thousand MWh to the natural gas system, whereas in January 2017, a total of 785 thousand MWh was regasified and reloaded.
The amount of the natural gas regasified and supplied to the transmission system decreased. It was influenced by a lower consumption of natural gas in the state-governed energy sector, which also depended on a relatively higher temperature in January. In addition, no reloading of LNG took place in January this year, whereas in January 2017, it amounted to 166 thousand MWh.
The preliminary data says that the LNG terminal earned EUR 5.3 million in revenues, when the same period of the last year ended with EUR 7.8 million. The revenues of the LNG terminal consist of one twelfth of the fixed part of the regasification price for annual consumption capacities, which is approved by the National Commission for Energy Control and Prices for 2018, and the variable part of the regasification price for the amount of the regasified gas.
