KN’s results boosted by transhipment volumes and focus on efficiency
2023-02-27 | Company news
In 2022, loading volumes at KN oil terminals increased by 17% compared to the 2021 result. The company’s liquefied natural gas (LNG) terminal in Klaipėda showed record results, with 96% more natural gas regasified in 2022 - 32 TWh in total – compared to the previous year. International LNG’s business development activities in 2022 saw a growing demand for consultancy services, and KN was selected to provide LNG terminal management services for the Wilhelmshaven LNG terminal.
According to unaudited figures, the KN Group generated revenues of EUR 77.8 million in 2022 (previous year’s revenues amounted to EUR 61.8 million). The Group’s consolidated EBITDA in 2022 was EUR 35.5 million (EUR 26.1 million a year earlier). The net loss of the KN Group amounted to EUR 5.5 million in 2022 (EUR 64 million in 2021), while the adjusted net profit reached EUR 9.3 million, compared to an adjusted net loss of EUR 47.2 million recorded in 2021.
“We have made a significant breakthrough in the oil segment over the last couple of years. We currently work with 14 different oil and petrochemical products at the oil terminal, and we have also increased our revenues by successfully leasing oil storage capacity to customers. Overall, the change in the geopolitical situation has made Klaipėda an important import area for oil products in the region and in Central Europe, including Ukraine, and this is reflected in our performance”, says Darius Šilenskis, KN CEO.
The CEO of KN points out that in 2022, energy prices, which have become a real headache for many businesses, were also a serious challenge for KN’s operations as the transhipment operations at the oil terminals are energy intensive. The energy efficiency measures initiated by the company have in some cases reduced the demand for electricity or thermal energy by as much as one third, which has helped to manage variable operating costs.
Demand for Klaipėda LNG terminal services has increased significantly as countries in the region have started to look for alternatives to natural gas imports following Russia’s war on Ukraine, and the LNG terminal has been operating at virtually maximum capacity since April 2022. A record 32 TWh of natural gas was regasified during the year and 54 LNG carriers were received.
“We are pleased that in such turbulent times we have managed to ensure smooth operation of the LNG terminal, which meets the needs of the regional market, and Klaipėda has become a real LNG service centre in the region and the main alternative for natural gas imports. Equally important is that we have managed to implement a long-term capacity allocation mechanism. This ensured that in the long term, each user would contribute to the maintenance of the LNG terminal, thus allowing us to reduce maintenance costs for gas consumers in Lithuania. The KN’s share in the security component has been zero since May last year, and for 2023, the security component has been pretty much eliminated, as the regulator has set the total security component to zero”, stresses the head of the KN, pointing out that last year the LNG terminal project implemented in Klaipėda has become an example for other Western European countries seeking to strengthen their energy independence.
Looking ahead to 2023, the main focus is the renewal of KN’s long-term strategy, which will cover the period 2023–2050, but will be split into three distinct phases: short-term (2023–2030), or the evolution of the current situation; medium-term (2030–2040), which will concentrate on KN’s role in the transitional energy market, and long-term (2040–2050), which will cover the company’s business planning towards full climate neutrality. The long-term strategy will need to cover the existing core activities of KN as well as new business directions such as hydrogen and alternative energy carriers, carbon capture and storage, etc.
“In a geopolitical and macro-economic context that is likely to remain unchanged, the ability to seize international opportunities, ensuring operational profitability, business continuity, managing energy and other variable costs, and focusing on environmental sustainability will remain the focus in 2023. At the same time, we have embarked on a process of renewing our strategy, which should lead to a transformation of the company, a strengthening of our competitiveness and a more profitable future for our operations. Developing and launching this strategy will be one of the most important tasks this year”, says Darius Šilenskis, CEO of KN.
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