Diversification of services and investments in increasing flexibility and efficiency in the liquid energy product terminal segment, a high utilisation rate of the managed LNG infrastructure in Lithuania and a breakthrough in international LNG projects have led to strong financial results of AB KN Energies (KN) in 2023.

According to unaudited data, in 2023, the KN Energies (KN) Corporate Group received EUR 83.5 million in revenue, or 7.3% more revenue than the corresponding year before. The Group’s net profit in 2023 was EUR 13.2 million, while a loss of EUR 5.9 million was recorded a year ago.

“Last year's results reflect our long-term efforts in transforming the company – ensured control of energy costs, operational emissions, diversified portfolio of activities in liquid energy product terminals, focused attention on LNG business development in international markets. Decisions made and continuous efforts to increase operational efficiency and excellence paid off and allowed us to work profitably,” comments Darius Šilenskis, CEO of KN Energies.

In 2023, KN was able to maintain the volume of activity in the segment of liquid energy products at a similar level as in 2022, when at that time the cargo volumes of other competing terminals in the Baltic States fell. Klaipėda Liquid Energy Terminal's share of the regional cargo market is estimated to have grown to 43% last year.

During 2023 the Company’s Klaipėda and Subačius Liquid energy terminals transshipped 4.1 million tons of liquid energy products, i.e. 3.5% than in 2022. Despite slightly lower loading, the net profit of this segment was EUR 1.2 million higher than in 2022 due to increased income related to product storage services.

In 2023, demand for the rental of liquid energy storage tanks for the handling and storage of diesel and biofuels increased significantly. Rental income from dedicated tanks for these products grew by almost one third last year compared to the 2022 result. Biofuel transshipment volumes also intensified, which were 21% higher than in 2022, which was mainly influenced by growing ethanol loading volumes. Transhipment of bitumen grew by 18%, and transshipment flows in Klaipėda liquid energy terminal tanker truck station increased by 7%.

The loading and storage of diesel intended for Ukraine’s needs continued successfully last year, effectively employing the leased infrastructure of the Marijampolė terminal.

“Gas and electricity prices, which decreased last year, also allowed us to breathe a little easier. Since loading operations carried out in liquid energy product terminals are intensive in energy resources, the reduction of their prices and the energy efficiency measures initiated by the company allowed to reduce the variable costs of this segment by EUR 2.9 million”, – says D. Šilenskis.
 
In the commercial LNG segment, the sales revenue of the KN Group in 2023 amounted to EUR 6.9 million and was 27.4% higher than in 2022. The operational results of this segment was influenced by the increased demand in global markets for consultancy services in developing LNG terminal projects as well as the successful addition of the portfolio of international LNG projects.

Last year, KN assisted customers in Italy in the implementation of the greenfield Pjombino LNG terminal project, providing assistance in the installation, start-up, commissioning and equipment testing of the storage vessel.

The successful conclusion and implementation of commercial operator service contracts in Germany also significantly contributed to the breakthrough in the activity of this segment. KN currently provides commercial operation services for four floating LNG terminals in Germany.

“This year, we will continue to consistently adhere to our strategic direction of being the first choice for customers developing LNG terminals worldwide. I believe that the competences accumulated during the development of Klaipėda’s LNG value chain, the operational experience gained in  the Brazilian port of Açu and the efforts made in the German market will help us to further expand our participation in FSRU-based LNG projects”, – notes D. Šilenskis.

The Klaipėda LNG terminal last year continued to maintain a high level of occupancy compared to other terminals of this type in Europe. In 2023, the average utilization of the Klaipėda LNG terminal was 71,4% (a year ago – 72%). In comparison, the average European utilization of LNG terminals in 2023 was 59%.

In 2023, a record amount of natural gas, 34 TWh, was regasified and reloaded at the Klaipėda LNG terminal (32,4 TWh in 2022). With the introduction of cost-based pricing for the LNG terminal in 2022 and the allocation of long-term capacity, Klaipėda LNG terminal collects about half of its revenues from customers abroad.

With the introduction of cost-based pricing for the LNG terminal in 2022 and the allocation of capacity for the long term, Klaipėda LNG terminal collects about half of its revenues from customers abroad, which for the second year in a row result in a zero share of the KN in the LNG security supplement.

D. Šilenskis notes that that the company's long-term strategy, which was drawn up and approved last year, and the solid foundations laid last year allow us to expect optimistic business prospects for this year as well: “We will continue to strive for commercial and operational excellence in all areas of our activities.  We will focus on the directions and goals set in our new operational strategy. We will look for opportunities to start activities in the field of new renewable types of energy (hydrogen carriers, capture and transport of carbon dioxide emissions), both contributing to the regional energy transformation and achieving a neutral impact on the climate, while making a clear commitment to transform our activities in order to achieve the set sustainability goals”.

KN is an international energy terminal operator that provides safe and reliable flows of liquid energy, loading of chemicals and raw materials for consumers of the Baltics region, while providing clients around the world with the knowledge and skills to develop infrastructure projects of sustainable energy. The company currently operates three terminals for liquid energy products in Klaipėda, Subačius, and Marijampole, and is the operator of liquefied natural gas (LNG) terminals in Lithuania and Brazil. KN also provides commercial operation services for four floating LNG terminals of Germany.