The successful implementation of the long-term strategy of KN Energies and the focused expansion of its activities outside Lithuania resulted in stable financial results of the Group for the first six months of 2024. In the first half of the year, KN Energies generated revenues of EUR 42.6 million, an adjusted net profit of EUR 6.3 million and EBITDA of EUR 21.7 million.
 
In January-June this year, the Group's revenue was 1% higher than in the same period a year ago (H1 2024: EUR 42.6 million; H1 2023: EUR 42.4 million), while EBITDA grew by 30% (H1 2024: EUR 21.7 million; H1 2023: EUR 16.7 million) and adjusted net profit by EUR 3 million (H1 2024: EUR 6.3 million; H1 2023: EUR 3.3 million).
 
"The first six months of this year have not only been really active, exciting and important for the future of KN Energies, but also financially stable. We welcomed 2024 by turning a new page in the company's history with the introduction of the transformational new name KN Energies, and the breakthrough in the international LNG business achieved during the half-year period has offset and enabled us to ensure stable financial results even in the face of challenging business conditions or planned operational disruptions," said KN's Chief Financial Officer Tomas Tumėnas.
 
Despite the challenging market conditions in the eastern Baltic Sea ports, which loaded 27% less liquid energy products in 1-6 months of 2024 than in the same period of 2023, KN Energies' liquid energy terminals' loading rates remained stable (H1 2024: 1.9 million t; H1 2023: 1.95 million t of liquid energy products). The revenue of this segment was EUR 405 thousand higher than in the same period last year, amounting to EUR 14.6 million. The stable revenues of this segment were supported by the growing demand for product storage services and the increase in biofuel and bitumen loading volumes.
 
It should be noted that in the first half of 2024 the variable costs of the liquid energy products segment were EUR 0.8 million lower compared to the same period in 2023. The lower costs are not only due to lower energy prices, but also to the successful implementation of internal initiatives to reduce the consumption of heat and electricity.
 
The regulated LNG segment's revenue for the first half of 2024 was EUR 22.65 million, down EUR 2.15 million compared to the same period in 2023, but due to EUR 2.8 million lower costs, the segment's adjusted net profit for the first half of 2024 was higher by EUR 723 thousand compared to the same period in 2023, reaching EUR 841 thousand.
 
The decrease in revenues of the regulated LNG segment was mainly due to the repair and maintenance works of the FSRU Independence in a dry dock in Denmark in May, during which the Klaipėda LNG terminal operations were temporarily suspended. "The maintenance of the FSRU - renewal of the corrosion coating and other periodic maintenance works - was necessary not only for reliable and uninterrupted operation of the terminal in the future, but also in preparation for the transfer of Independence ownership to KN Energies at the end of the year. Despite the fact that the LNG terminal was not in operation in May, its average utilisation level in the first half of this year was similar to that of other terminals of this type in Europe, with the arrival of 12 LNG carriers and the loading of 9.2 terawatt hours of LNG", - emphasised T. Tumėnas.
 
KN Energies' strong performance outside Lithuania has led to excellent results for the first half of 2024 in the commercial LNG segment. The company started the year by winning the tender for the commercial operation of four floating LNG terminals on the German North Sea coast, and in May KN Energies won the tender issued by the German state-owned terminal operator Deutsche Energy Terminal GmbH and will provide O&M services for the LNG terminal Wilhelmshaven 2.
 
New projects secured abroad, operations in Brazil and the development of the Klaipėda LNG value chain led to an increase in the segment's revenues by more than 50%: the adjusted revenues of the commercial LNG segment for January-June 2024 amounted to EUR 5.36 million (H1 2023 - EUR 3.4 million), and the net profit amounted to EUR 2.46 million (H1 2023 - EUR 0.5 million).
 
"This year's financial statements highlight the new New Energies segment, which brings together the company's efforts to get into the business of new renewable energies - hydrogen carriers, carbon capture and transport. The activities of the new segment allow the company to contribute to the regional energy transformation, both in terms of climate neutrality and a clear commitment to transforming the company's activities towards the sustainability goals set out in the strategy. KN Energies will continue to strive for commercial and operational excellence in all areas of its business, which, together with the breakthrough in the international LNG business, justifies an optimistic outlook for the whole of this year," said Tomas Tumėnas.