KN increased its revenue and net profit in the first half of 2023
The growing demand for liquid energy terminal services, high volumes of LNG terminal operations, and a breakthrough in international LNG projects have led to a robust financial performance for KN in the first half of 2023. During the period of January-June 2023, KN Group generated revenues of EUR 42,4 million, marking an increase of 18% compared to the previous year. The Group's net profit for the first half of this year amounted to EUR 8,1 million, a significant improvement compared to the loss of EUR 13,8 million incurred a year ago.
Throughout the first six months of 2023, KN Group achieved an adjusted net profit of EUR 3,3 million (compared to EUR 3 million in the previous year), respectively the Group's EBITDA for this year reached EUR 16,7 million (compared to EUR 16,9 million in 2022).
"We are delighted with the strong performance of our liquid energy products and commercial LNG operations in the first half of the year, both of which experienced growth in EBITDA and profit. The results for this period reflect our enduring commitment to transforming the company—ensuring control of energy costs, reducing operational emissions, and fostering a diversified portfolio of activities in the liquid energy terminals. Furthermore, our efforts over the past few years in developing our international LNG business are already yielding tangible results and contributing positively to the company's profit," stated Darius Šilenskis, KN CEO.
During the first half of this year, in the segment of liquid energy products, both light oil products and biofuel transshipment increased. Thanks to a successfully diversified portfolio, KN managed to maintain its operational volumes at a similar level as in 2022, while the cargo volumes of other competing terminals in the Baltic countries decreased. It is estimated that the share of the transshipment market for the Klaipėda liquid energy product terminal has increased from 25 to 39 percent this year.
Klaipėda LNG terminal continues to maintain record-breaking operational volumes - during the first half of 2023, regasification and reloading volumes were 17.3 TWh, which is 32 percent higher than the same period last year. 87 percent of natural gas transported to Lithuania in the months of January to June of 2023 was imported through Klaipėda LNG terminal.
In the commercial LNG segment, the KN Group earned 0,5 million euros of net profit during the first 6 months of this year (compared to a net loss of 84 thousand euros in the same period last year). The performance 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 conclusion and implementation of commercial operator service contracts in Germany.
"We anticipate that our efforts so far will provide a solid foundation for the rest of the year. The end of the first half was marked by a significant milestone for us – the adoption of KN's long-term strategy. Within the new strategy we clearly outline the directions of our activities and ambitions, both in the main business segments and in committing to achieving complete climate neutrality in our operations by 2050. Therefore, in the second half of the year, we will focus on unfolding the strategy and successfully launching its implementation, while continuing to concentrate on enhancing value for our customers and operational excellence," emphasized the CEO of KN.
KN currently operates three liquid energy product terminals in Lithuania and is the operator of LNG terminals in Lithuania and Brazil. The company also provides commercial operation services for two floating LNG terminals in Germany.