KN Group achieved a net profit of Eur 6.6 million in the 1st quarter of 2023
The KN Group experienced a profitable first quarter in 2023, driven by the high demand for its terminal services. In the period of January to March 2023, the KN Group generated a net profit of €6.6 million, compared to the €2.8 million loss incurred in the same period last year. Additionally, the KN Group achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of €9.8 million, representing a 17% increase compared to the first quarter of 2022 (€8.4 million).
KN Group's adjusted net profit for Q1 2023 amounted to €2.6 million, up from €1.4 million in Q1 2022. As a result, the Group's adjusted return on equity (ROE), calculated by including the last 12 months' results, reached 7% this year.
In the first quarter of 2023, revenues for the Group amounted to €22.2 million, indicating a 24% growth compared to the previous year's figure of €17.9 million. This revenue increase can be attributed to the strong performance across all business segments, particularly the oil segment, which experienced a 22% growth in revenue due to the high demand for oil product transhipment and storage services in Q1 2023.
The Klaipėda LNG Terminal utilisation rate during January-March, 2023, surpassed the average European LNG terminal utilisation. In the first quarter, the LNG terminal regasified and reloading 9 TWh of natural gas, an 145% increase compared to the same period last year. This segment generated revenues of EUR 12.7 million.
Moreover, the KN Group's revenue growth in the commercial LNG segment was further bolstered by international LNG business development projects in Brazil, Italy, and Germany.
Mindaugas Kvekšas, KN CFO, commented on the KN Group's successful first quarter, stating, "Our strong performance in the first quarter can be attributed to the sustained high demand for our terminal services, robust revenue growth in the commercial segment, and effective cost management. Additionally, the positive influence of exchange rate fluctuations significantly contributed to our net profit for the quarter."
As previously announced, the KN Group is currently updating its long-term strategy for the period of 2023-2050, with the new strategy expected to be finalized by the end of the first half of 2023.