On 26 August 2021, a webinar of Latvijas Gāze took place, where Inga Āboliņa, Member of the Board and Chief Financial Officer, presented and explained the financial results of the first six months of 2021.
Lower temperatures during the heating season and significantly higher natural gas prices were the two main factors that affected the financial results of Latvijas Gāze in the first half of 2021. Due to lower temperatures, the sales volumes and natural gas distribution network load of the company increased. At the same time, the rise in natural gas prices caused by the economic recovery posed challenges as well and it is expected to keep being challenging in the second half of the year.
In the first six months of 2021, Latvijas Gāze sold 7,437 GWh of natural gas to customers in Latvia and abroad. Compared to the same period in 2020, sales have increased by 38%. Natural gas sold abroad accounted for 37% of the total sales.
“The natural gas trading business and the price of natural gas are affected by global events and conditions, such as increased demand due to the cold winter, the availability of LNG (liquefied natural gas) and the amount of stock in Europe for the next heating season. The results of the first half of 2021 have been affected by the revaluation of Latvijas Gāze financial instruments, which is reflected in the profit and loss statement on a monthly basis but will present the opposite effect in the natural gas sales season, thus, significantly affecting the annual financial results” explains Inga Āboliņa.
