Lietuvos Energija operating strategy seeks a double increase in the value of the Group
The board of Lietuvos Energija state-controlled group of energy companies (hereinafter the Group) approved operating strategy of the Group for 2014–2020. The strategy provides for operating objectives, programmes for their implementation and financial performance. According to the strategy, value of the entire Group is expected to be double by 2020.
“Lietuvos Energija Group is some of the largest groups based on Lithuanian capital, with total assets of the Group companies accounting for over 30% of the total assets of the State-controlled companies. Over the last few years, the Group has improved performance and profitability; however, competition in the market is on sharp increase and fuel prices go up. Hence it is clear that we must act with determination to ensure stable activities of the Group, proceeds and return in the future”, so comments the background of the strategy Dalius Misiūnas, chairman of the board and chief executive officer of Lietuvos Energija.
Key targets under the new strategy include sustainable increase in value in energy sector and in the mission of energy companies. The Group shall seek a balance of asset return, contribution to the competitiveness of the national economy, and responsible and transparent activities. The Group believes that efficiency, promotion of lean use of resources, development and value-focused single organisational culture will contribute to the accomplishment of the vision of Lietuvos Energija, i.e. to become an energy company of highest value in the Baltics.
According to Mr Misiūnas, “the Group has set out ambitious objectives when it committed to accomplish its vision responsibly and consistently, and to exploit the potential of financial capability. We shall seek a double increase in the Group value (in terms of a derivative value of EBITDA indicator), to ensure economically valid investment and their return matching that of other comparable European companies in energy sector. Increase in value is an objective, requiring contribution by each and every employee of the Group”.
The Group expects to diversify generation portfolio, invest in improvement of both current activities and quality level, as well as develop new activities. Over the period to 2020, the Group expects to invest approximately LTL 2-3 billion in the development. Choice of funding instruments and sources of capital for funding will seek take account of every opportunity: ranging from regular instruments offered by the financial markets to institutional investors, pension funds or bonds, in order to raise funding of development projects. In order to ensure greater flexibility with choice of funding methods, the Group shall rely on transparent and stable activities, compliance with internationally recognised best practice of corporate governance, taking into account opportunities for promotion of the Lithuanian capital market, leading to greater competition of investors and creditors.
The Group shall seek greater efficiency in streamlining or centralising subsidiary functions, implementing innovations, and constantly improving operational processes.
Successful completion of strategic objectives will primarily depend on implementation of common values, targeted shaping of competences and improved maturity of the entire organisation.
About Lietuvos Energija Group
Lietuvos Energija Group is a state-controlled company group operating in power and heat generation and supply, electricity trade and distribution, trade and supply of natural gas, as well as maintenance and development of electricity sector.
Group companies provide services to over 1.5 million customers throughout Lithuania and supply electricity to customers in foreign countries, own and operate key Lithuanian power plants ensuring security of energy supply, nation-wide distribution network and implement development projects of strategic importance, pursue objectives of the National Energy Strategy.
Lietuvos Energija Group is comprised of the following companies: Lietuvos Energijos Gamyba, AB, electricity and heat generation and trade company, AB LESTO, electricity distribution network operator and their subsidiaries, as well as UAB LITGAS, UAB VAE SPB, UAB Duomenų Logistikos Centras, and UAB Technologijų ir Inovacijų Centras.
About Lietuvos Energija UAB
Lietuvos Energija UAB is parent company of Lietuvos Energija Group; is responsible for transparent management and coordination of activities of the Group, and improving efficiency.
The company analyses the activities of the Group, represents the Group, exercises rights and duties of shareholder, sets operating guidelines and rules, and coordinates the activities in the fields of power generation, commerce, ¬finance, law, strategy and development, human resources, risk management, audit, technologies, communication etc.
