Energy, Gas, Latvia

The state-owned energy producer and supplier operated successfully in the first half of this year, with profits reaching LVL 50 million, the newspaper was told by the state's shareholder in the utility – Economy Ministry State Secretary Juris Puce.

For comparison, the company's annual profit in 2009 was around LVL 20 million, which placed it sixth in the Dienas Bizness ratings of the biggest-earning Latvian companies.

However, the first six months of the year traditionally bring in much bigger profits than the second half, as high waters in spring generate big profits from Daugava hydroelectric stations. "Last year the company's profit over six months was around LVL 40 million. There have been years where profits of up to LVL 60 million were earned; however, it must be admitted that 2010 has been very successful for Latvenergo. The financial results that have been achieved have made us revise our previous forecasts for total profits in 2010, which should exceed LVL 30 million over the year," indicated Puce.

Latvenergo profits have broken the LVL 30 million mark only once in the past ten years – in 2001 the concern earned profits of LVL 31.01 million, informs LETA.

This year's success story has not just been a case of a year of high water levels. The low prices for natural gas have also allowed the company to operate successfully, with prices down to LVL 150 for 1,000 cubic meters at the end of 2009. The cold winter meant that Riga's thermal energy station was working at full capacity, and thanks to recent modernization works this was also able to work more efficiently than in previous years. Profits were also made thanks to the opening up of neighboring countries' energy markets, and the ability to export energy to Scandinavia through the "Estlink" cable.