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ELEK: Latvenergo Group has increased its market share in the Baltics in the beginning of this year

Spekuliantai.lt | 2013-05-09 | NASDAQ OMX biržų naujienos | perskaitė: 1102
ELEK: Latvenergo Group has increased its market share in the Baltics in the beginning of this year

Latvenergo Company Announcement 09.05.2013

Latvenergo Group has increased its market share in the Baltics in the beginning
of this year

During the first three months this year the sales of electricity by Latvenergo
Group have increased by 2% compared to the corresponding period of last year.
The market shares of the Group in Estonia and Lithuania have increased and
Latvenergo has maintained a stable leading position in Latvia, also 10,000
customers have been gained outside Latvia.

Riga, 2013-05-09 09:49 CEST (GLOBE NEWSWIRE) -- In the first quarter of this
year, if compared to the corresponding period of last year, the sales of
electricity by Latvenergo Group have increased by 87 GWh or 34% in Lithuania
and by 125 GWh or 96% in Estonia. Subsidiaries of Latvenergo AS - Elektrum
Lietuva, UAB and Elektrum Eesti, OÜ - have successfully taken advantage of the
changes in the market situation in both neighbouring countries.

During the first quarter of this year Elektrum Lietuva, UAB has gained new
customers in the fields of manufacturing, agriculture and property management
in Lithuania. The manufacturer of cement Akmenes Cementas, AB is the biggest
customer in Lithuania with whom an agreement on continuing the current
successful cooperation has been reached. 344 GWh of electricity have been sold
in Lithuania during this time period and this is 34% more than during the first
quarter of last year, thus the market share of Elektrum Lietuva, UAB in
Lithuania has increased up to 13%.

With regard to Estonia, the sales of electricity by Elektrum Eesti, OÜ amount
to 256 GWh during this period, and this is 96% more than in the 1st quarter of
2012. The market share of Elektrum Eesti, OÜ in Estonia has increased up to
11%. During the first quarter Elektrum Eesti, OÜ has regained the water supply
utility Tallina Vesi, AS from its competitor and has started to supply
electricity to this company.

“With regard to the success in the Baltics, the development of the market in
Lithuania and Estonia has been very dynamic by now. The results of Elektrum
during the first 6 months after the introduction of this brand prove that this
was the right step. Each country has its own specific features and challenges,
for example, in Estonia the market is very active, there is fierce competition
among several players, it is more complicated and more challenging for us than
we had expected. However, also in this situation we have managed to almost
double our market share up to 11% and we have gained 7,000 customers. Our long
term goal is to achieve a 20% market share, therefore it is clear that there
are even more challenges ahead of us.

In Lithuania we work with small and medium companies, and this market is a
challenge for both us and our competitors for getting it “to move” because many
customers have not changed their supplier of electricity although the prices
paid by them are higher than the market could offer. Still it has to be
admitted that the start in Lithuania has been good, currently we have almost
3,000 business customers who together account for 13% of the Lithuanian market
share.

If we have to give a general description of the first quarter we can certainly
say that Latvenergo has benefited from the market situation in comparison to
other market players. Our sales outside Latvia are still above the sales lost
to competitors in Latvia, in the first quarter of this year this difference was
107%. This is a very good result," emphasises Dāvis Skulte, Electricity Sales
Director of Latvenergo AS.

By withstanding the increasing competition as regards business customers also
in Latvia Latvenergo AS has managed to keep its positions and has maintained
its leading market position with an 86% market share.

The electricity sales brand Elektrum of Latvenergo AS was introduced in 2012
for the purpose of taking advantage of the liberalised electricity market in
the Baltics and attracting new customers. The subsidiaries Elektrum Eesti, OÜ
and Elektrum Lietuva, UAB are independent companies registered in their
respective countries with their own structure, Management Board and a local
team. The market share of the Latvenergo Group accounts for 33% of the total
Baltic electricity market where the total consumption currently amounts to
approximately 25,400 GWh. Approximately 80% of the sales of electricity have
been to customers in Latvia and 20% to retail customers in Lithuania and
Estonia.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv

www.latvenergo.lv/investors/eng



About Latvenergo

The Latvenergo Group is the largest power supply merchant in the Baltics,
engaging in electricity generation and trade as well as providing electricity
distribution and management of transmission system assets. Latvenergo holds
one-third of the entire Baltic electricity market. Latvenergo AS has been
acknowledged as the most valuable company in Latvia for several years in a row.
International credit rating agency Moody’s has assigned Latvenergo AS an
investment-grade credit rating of Baa3/stable.

The Latvenergo Group includes the parent company Latvenergo AS (electricity
generation and trade, thermal energy generation) and its subsidiaries Latvijas
elektriskie tīkli AS (management of transmission system assets), Sadales tīkls
AS (electricity distribution), Elektrum Eesti OÜ (electricity trade in
Estonia), Elektrum Lietuva UAB (electricity trade in Lithuania) and Liepājas
enerģija SIA (thermal energy generation and trade, electricity generation), as
well as Elektrum Latvija SIA, a subsidiary of Elektrum Eesti OÜ.

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