Financial information

Key figures

Funding

Latvenergo Group finances its capital expenditures programme partly from owned funds and partly from borrowed capital. Latvenergo Group regularly sources borrowed capital to ensure the required funding for several year investment programme in a timely manner, thus establishing successful long-term cooperation with local commercial banks as well as international financial institutions. 

To diversify the sources of funding, Latvenergo AS has issued bonds, accounting for 20% of the total borrowings as of 30.06.2021.


All of the Group borrowings are denominated in EUR currency.

Latvenergo Group borrowings by categories of lenders

750,3 MEUR

Latvenergo Group debt repayment schedule

 30.06.2021
Share of fixed interest rate (with interest rate swaps)
42%
Duration
1,8 years 


 

In order to maintain a stable level of liquidity, the Latvenergo Group ensures a constant cash flow and maintains additional liquidity reserves.

30.06.2021
Liquid assets (cash and short term bank deposits with maturity up to 3 months)
MEUR
123
Committed long-term loans
MEUR
35
Committed short-term loans
MEUR 75
Investment in liquid financial assets
MEUR
3
Total
MEUR 
236

Bonds


ISIN code: LV0000802460
Nominal amount of the bond: EUR 1,000
Issue date: Issue date: 17 May 2021 (deal review - placement, issue)
Interest (coupon) payment dates: 17 May each year
Listing: NASDAQ Riga AS
Use of proceeds: Financing and refinancing of the eligible projects according to the Latvenergo AS Green Bond Framework
Programme: Bonds issued under third Latvenergo AS EUR 200 million Programme

ISIN code: LV0000801777
Nominal amount of the bond: EUR 1,000
Issue date: first issue in the amount of EUR 75,000,000 on 10 June 2015 (deal review - placement, issue);
second issue in the amount of EUR 25,000,000 on 14 April 2016 (deal review - placement, issue).
Interest (coupon) payment dates: 10 June each year
Listing: NASDAQ Riga AS
Use of proceeds: Financing and refinancing of the eligible projects according to the Latvenergo AS Green Bond Framework
Programme: Bonds issued under second Latvenergo AS EUR 100 million Programme

Dividends

Shares

The registered share capital of Latvenergo AS is EUR 790,367,859, consisting of 790,367,859 ordinary shares with a nominal value of EUR 1 per share.


Dividend Policy

The distribution of Latvenergo AS dividends is regulated by the Republic of Latvia Law on the Medium-Term Budgetary Framework for 2021, 2022 and 2023. According to the regulation, the expected amount of dividends payable by Latvenergo AS for the use of state capital in 2021 (for the reporting year 2020) is not less than EUR 98.2 million (including corporate income tax), in 2022 (for the reporting year 2021) is not less than EUR 87.7 million (including corporate income tax) and in 2023 (for the reporting year 2022) is not less than EUR 70.95 million (including corporate income tax). 

The actual amount payable by Latvenergo AS in dividends is determined by the Shareholders’ Meeting after the approval of the annual report, upon the evaluation of the results for the previous year.


Dividends paid by Latvenergo AS

Taxes

Latvenergo Group is one of the biggest taxpayers in Latvia. In 2020, the Group paid EUR 138.7 million to the state budget of Latvia. The amount of taxes paid in Lithuania and Estonia was EUR 12.6 and EUR 7.4 million respectively. In the Baltics, EUR 158.7 million was paid in taxes in total. The table below shows the taxes paid by Latvenergo Group by years and types of taxes, where taxes borne are taxes directly borne by the Group and taxes collected are taxes for which the Group acts as an intermediary, i.e. the taxes collected from consumers and employees and further transmitted to the the State.

Tax payments by Latvenergo Group (MEUR):


 2016 2017 2018 2019 2020*
Taxes borne
26.7 68.7 78.9 47.5 46.0
Corporate income tax
7.9 39.7 39.5 10.4 10.6
Payroll taxes paid by the employer
16.7 17.8 19.1 18.7 19.1
Other taxes (excise, environmental, electricity, real estate taxes)
2.1 11.2 20.3 18.4 16.3
Taxes collected
 105.4 81.3 95.7 105.0 93.1
Value-added tax
69.3 45.3 71.0 82.9 70.2
Payroll taxes paid by employees
21.3 22.2 23.5 22.1 22.9
Subsidised electricity tax
14.8 13.8 1.2 0.0 0.0
TOTAL
 132.1 150.0 174.6 152.5 139.1

* from 10 Feb 2011 until 10 Jun 2020, Latvenergo Group included Latvijas elektriskie tīkli AS, with 100% interest held


 2016 2017 2018 2019 2020
Taxes borne
 0.9 0.7 0.6 0.6 0.5
Corporate income tax
0.1 0.1 0.0 0.0 0.1
Payroll taxes paid by the employer
0.1 0.1 0.1 0.0 0.0
Other taxes (excise, environmental, electricity, real estate taxes)
0.7 0.5 0.5 0.6 0.4
Taxes collected
 14.2 11.5 13.2 13.8 12.1
Value-added tax
14.1 11.4 13.1 13.5 11.7
Payroll taxes paid by employees
0.1 0.1 0.1 0.3 0.4
Subsidised electricity tax
0.0 0.0 0.0 0.0 0.0
TOTAL
 15.1 12.2 13.8 14.4 12.6

2016 2017 2018 2019 2020
Taxes borne
 0.2 0.3 0.2 0.3 0.3
Corporate income tax
0.1 0.1 0.1 0.1 0.1
Payroll taxes paid by the employer
0.1 0.2 0.1 0.2 0.2
Other taxes (excise, environmental, electricity, real estate taxes)
0.0 0.0 0.0 0.0 0.0
Taxes collected
 6.5 6.0 6.4 7.4 7.1
Value-added tax
6.4 5.9 6.3 7.3 7.0
Payroll taxes paid by employees
0.1 0.1 0.1 0.1 0.1
Subsidised electricity tax
0.0 0.0 0.0 0.0 0.0
TOTAL
6.7 6.3 6.6 7.7 7.4

Rating

Latvenergo AS maintains long-term cooperation with the international credit ratings agency Moody’s Investors Service. The credit rating to the company was assigned for the first time in March 2004.

Latvenergo AS credit rating

Long-term rating Outlook Last approved
Baa2 Stable August, 2020