Operating segments

Generation and Trade

Generation of electricity and thermal energy, electricity and natural gas trade in the Baltic states, and administration of the mandatory electricity procurement process in Latvia.

Distribution 

The distribution service ensures the flow of electricity from the transmission network to consumers. Sadales tīkls AS is the country’s largest distribution system operator and covers approximately 99% of the territory of Latvia. Distribution system service tariffs are approved by the Public Utilities Commission (PUC). 

More information on Sadales tīkls AS webpage www.sadalestikls.lv.

Facts

Data as of 31.12.2021


1939

Founded

3,153

Employees

5

Subsidiaries

4,517 GWh

Electricity output

2,072 GWh

Thermal energy output

59%

Generated from renewable energy


1,065 MEUR

Revenue

72 MEUR

Net profit

3,476 MEUR

Assets

127 MEUR

Investments

Baa2 (stable)

Credit rating


23%

Market share in the Baltics

755,000

Retail customers

6,706 GWh

Retail electricity supply

1,026 GWh

Retail natural gas supply

1,983 GWh

Thermal energy sold


2,606 MW

Installed electrical capacity

92,430 km

Length of distribution lines

5,951 MVA

Transformer capacity

1,797 MW

Installed thermal capacity

Mission. Vision. Strategy

We energize the growth of society!

It is in our hands to take care of our customer today, meanwhile considering the impact on our future generations. We are well aware that natural resources are scarce, thus we are already looking for solutions to handle and utilize them wisely. We want to see a world in which every move is initiated by sustainable energy. We believe that you get what you give – as the energy always transfers from one form to another. Therefore, by transforming the power of nature into energy, we help to start the movement of growth for all of us! With the support of innovation, we make our services sustainable and suitable for everyone's needs, encouraging others to change their habits and grow, as well as to stand up for the wellbeing of our society.



Vision

We are the leading sustainable solutions provider in the energy industry.

Mission

We drive the development of the energy industry by providing friendly, innovative and sustainable solutions



WITH HEART

We are open and passionate

WITH MIND

We do the right things and continuously learn

WITH ENERGY

We are brave and persistent

WITH FUTURE OUTLOOK

We do good for the clients and society



Trade

Strengthen a sustainable and economically sound market position in home markets, at the same time considering geographical and/or of product/service expansion.

  • Operational excellence and cost-effectiveness;
  • Starting of retail gas trading;
  • Energy efficiency products as a business opportunity.

Under certain conditions, possibly also:

  • Geographic expansion to Nordic electricity markets;
  • Improvement of thermal energy trading,
  • Promotion of energy substitution projects (e.g., electro mobility, gas substitution with electricity in households).

Generation

Develop a generation portfolio adequate for synergies with trading and increasing the Group's value.

  • Complete the reconstruction of Daugava HPP generation facilities for sustainable and reliable operation;
  • Building of a gas procurement portfolio subordinated to the requirements of the electricity market;
  • Diversification of  the Group’s generation capacity and development of new ones.

Networks

Develop a functional, reliable and efficient network corresponding to customer needs.

 

  • Increase the efficiency of the distribution network;
  • Improve the quality of the distribution service;
  • Digitalise the distribution network;
  • Achievement of the transmission asset lease targets. 

Dividend Policy

Share of profit paid as dividends  > 80%

Profitability

Return on equity  >6%

Capital Structure

Net debt to equity  < 50%

Net debt to EBITDA < 3 

Organisational structure and governance

Latvenergo Group comprises the parent company Latvenergo AS and six subsidiaries. Latvenergo AS ensures generation and trade of electricity and thermal energy as well as trade of natural gas. Latvijas elektriskie tīkli AS manages transmission system assets, while Sadales tīkls AS ensures electricity distribution to each customer. Elektrum Eesti OÜ and Elektrum Lietuva UAB conduct electricity trade in Estonia and Lithuania respectively. Enerģijas publiskais tirgotājs AS carries out administration of electricity mandatory procurement.  

Liepājas enerģija SIA (51% of shares) ensures generation, transmission, distribution and supply of thermal energy in the city of Liepaja as well as generation of electricity in cogeneration mode. Latvenergo AS also holds 46.3% of the shares in the closed pension fund Pirmais Slēgtais Pensiju Fonds AS, as well as 0.005% of the shares in Rīgas siltums AS.


For more information about the governance of Latvenergo Group, see section  Investors/Corporate governance.

The Management Board of Latvenergo AS

The Management Board of Latvenergo AS was elected  for a five-year term. The Management Board consists of five members: 

Mārtiņš Čakste

Chairman of the management board,
Chief Executive Officer

Dmitrijs Juskovecs

Member of the management board,
Chief Commercial Officer

Guntars Baļčūns

Member of the management board,
Chief Financial Officer

Kaspars Cikmačs

Member of the management board,
Chief Development Officer

Harijs Teteris

Member of the management board,
Chief Operating Officer

The Supervisory Board of Latvenergo AS

The Supervisory Board of Latvenergo AS was elected at the Shareholders' Meeting of Latvenergo AS on 10 June 2020. The Supervisory Board is composed of five members: 

Ivars Golsts

CHAIRMAN OF THE SUPERVISORY
BOARD

Kaspars Rokens

DEPUTY CHAIRMAN OF THE SUPERVISORY BOARD

Toms Siliņš

MEMBER OF THE SUPERVISORY BOARD

Aigars Laizāns

MEMBER OF THE SUPERVISORY BOARD

Gundars Ruža

MEMBER OF THE SUPERVISORY BOARD

Awards




Latvenergo Group – a leader in the energy industry



In TOP 101 Most Valuable Companies in Latvia Latvenergo AS received the award for the most valuable company in Latvia for the 13th time and was declared the most valuable power utility in the Baltics.





Highest assessment in the history of the Sustainability Index


For the eighth year in a row, Latvenergo AS was awarded the Platinum category and the historically highest assessment of 97.5% from the Latvian Sustainability Index. Sadales tīkls AS was awarded the Platinum category for the second time. Liepājas enerģija SIA was awarded the Gold category for the third time.





Three awards in the TOP 500 Companies of Latvia


In the TOP 500 Companies of Latvia, Latvenergo AS was recognised as the largest EBITDA maker, the largest state-owned company and the largest company in the energy sector.




Latvenergo Group’s sustainability and governance are appreciated


Latvenergo AS again received the Nasdaq award for best investor relations on the bond market in the Baltic states. Detailed and high-quality sustainability reports, an informative and investor-friendly website, and timely disclosure of information were especially appreciated.




The Most Attractive Employer


In a study conducted by Amrop personnel recruitment company on employer image, Latvenergo AS was recognized as one of the best rated employers in Latvia. For the eighth time, Latvenergo AS was ranked as the top employer in the production sector in a survey by CV-Online Latvia.




Golden awards to the fleets of Latvenergo Group and Sadales tīkls AS


In the contest The Safest Company Car Fleet the Golden Award went again to the car fleet of Latvenergo Group and the special vehicle fleet of Sadales tīkls AS.

History

1939

In October, the first Daugava hydropower plant – Ķegums HES was launched, while in December the Latvian State President and Prime Minister K. Ulmanis signed the Law on Establishing the State Electricity Enterprise “Ķegums”. Latvenergo Group considers this date as its birthday.

1955

To ensure centralized supply of thermal energy to Riga in the cold months, the Riga TEC-1 started operation. The 2nd phase was completed in 1959, achieving an electric capacity of 129 MW.‎