Lietuvos Energija is half-way towards achievement of its strategic goal

Thursday, 03 September 2015

Having previously centralised and optimised its activities, Lietuvos Energija Group reduced its expenses directly related to the price of electricity, gas supply and other services by 10 percent in the first half of 2015. At the same time, performance results of the Group improved. The state-owned group continues investing in strategic development projects and optimising processes creating value. This has created preconditions for sustainable increase of benefits created for customers, Lietuvos Energija reports.

Compared to the first half of 2014, operating expenses of Lietuvos Energija Group decreased by 10.1 percent in the first half of 2015, namely, from EUR 58 million to EUR 52.1 million. This reduction was affected by centralised accounting, public procurement and personnel administration activities as well as more efficient performance of real estate, vehicle fleet, IT and other service functions.

"The previously conducted works in the centralisation and optimisation of activities have rendered tangible results to the Group, while customers paying less for electricity and gas received the greatest benefit. We yet have measures for the reduction of expenses: the value chain refinement programme of the main activities, namely, the consolidation of energy production, distribution, supply, customer service and contracting, providing for the merger of companies will allow eliminating three legal entities and facilitating the Group structure. We also plan implementing a single integrated business management system within the Group, and we have made the use of office premises more efficient," said Dr Dalius Misiunas, Chairman of the Board and CEO of Lietuvos Energija.

In the second quarter, Lietuvos Energija Group simplified its structure - it took over from its subsidiaries companies under their control (Elektros Tinklo Paslaugos, Energijos Tiekimas, Kauno Energetikos Remontas and NT Valdos). The flatter structure of the Group allows Group companies to focus on their core activities, while the competence of the management of Group companies is efficiently concentrated in Lietuvos Energija company.

"We have focused on the increase of value in the Group, thus besides the constant reduction of expenses and control, we have invoked development projects for the growth of value, which will create value to customers in the long run. We see potential in wind energy, also, we have developed the projects of cogeneration power plants in Vilnius and Kaunas and expanded the liquefied natural gas market," said Misiunas.

Lietuvos Energija, planning to double its value by 2020 compared to 2012, has already achieved 50 percent of this strategic goal.

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