The Joint Stock Company “Latvijas Gāze” completed the 3 months of 2009 with a profit of 5.7 million LVL, which is by 18.8 % more than in the respective period of 2008 when the profit amounted to 4.8 million LVL, which, for its part, was by 26% less than in the respective period of 2007 when the Company profited 6.5 million LVL.

The financial indices of the Joint Stock Company “Latvijas Gāze” are distinctly seasonal as basically profit is gained during the heating season in the first and fourth quarter of the year. Accordingly, in the second and third quarter, when there is a break between heating seasons, the Company not only has lower income and profit, but also makes the major investments in the infrastructure.

The majority of gas transmission pipelines in Latvia are 40 or more years old; the Inčukalns Underground Gas Storage Facility was put into operation in 1968. Therefore the Joint Stock Company “Latvijas Gāze” with the support of its shareholders has been implementing considerable measures of infrastructure modernization and security improvement since 2002, investing 12 to 16 million LVL yearly. Already so far a lot has been done in modernization, but it is necessary to continue the job since the natural gas supplies must not be interrupted at any moment and natural gas is an important energy resource for the economy of Latvia. The Joint Stock Company “Latvijas Gāze” holds that investments in the modernization of the gas supply system have to be continued at their current level or even increased in order to minimize risks related to the outdated infrastructure as soon as possible. In order to make the planned investments, appropriate profit is necessary as the source of financing for the investment.


Vinsents Makaris
phone + (371) 67 369 144
e-mail: IR@lg.lv