AST to pay the state 3.6 million euros in dividends
The annual accounts of the company approved by the shareholder meeting today show that the profits of the Latvian electric power transmission system operator, AS ‘Augstsprieguma tīkls’ (AST), reached 4.7 million euros in 2018, of which 3.6 million will be paid as dividends to the state; the remaining amount will be invested in the fixed assets, with the purpose of implementing development projects.
The turnover of AST during the reporting year was 194 million euros, which is 35 million euros more than the year before. Income from electric power transmission network services amounted to 72.6 million euros, or 37% of turnover.
The profitability of AST in 2018 complies with the profitability level set by the Electric power transmission system service fee method. The profits and fixed asset returns rising from 3.6% in 2017 to 6.6% in 2018 is related to dividends received from AS Conexus Baltic Grid for the 2017 reporting year.
Last year, AST continued working on the implementation of a number of development projects, rebuilding current transmission lines and substations, and constructing new ones. Furthermore, in accordance with the Electricity Market Law, the company worked on developing the electric power market and integrating Latvia into the internal electric power market of the European Union (EU), participating in EU activities and implementing regional projects in the Baltic states.
Transmission of electric power is a regulated industry, with the permissible profit and capital return rates set by the Public Utilities Commission, as it determines the electric power transmission system service fees. AST’s 2018 annual accounts were prepared in accordance with the international financial accounts standards.