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Strategic Objectives
| MINISTRY OF CLIMATE AND ENERGY (LETTER OF EXPECTATIONS) | AST | CONEXUS |
|---|---|---|
| ENERGY SECURITY AND INDEPENDENCE | Security and resilience of electricity supply | Efficient and safe maintenance of existing infrastructure |
| SUSTAINABLE DEVELOPMENT OF THE ENERGY SECTOR | Development of the electricity grid | Reduction of environmental impact |
| INTEGRATION INTO THE EUROPEAN SYSTEM AND REGIONAL COMPETITIVENESS | Market integration and development | Integration of sustainable energy sources and the development of new business opportunities |
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Goal and strategy 2021-2025
To ensure the security of energy supply of Latvia, to provide a continuous, high-quality and affordable energy transmission service, also to implement sustainable management of energy supply assets of strategic importance to the country and to facilitate their integration in the internal energy market of the European Union .
Documents: AST Group medium-term operating strategy for 2021 - 2025 (In Latvian, pdf file)
Financial and non-financial goals
Upon evaluating the performance results of the Company, considering the influencing objective, it is to be concluded that the Company operates in accordance with the proposed objectives, achieving the set performance results.
| The target for 2021 | Results 2021 | The target for 2022 | The target for 2023 | The target for 2024 | The target for 2025 | |
|---|---|---|---|---|---|---|
| Ensure optimal capital structure, financial risk management | An investment grade credit rating assigned by an international credit rating agency | A-/Stable | An investment grade credit rating assigned by an international credit rating agency | An investment grade credit rating assigned by an international credit rating agency | An investment grade credit rating assigned by an international credit rating agency | An investment grade credit rating assigned by an international credit rating agency |
| Dividend policy | ≥ 2 715 775 € | 7 999 514 € | ≥ 29 143 118 € | 64% | 64% | 64% |
Targets and their achievement in 2020
Profitability | |
| Ensure efficient management of transmission assets, preventing their balance sheet value from decreasing. | Target reached, value of transmission assets 31.12.2020. - 563 350 thousand. EUR, 31.12.2019 - 559 199 thousand. EUR. |
Capital structure | |
| An investment grade credit rating issued by an international credit rating agency | An agreement was signed with the credit rating agency S&P Global Ratings on October 9, 2020, and an investment grade rating of BBB + was assigned on January 28, 2021. |
Dividends | |
| To ensure dividends to be paid to the state budget in 2020 (for the reporting year 2019) ≥1,735,352 EUR. | The target has been achieved, dividends were paid to the state budget on June 10, 2020. |
Targets and their achievement by 2020
Fulfilment of key financial objectives | Results 2016 | Results 2017 | Results 2018 | Objective 2019 | Results 2019 |
Profitability | |||||
| In accordance with the provisions of the Service Tariff Calculation Methodology of the Electricity Transmission System (Methodology), to ensure the profitability of own capital ≥2.0% | 4.1% | 3.6% | 6.6% | ≥2.0%* | 10.1% |
| To ensure the profit permitted in the Service Tariff Calculation Methodology of the Electricity Transmission System, thous.EUR | 352 | 309 | 4 677 | in accordance with that which is permitted | 7 067 |
Turnover | |||||
| To ensure revenues from the transmission system at the level planned in the current annual budget for the provision of services, thous. EUR | 73 764 | 72 451 | 72 576 | 73 232 (+/-5%) | 72 787 |
Liquidity | |||||
| To ensure a current liquidity ratio ≥1, taking into account the accrued unused congestion charge revenue in the calculations | 1.0 | 1.0 | 1.0 | ≥1 | 1.0 |
*Excluding from the calculation, the increase of equity capital related to the acquisition of shares of JSC “Conexus Baltic Grid”.
Strategic goals
| Industry policy planning documents | Sustainable Development Strategy of Latvia until 2030 | National Energy and Climate Plan of Latvia 2021–2030 | National Development Plan of Latvia for 2021-2027 | Energy Development Guidelines |
|---|---|---|---|---|
| Industry objectives/priorities | To ensure National energy security by fully connecting electricity infrastructure to the European continental grid, integration of energy markets and modernisation of infrastructure, sustainable development of the energy sector and improvement of energy efficiency | |||
| The overall strategic goal of the Company | To ensure the security of energy supply of Latvia, to provide a continuous, high-quality and affordable energy transmission service, also to implement sustainable management of energy supply assets of strategic importance to the country and to facilitate their integration in the internal energy market of the European Union | |||
| The long-term strategic goals of the Company | Strengthening the energy security of Latvia by synchronising the electricity transmission network of Latvia with the continental European network; Sustainable development of the electricity transmission system of Latvia | To ensure safe operation of the Latvian electricity system and quality electricity supply to customers | To ensure the sustainable and efficient management of national strategically important energy supply assets | To certify the Company as a socially responsible company |