Strategy
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)
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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 |
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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 |
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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 |
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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 |
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.
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The target for 2021 |
Results 2021 |
The target for 2022 |
The target for 2023 |
The target for 2024 |
The target for 2025 |
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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 |
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Dividend policy |
≥ 2 715 775 € |
7 999 514 € |
≥ 29 143 118 € |
64% |
64% |
64% |
Targets and their achievement in 2020
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Profitability |
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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. |
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Capital structure |
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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. |
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Dividends |
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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 |
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| 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 |
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| 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 |
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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”.
The amount of profit to be paid by AST in dividends to the state is determined in accordance with the Cabinet Regulation of the Republic of Latvia “Regulation According to Which the Capital Companies and Public Private Capital Companies, Where the State is a Shareholder (Stockholder), Estimates and Determines a Part of Profit to be Paid in Dividends, and Makes Payments to the State Budget for the Use of State Capital” (Regulation).
The amount of profit to be paid by AST in dividends to the state is determined in accordance with the Cabinet Regulation of the Republic of Latvia No.72 dated January 25, 2022 "The procedure for forecasting, determining and making payments for the use of state capital" (Regulation).
In accordance with the Regulation, the minimum part of profit to be paid in dividends for the use of state capital is set at 64% of the capital company's annual profit, unless otherwise specified in the capital company's medium-term strategy.
In addition, the part of the profit to be paid out in AST dividends from the profit of the previous reporting year in 2024-2025 is determined by the law "On the state budget for 2024 and the budget framework for 2024, 2025 and 2026". Actual amount of dividends is determined in the Meeting of Shareholders of AST after approval of the annual report.
| 2017 | 2018 | 2019 | 2020 | 2121 | 2022 | |
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| Profit, thous.EUR | 309 | 4 677 | 7 067 | 9 999 | 54 846 | 10 990 |
| The amount of profit to be paid in dividends, thous.EUR | 247 | 3 598 | 1 736 | 7 800 | 29 143 | 7 034 |
| Dividends / profit, % | 80% | 77% | 25% | 80% | 53% | 64% |