Financial statements

In 2023, the Latvian transmission system operator JSC “Augstsprieguma tīkls” (“AST”) implemented significant projects to strengthen the electricity network aimed at increasing Latvia’s energy security and energy independence. In the reporting period, AST achieved a turnover of EUR 158.01 million and a profit of EUR 11.2 million, an increase of 2% compared to the previous year, according to the published consolidated financial statements of the AST Group.

In the reporting period, a significant part of AST’s profit was made up by the dividends received from the subsidiary AS “Conexus Baltic Grid” (“Conexus”) totalling EUR 5.72 million. The authorisation granted by the Public Utilities Commission (PUC) Council to offset the losses of the electricity transmission segment with income from congestion fee revenues amounting to EUR 14.13 million also had a positive impact on the profitability of AST. The increase in AST's profit, compared to the unaudited interim reports for 2023, is related to the recognition of congestion fee revenues to offset the losses of the electricity transmission segment in the amount of EUR 14.13 million (in the unaudited interim reports for 2023 – EUR 12.54 million).

In the first 6 months of 2023, the electricity price for transmission losses and technological consumption was nearly three times higher than the electricity price estimated in the electricity transmission tariff. To ensure the profitability of the transmission system operator, the PUC Council approved new tariffs for electricity transmission network services and allowed to use congestion fee revenues to offset losses. At the same time, as a result of AST optimisation measures and in cooperation with PUC and the Ministry of Climate and Energy, electricity transmission tariffs have remained competitive in the region.

In 2023, the AST Group’s net turnover totalled EUR 234.48 million, but the profit for the reporting year totalled EUR 10.23 million. The profit of AST Group was negatively affected by the impairment of assets recognised by the subsidiary Conexus.

In recognition of AST’s stability and financial credibility, the international rating agency S&P Global Ratings maintained AST’s credit rating at the unchanged high level of A- in 2023 and raised the outlook from stable to positive. At the beginning of 2023, the Ministry of Climate and Energy (MoCE) became a shareholder in AST, allowing energy policy makers to participate in the Group’s development.

The electricity transmitted by AST to users in Latvia reached 6,024 gigawatt hours (GWh) in 2023 (6,193 GWh in 2022). The amount of natural gas transmitted by Conexus reached 29.1 terawatt hours (TWh) in 2023 (31.4 TWh in 2022). Last year, the largest volume of gas in the last five years was pumped into the Inčukalns underground gas storage facility (21.7 TWh).

“The year 2023 was an important year for Latvia and the Baltic States in terms of strengthening their energy independence - following the cessation of electricity imports from Russia and Belarus when the war in Ukraine began, it was decided last year at the government level to accelerate the synchronisation of the Baltic electricity networks with continental Europe in February 2025. Last year, AST successfully implemented all synchronisation-related projects as planned, including the completion of the reconstruction of the Latvian-Estonian 330 kV Valmiera - Tartu interconnection; the reconstruction of the Valmiera - Tsirgulina interconnection was fast-tracked and is expected to be completed this year. In Ventspils, Grobiņa, and Līksna, the construction of high-performance synchronous compensator stations has begun. We have succeeded in attracting funding from the European Union, which for synchronisation projects accounts for more than 75% of the total costs of the projects,” says Rolands Irklis, Chairman of the AST Board.

In addition to carrying out the Group’s operating activity, AST continued to support Ukraine with donations of materials and equipment for the reconstruction of its energy infrastructure, which had been severely damaged due to Russia’s invasion. In autumn 2023, 66 tonnes of various equipment for the electrical power transmission system and transformer oil were delivered to Ukraine, stocks enough to last at least 20 years.

In addition to the Consolidated Annual Report of the AST Group and the AST Annual Report 2023, AST has published its Sustainability Report, prepared following the guidelines of the Global Reporting Initiative (GRI), and the Corporate Governance Report 2023.