28.04.2009

Eustream in 2008 was intensifying international co-operation

Bratislava, 28th April 2009 – The key player in transmission of Russian gas in the European Union, eustream, a.s. (Eustream), in 2008 intensified co-operation with international partners. At the end of the last year Eustream signed a gas transmission contract for the next 20 years with Gazprom export as well as agreements with adjacent network operators. Moreover, 2008 represented another period of safe and reliable gas transmission services without any disruptions from the side of the Slovak Transmission System Operator with a 3 % increase in transmitted volumes.

Signing a long term agreement with Gazprom export secures the continuation of Eustream activities as a key player in the transmission of natural gas in Europe over the next 20 years. “This contract for transmission of roughly 1 trillion (10¹²) cubic meters of natural gas represents a major achievement, especially at this time of financial crisis. I am proud that our company will continue to play a major part in securing gas supply for the European Union,” said Chairman of the Board of Directors of Eustream, Antoine Jourdain.

Eustream intensified international co-operation
The largest carrier of natural gas in the EU signed a Memorandum of Understanding with several other Transmission System Operators of South-East Europe in 2008. Strengthening network extensions coordination, enhancing transparency and harmonizing technical standards leading to increased security of energy supplies in Europe is the main goal of this document. Through a closer co-operation with other operators, Eustream aims at improving gas transmission services across the region. The main goal of the company remains contribution to the development of the EU gas market and safe gas supplies to EU countries. By signing this Memorandum, the partners are also complying with the targets of European Regulators, who launched the Gas Regional Initiatives in 2006.

Eustream is investing in safety and reliability
The company continually invests into projects increasing the security of the gas supply to the European market. The total sum of investments into the transmission system operated by Eustream in 2008 represented about EUR 50 million. One of the priorities of the last year was reinforcing the interconnection between Slovakia (Vysoká na Morave) and Austria (Baumgarten an der March).

Eustream recorded a 3 % increase in transmitted volume
Last year, Eustream transmitted 76 billion cubic meters of natural gas, representing a 3% year-on-year increase in transmitted natural gas volume. This total amount of gas transmission reassured the position of Eustream as one of the major transmission system operators in Europe. “2008 was another year of safe and reliable gas transmission services provided to our customers without any disruptions,” stated Pavol Janočko, the General Director of Eustream.

Financial results negatively influenced by the strong Slovak crown
The net profit of Eustream was affected by several factors. Despite recording a 3 % increase in transmitted volume, the operating profit (EBITDA) declined year-on-year by more than
EUR 19 million. Internationally, 2008 was an extraordinary year, mainly because of the financial crisis, weak dollar and the exceptionally high price of oil, which reached more than
145 USD/barrel. The strong Slovak crown negatively influenced the company’s revenues, which are to a great extent reported in US dollars.

Outlook for 2009
Eustream will focus on enhancing security of gas supplies for Slovakia through investing into cross border transmission capacities. In 2009, the company will mainly analyze possibilities of implementing reverse flow and new interconnections related to the Czech Republic, Austria and Hungary. These projects are important in broader international sense since they have been officially included into the European Economic Recovery Plan recently set up by the European Union. Investment activities planned by Eustream for 2009 in total amount up to
75 million EUR.

Structure of consolidated income and expenses of company eustream, a.s. in 2007 – 2008 (according to IFRS in EUR* million, SKK billion)

	2007	2008	Difference 2008-2007	2007	2008	Difference 2008-2007
	EUR million	EUR million	EUR million	SKK bilion	SKK bilion	SKK bilion
Income from sale of finished goods and services	795,2	804,1	8,9	23,9	24,2	0,3
Operating expenses	-691,6	-725,0	-33,4	-20,8	-21,8	-1,0
Operating income	103,6	79,1	-24,5	3,1	2,4	-0,7
Income from financial investments			0,0			0,0
Income/(expenses) for financing	27,2	26,3	-0,9	0,8	0,8	0,0
Income from financial operations	27,2	26,3	-0,9	0,8	0,8	0,0
Income tax	-26,3	-20,2	6,1	-0,8	-0,6	0,2
Profit after tax	104,5	85,2	-19,3	3,1	2,6	-0,5

*) Recalculated at the conversion rate 1 EUR = 30.1260 SKK

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