“Tetas”, which experienced a loss last year, is recording good results this year, implementing the budget plan | Business

“We hope that in the short term, due to the implemented operational changes and control measures, Tetu will be able to restore financial stability. At the moment, Teto’s indicators are already positive and the 2024 budget plan is being implemented,” Darius Kašauskas, head of finance at Epso-G and chairman of the board of Teto, told the portal.

In 2023, the company’s loss grew to 8.97 million. euros and was 1.9 times higher than a year ago. According to “Verslo žinios”, in the report to the Registry Center, the company indicates that last year it accumulated a large amount for project provisions, for example, 6.31 million. euros due to the unprofitable construction of the Darbėnai switchyard.

According to D. Kašauskas, Teto’s negative performance results were caused by several high-value and long-term contracts, the company failed to fulfill its obligations to several other customers during the construction of strategic objects.

In turn, market participants told the portal that “Tetas” distorts competition in the energy infrastructure construction market, receives state orders, even though it operates at a loss.

“How about 13 million EUR 6.3 million to make a contract euro deposits? Any contractor would terminate the contract if the cost increased by 1.5 times. This is manipulation of the market,” said a businessman who spoke anonymously to “Verslo žinia”.

The president of the Lithuanian Electricity Association, Kęstutis Jauniškis, told the portal that state projects are sometimes awarded to Tetu without a tender, for example, the construction of a physical barrier on the border with Belarus.

At that time, the Ministry of Energy stated that this year the company is fulfilling its goals and emphasized that “Tetas” operates in a competitive market.

“We believe that the market is currently competitive and we would like to see it remain that way because it benefits both consumers and market participants.” Analyzing it, we observe attempts to oligopolize,” the ministry commented to the portal.

According to Epso-G, Teto’s main activity is the construction of power lines, substations and other electricity transmission and distribution facilities. With the transmission system operator Litgrid, the company has 20 currently executed contracts worth 57 million. EUR without VAT.