On September 13, Investors Club readers had an exclusive opportunity to be the first guests at the new Viršu DUS Satekle – Riga, Satekles Street 2 – a day before the official opening. During the investor’s visit, 3 Jānis took to the “stage” – Jānis Vība, chairman of the board and CEO of Virši, Jānis Bethers, head of the energy segment of Virši, and Jānis Šķupelis from Investors Club.
During the investors’ meeting, extensive information was provided about the company’s results and plans, and those present actively used the opportunity to ask their questions as well. We have collected some of the most interesting questions and Heather the team’s answers to them to give you a “keyhole” look at the event.
What factors have most influenced the Viršu share price so far?
Highest share price For heathers was immediately after the IPO, but after that there was only a small fluctuation, in general the price remains at a stable level. Even after announcing successful period results, the biggest changes alone have been a maximum of 1%, mostly smaller, illustrating the sensitivity of the share price to financial results. True, the management of the company, analyzing the work done, has the feeling that the price would be higher. All valuation metrics have become more attractive since the IPO, making the stock only tastier.
Viši is currently expanding, going in new directions, won’t the focus on the core business be lost as a result?
No! The company is growing, expanding the team, gaining momentum. All new segments only complement the core business, they coincide with one of the company’s goals – to diversify operations by reducing risks. Existing businesses continue to grow rapidly, but new ones grow even faster.
Does Virši plan to go outside the Latvian market as well?
The company receives this question often. The situation is constantly being investigated, but this is not an end in itself. The company plans to become the No. 1 by the end of 2026. 1 In Latvia, when this is achieved, it will be possible to look further. At the same time, if there is an opportunity to enter foreign markets faster without large investments, it will be used even before 2026/2027. year This could most likely happen by purchasing an existing DUS.
Who and why is preference given – self-built DUS or purchase of existing ones?
Until 2017 Heather they preferred ready-made DUS, but since 2017 it is more often decided to build them themselves, of course there are also exceptions. Knowing the market situation, the possibility to invest and build a new station for 1.5 million is considered a smarter solution. euros, than the purchase of an existing station for the same 1.5 million. euro, but then investing in adaptation and environmental improvement.
Virši will soon open the first retail store on Tērbatas Street. Why exactly there and not, for example, in Old Riga?
Yes, the company will open a convenience store in September heather, Tērbatas street, in the center of Riga. It will have the existing store as well as a customized assortment. It will be a possibility Heather coffee can be enjoyed not only on the way by car, but also while walking around the city.
Before choosing a place, various factors were researched and analyzed, countless places were considered. The rent in Old Riga is many times higher than in other places, but the flow of people is not as many times greater than, for example, on Tērbatas Street. Therefore, when comparing the flow of people against the rent, Tērbatas street wins. If the store will work successfully, we are thinking of opening it in other places as well, possibly in Old Riga.
What is the current status of the Skulte LNG terminal?
It was already reported earlier that the government rejected the international investor’s offer, which the neighboring countries were only happy about. Now there is another potential investor with a higher risk appetite, but he needs more confidence that there will be enough customers to make a decision. Work in this area is ongoing, but it is not very active, because it seems that everything should have happened completely differently… Apparently, Latvians lack more shamelessness and business thinking.
Does the demand for gas in Latvia have a reason to continue growing? And therefore – is it worth trying to develop this business?
Last year there was indeed a sharp decline, as prices increased significantly. However, observations show that for the most part this was not a reason for gas consumers to abandon the use of this resource, however, many began to replace it with propane gas, which is a more environmentally friendly solution. If the price stabilizes, these consumers will likely switch back to natural gas. Also the fact that the Estonian company bought the Latvian one gas is another confirmation that there is a visible future in this field in Latvia – investors are ready to invest.
What will happen next with fuel prices in Latvia?
Prices are going up now, but no one can say what will happen next because it depends on many different factors. There are speculations that the upswing will continue, but if the world starts a recession and demand decreases, we can also experience a drop in prices.
Does Virši plan to change the dividend policy, investing more funds in the development of the company and paying less to investors?
No, it is not thought of. The company remains committed to paying 20% of the company’s profit in dividends, because it does not change much in the company’s cash flow and does not prevent the realization of future plans.
Višu’s plans also include offering electricity to households – when could this happen and will there be any special offers for shareholders?
In order to develop the field of electricity, there are indeed plans to start offering it to households as well, to take root in people’s minds. It is planned that the offer will start already at the end of September. It is planned to think about the shareholders both in this area and also in the area of electric charging, but for now, solutions are still being sought. Most likely, shareholders will receive news about them some time later, for now a little more patience is needed.
2023-09-14 09:36:37
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