Good morning. Dear listeners, welcome to Klaipėdos Nafta meeting with investors. I'm Emilia from Nasdaq Vilnius, and I'm delighted to be the moderator for today's event. We will start with the presentation from the management, which will be followed by the Q&A session. As always, I encourage every one of you to ask questions during or after the presentation in the question box of your screen. With that said, I'm pleased to introduce today's presenters, Chief Executive Officer, Darius Šilenskis, and Chief Financial Officer, Mindaugas Kvekšas. Dear guests, please, the floor is yours, and good luck.
Thank you for the introduction. Today, I will start the presentation of wrapping up our financial performance in 2021. Today, we are issuing the unaudited interim financial statements for the 12 months ended on 31st of December, 2021. Later in March, we anticipate to issue the audited financial statements as well. Here today, we are going through the presentation as in the format that we are used to. Well, first of all, the mission and vision for the KN Group . There were no changes as of this moment.
Therefore, I will immediately go to the latest relevant announcements for the last quarter and some subsequent events that happened after the reporting date. Last quarter was quite busy with the changes in our corporate governance structures. Most of our news that we issued on Nasdaq were related to that. First of all, back in November, a new board member, Mr. Guy Mason, joined our board as an independent board member. Later, on January 5, we received a formal notice from Mr. Bjarke Pålsson, who resigned from the board on February 1. Immediately on February 2, he was replaced by our new board member, Mr. Edvinas Katilius.
Later in April, we expect two new board members joining and replacing our current board members. Starting from April 25 , we'll have a new composition in the Board. On February 11 , we received a written notice from Ms. Laura Garbenčiūtė-Bakienė about resigning from the Audit Committee. The election of the new Audit Committee member has already began. Despite the quite busy schedule with changes in the corporate governance structures, there were also some other significant news that happened. Back in January, we had the first bulk of bitumen transshipped from storage tanks to a tanker.
This was a quite piece of news for us as this symbolizes that after we experienced shock of lost Belarusian cargos back in February 2021 that we have been quite busy finding new sources of revenue. This is one good example of what we achieved during this period. Lastly, just last Friday, we achieved a very significant milestone in our long-term project of floating storage regasification unit acquisition. Last Friday, we had an extraordinary general meeting of shareholders that has adopted the resolution and approved Klaipėdos Nafta's board decision to acquire the floating storage regasification unit Independence.
Also the price was communicated for the first time when adopting the decision. Going to the financial results. Already while reporting on quarter three of 2021, we communicated about the single most significant event that happened back in that quarter. On thirty-first of August 2021, we tested for impairment our property, plant, and equipment, particularly the assets of Klaipėda Oil Terminal. There were two main indicators that led to testing for impairment. I will allow myself to remind about those.
First of all, it was the long-term decline in revenue as a result of sanctions on Belarusian clients, and then also lower transshipment of heavy fuel oil in the future as a result of expected investments by KN's key customer in Lithuania. In the last quarter of 2021, while preparing the annual financial statements, we also revisited the impairment testing of quarter three and restated retrospectively the amount of impairment recognized back at August 31. The main reason for restatement was the fact that we reconsidered the cash flows related to the long-term lease contract.
As a result, due to the revision of cash flows, the value in use of the assets has slightly declined. Due to that reason, we recognized a higher amount of impairment. Consequently, also the depreciation costs for the last four months of 2021 were recalculated. Overall, looking at the total impact on our profit or loss for the period, we report a net loss of EUR 63.9 million. If we eliminate the impact of the impairment, which is EUR 45.2 million, then we are left with a net loss of EUR 18.7 million.
We are also here presenting the adjusted profit or loss for the period, which eliminates the unrealized foreign exchange gains and losses and also the related deferred tax effect. This is a more relevant key performance indicator for us, which shows less volatile financial performance of the entity. If we look at the adjusted profit or loss for the period, we see that we actually had a a net loss of EUR 1.9 million in net loss. Also, of course, the impairment had no effect on the EBITDA presented here. Further details are available in the financial statements that we are issuing, and there is a more in-depth disclosure on the recognized impairment.
Here in this slide, we provide an overview of the development in the company's revenue, EBITDA, and net loss throughout the period of five years. Comparing 2021 to 2020, we see that we had experienced a very significant decline in revenue, which is spread across two business segments. Well, first of all, in the oil terminal segment, we had a decline of EUR 10 million, which was mostly caused by lost Belarusian clients that stopped, as I said, in February 2021. The second segment where we had the decline in revenue is the regulated business segment, the LNG terminal segment.
Which is the decline is mostly explained by the excess net income that we earned in 2020, but we'll have to repay it. Most of that amount is already being repaid in 2022. In 2021, we had the opposite situation, where in the regulated business segment, we had a net excess cost, meaning that the costs are higher than we are earning in regulated revenue. This net excess cost shall be compensated to us in the future periods, starting from 2023. Then about the EBITDA. The EBITDA declined by EUR 22 million in comparison to 2020. Well, the reasons for decline in EBITDA are quite similar to those which I mentioned for the revenue.
The EBITDA for the Oil Segment declined by EUR 11.7 million. Of course, as I said, it is mostly affected by decline in revenue due to Belarusian clients and also what we experienced, especially in the last quarter of 2021. This is a significant increase in variable costs, driven mostly by unusually high market prices for energy products. Also in the Regulated Business Segment, we had a decline of EBITDA by EUR 11.2 million, which is mostly driven by those temporary regulatory differences that I mentioned. Those net excess incomes and costs, but also significant increase in emission allowance in the prices of emission allowances also has deteriorated our financial performance in this respect.
On the bright side, if I may say so, we saw an improved financial performance in the commercial LNG sector. This is a very positive outcome. As the commercial LNG sector has an increasingly important spot in our strategy, and it's increasingly important for the future of KN. Now, talking about the net profit loss, especially about the non-adjusted net profit and loss, we see that it is a very volatile line. There are two reasons why we see such a radical change, comparing 2021 to 2020. This is driven by the unrealized foreign exchange gains and losses that we had both in 2020 and 2021.
Also the amount of impairment loss that I already introduced. Just a short reminder that our alternative performance measure of adjusted net profit loss corresponds, well, or reflects the adjustments made in accordance with our dividend policy. The adjusted net profit loss shows our net profit loss that is adjusted by eliminating these unrealized foreign exchange gains and losses, the related deferred tax impact, and also the unrealized gains or losses from financial derivatives that we used in 2021 to hedge against the foreign currency risk. Now we overview the financial performance on a quarterly basis.
As you might notice, revenue was quite stable throughout the year, which indicates that we managed to stabilize the situation. We can already identify positive signs of recovering revenue because back in the first quarter of 2021, in January, we still had some revenue from the Belarusian clients. In the second quarter of 2021, we also had some one-off sales. If you look at the last two quarters of 2021, we see that the situation not just stabilized, but it started recovering and improving. However, the EBITDA for the last quarter was slightly lower than it was for the third quarter, and there are two reasons for that.
They both are related to the variable costs. First of all, due to some seasonality effects, variable costs increased due to higher quantities of energy products consumed. The significant increase in the energy prices has driven our variable costs upwards, and therefore we see a decline in EBITDA to some extent. However, we expect that despite all the situation in the markets that sometime later in 2022 or in 2023, when the situation with the energy prices becomes more ordinary, if I may say so, we should see an improvement in company's profitability. Well, here we are basically introducing the financial performance across the three main segments of our company.
The most important probably piece of information here is the significant difference in net profit loss comparing the IFRS-based financial performance indicator versus the adjusted net profit loss. The difference is almost EUR 17 million. This is mostly the effect, as I said, because of the unrealized foreign exchange gains and losses. Yes. Further on, I shall review now the key developments across the different business segments. Here we see the pro forma financial performance of the oil revenue segment, oil terminal segment. I've already introduced that the impairment was the most significant one-off event that happened in 2021, and we see its impact on the adjusted net profit loss.
However, well, the gradual increase in global liquid fuel consumption is also giving a positive impact on what we see in our financial performance. Already in the last quarter of 2021, we saw an improvement in the transshipment volumes in Klaipėda Oil Terminal, where December was the best month of the year in respect of the transshipped volumes. We could expect similar trends in 2022 if the situation remains as it was back at the end of 2021. However, the oil product markets remained in backwardation, and this made a negative impact on our storage volumes.
Until the end of the year, they remain quite limited. As I already mentioned, the first bitumen cargo shipment happened in 2021. Yes, as I said, this was a positive sign in respect of how much focus we are paying to finding new sources of revenue and diversifying our sources of revenue after the shock of lost significant revenue due to Belarusian clients. In the end of quarter four, the company signed a contract for truck shipment of one more new product, the crude oil of Lithuanian origin, which shall become effective in 2022.
The regulated business segment. While the average utilization of Klaipėda LNG terminal was quite low, however, it was in line with what we saw as a trend for utilization rate in other European terminals, which also declined on a year-on-year basis. During 2021, we had 15 large scale, 54 small scale cargos and 2 cargos for reloading operations. The overall number of cargos was quite similar to what we had in 2020, where we had 73 cargos. However, regasification and reloading quantity was significantly lower. However, it had little effect on our financial performance in respect of performance that is adjusted to take into account temporary regulatory differences.
Dutch TTF natural gas index was equal to EUR 79.2 per MWh , versus the price of just EUR 13 a year ago. This does not only affects the supply or demand of LNG products in our market, but it also has a negative effect on some of our variable costs in other segments. Now, the segment that I said showed the most positive change in comparison to 2020 was the commercial LNG sector, where our EBITDA significantly improved from EUR 1.3 million in 2020 to more than EUR 2 million in 2021.
This is mainly driven by the fact that we are both entering the new phase of the terminal operation in Brazil, but also introducing some efficiency measures that allow to achieve a better result. Our commercial LNG activities include the small scale LNG reloading station in Klaipėda, also the operation of LNG terminal in Açu Superport in Brazil, and some other business development projects, and other LNG consultancy services. Yes. Moving back to KN Group's key performance indicators. Well, I wouldn't stop much here because those significant events that happened in 2021, like the recognition of an impairment, made the greatest impact on key performance indicators and some other factors.
As I said, the situation was quite stable throughout 2022. Relative to performance in 2020, of course, the two factors of the recognized impairment loss and also due to decline in revenue, mostly because of the lost Belarusian client, made the greatest impact. Not going into further details here. The overview of our balance sheet or the statement of financial position. The decline in property, plant and equipment is quite evident, and it is all explained by the recognition of the impairment loss. The same factor was important for the decline in right-of-use property, which is also affected by the depreciation in 2021.
Concerning cash and cash equivalents, the increase was mostly driven by short-term deposits that expired in 2021, and this also corresponds to the decrease in other current assets. Concerning increase in loans. This increase because due to financing of a restructuring mechanism of security supplement in the regulated segment. We are taking out loans of around EUR 27 million each year. We shall see increase in loan as well in 2022 in that amount. This finalizes my presentation and my overview of the financial performance in 2021. We shall move to the question part.
Yes, indeed. Thank you very much for the presentation and, as you've mentioned, now we will proceed with the questions. Before that, I would like to remind all the attendees that you can submit your questions in the question box of your screen, and I will read them out loud. The first question that we received is as following: When will Klaipėdos Nafta resume publishing monthly results, please? It has been stopped since November 2021. Thank you.
Thank you for your question, and thank you for noticing that. In fact, we thoroughly considered changing the practice of reporting on a monthly basis. But since our business is quite stable, we came to the conclusion that it brings little value to our investors, the analysts and to market participants of issuing the very short and very brief overview of our financial performance on a monthly basis. Instead, we shall keep the quarterly webinars and reporting on a quarterly basis. I think it allows to achieve good balance of keeping our stakeholders informed, but also providing and also providing the important piece of information that is most valuable, most relevant. As we see it is not becoming outdated.
Thank you very much. We are still waiting for more questions to come in, and if you have not sent in your question yet, please do so now. It seems that there are no other questions, so thank you all on behalf of Nasdaq Vilnius and Klaipėdos Nafta. It was our pleasure being with you today. The recording of the presentation will be available in the Nasdaq Baltic YouTube channel. Have a good day, everyone, and goodbye.