Good morning, dear listeners. Welcome to KN Energies Investor Relations Conference. I'm Emilija from Nasdaq Vilnius, and I'll be moderating today's event. We will start with the presentation, which will be followed by the Q&A session. Please be informed that this webinar is being recorded and will be available on the Nasdaq Baltic YouTube channel. I encourage everyone to submit questions in the Q&A section at the bottom of the screen. With that said, I am pleased to introduce today's presenter, Tomas Tumėnas, the CFO of the company. Please, the floor is yours.
Hello. Hello to everyone. It's nice to welcome all the participants on this morning, Friday, financial release information of KN Energies' results of the last year. Actually, I'm really proud to present the last year's performance of KN Energies, because we had last year very work-intensive, I would say. Let's start our presentation. I would like to start from our financial main highlights, what happened in the last year. Actually, as I said, we had a really good year in terms of our results, in terms of our profit earned, in terms of our revenues and achievements that we made, because we had an interesting year, a very labor-intensive year, and many interesting events happened. As you see, that also was reflected in our share price, which over the last year increased by 17%. Our market capitalization reached almost EUR 90 million.
It is actually by almost EUR 12 million more than we had in 2023. As the company managed to increase the revenues to an extra and better profitability margins were achieved, our profitability ratios also increased. That said, about return on capital employed, as you see, we had an increase from almost 4%- 5.3%. Especially a slightly increased price earning ratio remained the same. If we took on the major metrics of financial performance, the revenues of the company reached almost EUR 94 million. This is 12% above the previous year. EBITDA plunged by almost 40% to EUR 49 million. Net profit was EUR 15.4 million, and this is a 16% increase. Adjusted net profit reached EUR 14 million, actually twice higher than we used to have a year ago.
Adjusted net profit, just wanted to clarify, this is the net profit without impact of IFRS 16 or this fluctuation of foreign exchange rates, because we had, as we had, a liability towards repurchasing our FSRU vessel. If we took basically on a business segment, the majority of our revenues came from regulated activities, so we're calling LNG activities, as you see, 60%. This is the biggest contributor towards our profit and EBITDA. It is worth noting that commercial activities, both liquid energy terminals activities and commercial energy foreign activities, increased during the year. Total size of contribution into the revenues of those business lines accounts already to 40% if we take revenue side and accounts to 32% in terms of the EBITDA. If we're going down to the net profit, because those activities are much more profitable for the company, that share amounts to 50%.
If we take revenue size, 40%, and profitability-wise, it's 50%. This is a very remarkable achievement, I would say, because this is our major driving force of profitability of the company and, of course, enhancing our returns on assets and returns on equity. Major business highlights. I would say, as I said, many events. A couple of them we would like to highlight. One of them is that the company managed to sign O&M contracts in Germany, winning four out of five German state-controlled LNG business terminals. Two global LNG contracts have been signed with DET, Deutsche Energy Terminal operator. We managed to prolong our agreement with Orlen in our small-scale business line. This is also a very important achievement because of having contracts that we won in Germany.
We established the company and KN Energies Deutschland, which will be managing and is managing our business in Germany. Also, we had very important events, not only in the company's history, but as well, I would say, in all Lithuanian energy sectors history, because we acquired in our balance sheet under our ownership and under our Lithuanian flag, FSRU Independence vessel. That acquisition took place at the end of, at the beginning of December. Also, it's worth mentioning that due to this, due to the acquisition case, we managed to conclude a very big transaction in the capital market because we purchased dollars and sold our euros because the FSRU vessel is in dollars denominated. That transaction resulted in almost EUR 8.1 million of savings that the company managed to have and had the ability to receive a very good spot rate in August.
Also, a very important event that happened at the end of December of the last year that the company managed to prolong another one-three-year contract with Orlen for our major activities in liquid terminals, because Orlen is the biggest client for oil terminals within the company. It accounts for around 80% of all revenue flows from the liquid energy business. It flows from Orlen activities. I would like to give some also information about what happened in the markets in 2024. This is, I would say, key, let's say, metrics that we are following, because those affect quite substantially the performance, financial performance of the company. One is exchange rate euro versus dollar because of that acquisition need of the vessel. Then is the gas price and also the carbon permit prices.
If we take gas prices, as you see, the fluctuation was quite high, and the gas prices in the market fluctuated from EUR 31- EUR 50 in different months. Currently, we have the prices around EUR 54 per MWh . Even in February, we had a peak around EUR 62 per MWh. Carbon permits also fluctuate a lot, and it more or less follows the gas price, and the fluctuation was also quite high. Usually, this is very important, as I said, KPIs for our performance, because gas, EU Carbon Permits, and electricity account for almost EUR 6 million of the costs. If we take our total cost structure, which is with depreciation, it amounts to EUR 70 million, so approximately 10% goes to the variable cost, with the biggest part being gas, electricity, and Carbon permits.
For us, it's very important to look and to trace the market trends, what is going on, and when to go and to make purchases of those materials and to make appropriate hedges in order to secure the margins. From one end, this is the basic situation. Also, please be reminded to the investors that, let's say, Carbon permits, of course, they are reimbursed by a national energy regulator, but the company aims to find the best price at the market as far as it could, because those prices are passed on later on to the consumers. If we take the LNG market, also a short glimpse, I think it's very interesting. Average, let's say, utilization ratio of our LNG terminal in the last year was around 54%. The average utilization rate in Europe is 43%. Here you see different LNG terminals with different utilization ratios per different years.
We're taking five years, let's say, historical figures just for curiosity to see. As you see, Klaipėda, this is we. This is our FSRU LNG Independence, or INDE, how we're calling it as a nickname. Our utilization ratio last year was, as I said, 54%. If we take the LNG cargoes that are coming into Europe, basically, the majority of LNG cargoes come from the United States. It's around 48%. You can see roughly around even 50% comes from, I'm sorry, from Norway. It increased versus 2023. Then 43% comes from the United States. It's a slight decline versus, as you see, last year. The third place occupies a very interesting country, Trinidad and Tobago. Although, as you may be familiar and you're following one or another way the market, still we have LNG cargoes coming from Russia. Russia accounts for 3%.
Actually, Russian cargo, despite the war that has been started, despite all these politician talks, etc., still is an existing European market. While the market share is not so big, like accounts for 3%, but still some countries, some terminals are importing Russian cargo for their needs. This is, of course, not the case at Lithuania. Of course, we do not have any Russian cargo on that. That I can assure you. As you see, average utilization ratio was higher versus the market average of the market. We think this is a very good achievement, plus taking into account that our vessel actually is booked till 2032. The total capacity of FSRU LNG vessels is booked or sold to big market players till the year 2032.
If we're looking on the price of the gas price, which I touched just a bit, also a very interesting graph here just for you to have an understanding of how it correlates with how Baltic prices of LNG correlate, Baltic, sorry, gas prices correlate or not correlate with the TTF prices. As a graph, as you see, of course, correlation is, I mean, the trend is the same, but the difference exists. That difference in 2024, if we're taking, let's say, Lithuanian gas prices versus TTF gas prices, it fluctuates. Average difference is the spread is around EUR 3 per MWh. There are some months where we have very close or very close to the market, let's say, prices the same, or even it could be minus EUR 0.5.
Of course, there are the days or the months or the weeks where the price difference increases to EUR 7. Basically, this price spread is around EUR 3 per MWh. In the world, there are 47 FSRU vessels. The vessels like our INDE, there are 47, and 45 of them are operational. Two of them are, let's say, on the post-moot, meaning that if some prompt delivery will be needed in the market, they will be able to deliver. I mean, they will be able to make a regasification or be in that port where it is needed to be done, of course, if there is infrastructure allowing them to import the gas LNG products from vessels. Actually, the world consists of 47 FSRUs, I would say.
There are some movements in the market towards increasing the number of those LNG vessels, but they are not so big. It's around the maximum four vessels in the next couple of years could be in the market. The market is very, I would say, concrete, very precise, and the size is 47. We have INDE as one of our 47 FSRU vessels in the whole world. If we're taking information, it makes it worth mentioning about the stock situation, because sometimes maybe you are following the news, what is happening. Everybody's talking about the stocks, how much the stocks of the gas the European Union has. That, of course, affects directly the prices of the gas and eventually the prices of the production facilities, the prices for the end consumers. It is very important, the price of the gas in all, let's say, countries.
Stock level by the end of the last year was around 72%. Storage facilities were filled by 72%. Today, for example, we have around 40%. As you see, the natural gas import is definitely less than we used to have in the previous three years. This is also the tendency that, let's say, demand for the gas declined. Again, there are many reasons why it happened. I would say, more importantly and more interestingly, to see the future development, because many companies, energy companies, and as well industry and electricity plants, etc., really rely a lot on the gas. Gas is one of the most liquid and, I would say, transparent energy sources. Analysts predict that despite the green movement, let's say, of the market, demand for the gas will rebound and will increase.
Basically, the end of the year regarding the storage level was, I would say, quite okay, average storage level. Today, industry representatives of various industries are arguing with the politicians, aiming to change some requirements. For example, currently, there are requirements that major electricity power plants should have till the 1st of November, around 80% of the storage needed for the winter. Today, they are debating and trying to diminish that level from 80%- 70%. If that will be the case, most likely it will be the case that will allow the market to have some fresh air and relief, and that should positively affect the gas prices in Europe. Okay. We are coming to our business units. As I said, the biggest one, which accounts for 60% of revenues and then 65% roughly of the EBITDA, is regulated business activity.
This is our LNG vessel. Last year, despite the, let's say, operational activities, for example, as we are giving here some KPIs of operational activities, like how much we shipped vessels, it was 80 shipped vessels. It is a high increase versus the last year that we managed to receive around 1.4 million tons of LNG. We regasified around 2 billion cu m of natural gas. Those figures are, as you see, slightly below 2023. This is mainly because our vessel was in the dry dock before the purchasing and transferring the vessel into our balance sheet under our ownership. The vessel was standing in Denmark for almost one and a half months. Definitely, it was not operated. That, of course, directly affected the volumes that could be transshipped via our vessel and the regasification of the gas as well.
After the beauty salon, as we're calling and joking internally, the vessel came into the Klaipėda port. At the end of December, on the 6th of December, according to the law, the vessel has been acquired from Höegh, our operator. Currently, it's under Lithuanian flag. This is in our balance sheet. That also, going forward to our balance sheet metrics, you will see that because of this, the long-term assets that the company has increased. That was very big achievements and big events for the company, as I said, as well for our Lithuanian energy sector. If we take another business segment, Liquid Energy Market, here some also glimpse and view on the performance and situation of the market itself. According to statistical data in the last year, Baltic Sea ports transshipped around 52 million tons of oil products.
This is 17% below what we used to have in 2023. There are several reasons for that drop. One is that last year for oil refineries was quite a tough year because the margins for oil refinery decreased versus 2023. Obviously, oil refineries are also looking for various solutions in their efficiency; they diminished the production of oil. Therefore, that was the biggest impact affecting that decline of, let's say, drop in the tons that have been carried through all Baltic ports. Here we have Lithuania. As you see, Lithuania transshipped almost 3.6 million tons of oil products. This is, as you see, a decrease. Latvia has an increase. This is one of the reasons that they have the toll. It is a bigger trader, big trade in the Latvian market.
That trader had some products that he pushed through the ports. That helped to increase the volumes transshipped in Latvia. Estonia, as you see, is shrinking. What also tells that graph, as you see, is that Lithuania, I would say, is more or less on the stable level within the last four years, despite that drop in the last year. As you see, we are transshipping around differently from 3.6 to almost 5 million tons. This drop was not very heavy compared to Latvia and especially to Estonia. Klaipėda port transshipped 17% less various oil products versus the last year. Only one port in the Baltics, Ventspils, for the reason that I already mentioned, managed to increase the turnover and the volumes. So what is our share? KN's share of the market.
KN is the leader, obviously the leader in the liquid energy market between all the ports. Our share is around, fluctuates. Here the graph shows that the market share's fluctuation per month. In average, we are controlling around 48% of the market share compared with other Baltic ports. Of course, our aim is not to lose this market share and only to increase the market share. Therefore, the contracts with Orlen regarding the oil transshipment for the next three years will contribute a lot to that performance, to the future of our flows, and to put, let's say, everything on the track to make plans regarding investments, etc. This is a really good achievement that the company has and all tools not to lose the market share, but to increase it even more.
Basically, what I said, some financial information, I'm sorry, operational information in the last year, liquid energy terminals in company transshipped 3.4 million tons of liquid product. This is a 17% drop versus the last year. On the revenue side, we managed to diminish, to ease the drop to only 4%. Revenue-wise, decline was not so heavy. The revenue was around EUR 27 million. This was achieved because we managed also to negotiate very good conditions regarding our service, regarding our fees. Partly offset the drop of transshipped products of the situation that we have in the last year. What is very important in that business segment is important that some products that are demanded in the market, I would say maybe future products, especially in biofuels, the market share, the size of those products increases.
It has a tendency in the future to increase because biofuels is the product that has a rising demand from the various sectors, starting from, let's say, not only trucks, heavy industry, but also the ships industry, the aviation industry. Orlen itself also is investing into their production facilities in order to have those products to be able to be sold into the market. Accordingly, KN Energies also needs to invest into our facilities to be ready, to be prepared to serve those new products because they require different characteristics, technical characteristics, other things. One of the, let's say, investment plans, CapEx, long-term till 2030, are designated towards investments into bitumen products and to biofuel products and methanol as well. Commercial Energy business was very, very successful.
As I said, one of the reasons was that the company managed to gain four out of five operated LNG terminals in Germany. As I said, we created the company out towards there, and we made the preparation works. In 2025, the real business, let's say, will start. We are taking care of all operational issues and commercial activities of those terminals. Also, our Brazil activity was very successful, especially compared to what happened in the last year. Our Small-scale business was also profitable and viable and strong. Total revenues of that business segment increased by almost 60% from EUR 7 million- EUR 11 million. Also, as I said previously, that commercial activity is the biggest in terms of the contributor to our profitability. In new energy, new energy is our, let's say, word says new.
In new energy, this is a new business segment, which is actually currently so far doesn't have income. But this is our, again, future. In new energy, we see, let's say, three, maybe three basic lines where we are very interested in. It is a carbon capture project, hydrogen carrier project, and flow batteries. Here is only the initial stage of the development of those business, let's say, under that business unit, business directions. Depending on how we will succeed, how those projects will be economically wise, what it will be, the business cases, real business cases, it will depend as well a lot on the development and the size of that new energy business segment within the company's business portfolio.
We count a lot, and we think we have not only belief, but also the background, strong background that those projects, especially carbon capture, will materialize in the next two, three years. What so far the company managed to do, the company had a consortium of interested parties in that carbon capture business unit. We received a subsidy for the feasibility studies from EU amounting to EUR 3 million. That will help us a lot to boost that feasibility studies. After those feasibility studies will be finalized in 2025, we will see the next steps, how we'll proceed further, meaning if that business cases are in the line, on the line, we will proceed further with further investments into carbon capture.
Basically, I would say that in the new energy, carbon capture is, let's say, the cornerstone of the project that the company and the team within the company focus on. Also, we are looking and tracing what is happening in the hydrogen market, especially in carriage, in transshipment, in logistics, because the hydrogen market should mature or should increase to a certain level that will need some demand for transshipment and storage. Therefore, KN's role is in transshipment and storage of those various products. We are following the market. Also, we're launching some feasibility studies. We are contacting our clients, possible developers. In other words, we're trying to hold and to be in the line with what is going on within the market in order for us to be prepared to sell those kinds of services. Some words about very important topics, sustainability.
As you know, LNG, INDE is an emitter, is one of, let's say, the biggest emitters in Lithuania. This is the price of what we need to have secured and stable energy delivery. Here, as a company, we invest into the various grades of equipment and considering investments into changing some raw energy sources, which we're using towards more climate neutral ones. We managed to decrease slightly, say, the emissions by 2% in the last year. Our goal, of course, is very ambitious. Again, depending on how market, full market will go and will develop in the future. Maybe right now you're reading in the newspapers and some already since, let's say, the changes in the United States administration happens after the elections, there are some different movements of the market.
The biggest companies, all acceleration companies, also they are reshaping their strategy towards the, let's say, climate neutral. Of course, the companies, as we are, we need to be very, let's say, in the right position here, meaning we need really to pay attention a lot on the green things, obviously, but also need to follow the market and to be prepared to react to the things. Let's say the time and the efforts that the company is spending is quite a lot because our shareholders, our stakeholders are giving good, let's say, pressure in the good manner of the words towards our sustainability things. The company is following a lot of metrics. Also, we are heavily involved into the audit preparations of the ESRS principles, despite the fact that those will be obligatory starting from 2026.
Company already decided to have those audits done and accomplished in 2025, so a year before. Also, as a part of our achievement is that we obtained an ESG Transparency Partner badge. We received from Nasdaq quite high score, 9.8 in Sustainability Index. Our attention towards sustainability and all topics are very, very on high level, very important ones. Coming back, wrap up to my presentation to the financial results. Actually, I already basically a lot of things mentioned. I will not repeat myself here. Really, last year, we have very strong in terms of all the KPIs, in terms of the revenues, in terms of EBITDA, net profit, and adjusted net profit. Accordingly, having better results, our profitability ratios increased, especially versus the previous years that we had.
Here, I would say maybe I would like to point out that because of the good net profit, our return on equity increased almost to 8.5%. In our industry, let's say, in midstream industry, in heavy infrastructure and industry, this is really high, high ratio. Making a short glance on our balance sheet, what is changes if we take 2024 versus 2023? Long-term assets here basically is our FSRU vessel, as we see, increased. The majority of our, of course, of our balance sheet comprises of long-term assets, accounts to EUR 430 million. On the working capital, we basically have the cash, EUR 17 million, and deposits, EUR 45 million. Only the minor part is the rest. The company doesn't have any, let's say, issues, big issues regarding the debtors or stocks. Basically, we have long-term assets and the cash.
On the equity side, on the liability side, we have our equity, EUR 160 million, and we have our financial liabilities, EUR 330 million. Those liabilities are long-term loans received by NIB and EIB. Those loans are long-term, as I said, till 2044. They are, of course, guaranteed by the states. KN is one of the few companies in Lithuania having the state guarantees, meaning that if we are analyzing the company's balance sheet and when we are talking with financial investors as well with the various financial institutions, everybody understands and reads slightly differently our balance sheet if it relates to the debt level or net EBITDA to debt level because our debt loan is guaranteed. Basically, it's free of the risk. On the leverage metrics, as I mentioned, the debt is only long-term debt is guaranteed by the state.
The net debt ratio is around 5x. If we took a debt service coverage ratio, the DSCR, it's more than 2x, so it's is very high. Cash flow, last year, cash flow was also positive. The free cash flow, taking out dividends that the company paid in the last year for 2023, EUR 5 million. We end around EUR 15 million of free cash flow. We had investments around EUR 22 million, excluding the vessel. The vessel was bought, the price for the vessel was EUR 138 million. CapEx out of EBITDA, excluding one-off, let's say, our vessel accounts for 45%. It increased a lot versus 2023.
I would say I would predict that the next following years, the level of the CapEx out of the EBITDA will not be less than that figure because we are going heavily into the investment into CapEx program, which is quite intensive. We expect to invest, depending, of course, on various investment projects and feasibility, economical feasibility as well. Our plan to invest till 2030 is around EUR 400 million, where approximately 25% should be company's own means, 30% various subsidies, and the rest banking loans. The company this year will start addressing the commercial banks to finance its activities. So far, we have very good feedback and very big demand from our, let's say, financial institutions to step in and to finance company's needs for the investments, which will, on one hand, should enhance profitability and expansion of commercial activities.
I just remind you that commercial activities account to approximately 40% of our EBITDA and 45% of net profit. Our aim is within the next three years to make a reverse from 40%- 60% to increase the commercial activity part. This is what we are looking forward and giving our efforts. The rest will be invested into the, let's say, maintenance CapEx that the company needs to have in order to operate the jetties, to operate the facilities, to operate the FSRU. Basically, this is it. Actually, I'm not going further on. I already mentioned everything. Thank you for listening to me and waiting for the comments and the questions.
Thank you for the very informative presentation. I would like to remind everyone, if you'd like to submit a question, you can do so in the Q&A section at the bottom of the screen. The first couple of questions we received were regarding dividend policy. When will the company's strategy and stable dividend policy be updated? How much are you planning to pay out in dividends this year?
Thank you. It's a good question. Of course, dividend policy of KN is one of the key drivers or should be the key drivers for the share price. I would say currently, maybe I will comment in this way. Currently, we have government regulation, which is obligatory to all state-owned companies. I do not want to mention them, those, and definitely you can find them, meaning that our dividends are calculated, basically speaking, depending on how much return on equity we are earning. Having that formula, we know pretty much how much we should pay dividends. This is one thing, another thing, as I said, company needs to invest.
Of course, company needs to secure its cash flows in order to finance its operations. What it means, it means that the company will be going and trying to agree upon with our main shareholders upon the long-term dividend policy. Our aim is to have at least for the next three years. This is our plan. To have some kind of agreement because all, let's say, the major energy companies, if you're following or not, Lithuanian energy companies have certain, let's say, certain different agreements towards the dividends. The dividend policy, Ignitis has slightly different than EPSO-G Group controlled companies, Amber Grid and Litgrid also have slightly different ones. We would like also to have slightly different one. If the company will be able to agree upon, we will announce as soon as possible our dividend policy for the next three years.
What relates to what regards to 2024? No, I would not, do not want to comment, but basically, let's say regulation is in place right now and most likely we should follow. Thank you. I see the question, if I may, Emilija, regarding the FSRU and the KN balance. In the future, there would be some differences versus the last year. One is the big one. In the last year, usually we had very huge fluctuation in unrealized forex, let's say, exchange rate because of that liability nominated in US dollars. Of course, after acquisition, we do not have such, let's say, fluctuation anymore. We will see our net profit will be very close to adjusted net profit. This is one thing.
If we go on the operational side, operational side, meaning the OpEx expenditures here, it's not a very straightforward answer because despite the fact that we have FSRU in our balance sheet, anyway, we are, of course, high in Höegh LNG as an operator because they have experience to operate this kind of the vessels and have that regasification thing. They are our partners where we are paying their bills, in other words. Our aim, of course, is to get more and more and more expertise here. I would say that looking forward, maybe not to the next year, but to the next three, four years, definitely to gain more. Of course, obviously, after gaining more, let's say, to have some efficiency solutions that should lead to some positive impact into our, let's say, cost-based related to the FSRU operation of the FSRU vessel.
Carbon capture process is a technique, let's say, where emitter, for example, is emitting the carbon emission. I am not an expert as well, a technician, but basically, your idea is to use the technology to capture those emissions, to, let's say, freeze them, put into the transportation, then transport into the terminal, and then from terminal into the vessel, and the vessel goes into the sea and simply they are buried into the sea. This is the, in simplified version, this is the process. That carbon capture process is, this is not only that KN is doing at the moment in the market, of course, and Europe, there are projects, familiar projects that the companies are involved in different phases.
Taking into account, you know, the, let's say, the, no, I would say not unclarity, but anyway, still a big mark regarding carbon emission itself because right now we can buy emissions if you are lacking in the market, these certificates. The market, you know, in the future could change, meaning that you are, those certificates should be less and less. That will be a pressure on the emitters what to do. They should need to close their production, yes, or they need to find the solutions how to capture those emissions. One of the solutions, of course, if they will be economically wise, is this carbon capture, which I explained a couple of minutes ago. I see that the also question regarding the dividends, so I don't want to repeat myself.
I see the question, any active negotiations for new commercial energy projects? Yes, we are active. We're active. We're active a lot. If we take Europe, Europe is, I would say, a mature industry. Here in Europe, we need to, I would say, secure our contracts that currently we have and to maybe expand those because there is a room for certain services, additional services that we could provide to our client. In Europe, we are trying to do this via expansion and via long-term securing of future contracts. Apart from Europe, other countries like Latin America, Asia, here we see potentiality. Of course, they are long-term projects, not easy one. It's not like they are going and buying like in a supermarket, the chairs or tables or spoons.
Of course, our team is working hard and we have definitely under our pipeline certain projects that we really would like to scale it up. This is one thing. Another thing that really we also looking and working hard that we would like to be a financial investor in certain projects with the big partners, big oil companies. For example, as in Brazil, our partners are BP company and Brazil big energy company. We are really also working here towards this possibility to be not only as a, let's say, service provider, but also as a co-investor into the LNG facility. We are thinking and doing the steps towards here. Thank you.
One more question we received in advance. Are there any foreseen impact or changes to the company due to the change of the government in Lithuania?
Emilija, sorry. What was the question?
Are there any changes to the company due to the change in government in Lithuania?
No, no, no, no. There are no changes. I would like to remind you, our CEO has been appointed for the next four years' decade at the beginning of last autumn. Here everything, let's say, settled. Government, current minister, he's really professional and he used to be the minister before. No changes and we really have very good connections from the good point of view, professional connections and relationship. We have a strategy, energy strategy, Lithuanian Energy Strategy. Actually, KN is a part of that. Definitely we are following our national strategy and Lithuania is not changing it. No, no changes.
We're really happy about, you know, really connections with the ministry and thanks for their support in the things because, of course, some of the things are, you know, anyway, this is a state company. It's controlled. You need to be very cautious versus the market companies and etc., etc. Sometimes you need big support for the big movements. For example, the same hedge activity, it's not so easy. In market company, you can do easily. Here we have certain regulations and things. When you're doing the things, you're achieving the results.
Okay. The very strong results in LNG segment were achieved, but it does not seem sustainable in the future. Any thoughts on that?
Let's say if we're talking the Commercial, if this is Commercial Energy business, I would say that the question is not maybe it's not about sustainability because our contracts, let's say, in Brazil, we have contracts 12 years. In Germany, from two to five years. Of course, our aim, as I said, to prolong them when they expire and to expand. I would say that it's not like unsustainable. If we're talking about a 10-year period, this is really a really strong period. Only the question is how much you can increase and scale it up?
I would say what currently we have, we definitely will not lose that stream of the revenues and those hopefully revenues and the cash flow from those activities will be not at a less level that you used to have in 2024 for the next five to 10 years. I would say this is secure. And regarding scaling, this is another topic which I already explained. We're looking forward a lot to scale it up. Current revenues, they are more or less secured for the next five to 10 years.
It looks like we've covered most of the questions so far. If you have a question, please submit it now. It seems there's no more questions. On behalf of KN Energies and Nasdaq Vilnius, thank you everyone. It was a pleasure being with you today. The recording of the presentation will be available on the Nasdaq Baltic YouTube channel. Thank you for a very informative conference and have a great day.
Thank you. Have the same to you. Thank you, Emilija, and to all participants. Have a great weekend and good finish of the Friday. See you next time. Goodbye.