On the impact of coronavirus (COVID-19) on the activities of KN
Due to the declared quarantine to limit the spread of coronavirus (COVID-19) on the entire territory of Lithuania and protective measures and recommendations of the Lithuanian government, KN (further also the Company) informs of major precautionary and organizational actions to ensure safety of Company’s employees and business continuity.
Right after the state-level emergency was declared in Lithuania, the Company adopted a range of health safety precautions for its employees and partners. Since 2020-03-13 the employees of the Company, whose work specifics allow, work remotely. For the employees, who cannot work remotely, additional health safety measures have been provided and new health safety related practices in the terminals of the Company have been implemented. All measures are being reviewed and updated on a daily basis.
Likewise, the Company activated business continuity plan and risk management team has been set up to monitor the situation on a daily basis and adjust action plans, if needed.
Even in the given extraordinary circumstances KN continues its operations as usually – last week two oil tankers and two LNG cargoes were accepted at the terminals of the Company. This week two more LNG cargoes are further expected at Klaipėda LNG terminal. The Company is monitoring the situation and maintains close communication with major clients, suppliers and partners on regular basis concerning their plans and fulfilment of contractual obligations. Up to date, the service provision for KN clients takes place according to the agreed schedules and plans.
As a socially responsible business, KN has also donated some personal protective equipment from its own stocks for local hospitals in Klaipėda in need and allocated financial aid for purchasing medical equipment to hospitals and medical institutions. The Company will continue this type of support and consider other initiatives within our capabilities.
Although the Company has not been instantly impacted economically by the quarantine inflicted repercussions, KN is carefully monitoring global economic development and possible long-term financial impact for the Company. In the Company’s top management’s assessment, currently, there are no well-established grounds for severe concerns regarding Company’s financial sustainability. More information will be provided in the annual financial audited report of 2019.
Source: Klaipedos Nafta