“Bulgarian Energy Holding EAD and its subsidiary companies make every effort to maintain their normal working process in the conditions of COVID-19 rapid expansion, in compliance with the Law on Measures and Actions during the State of Emergency and the
Currently, all electricity generators within the structure of Bulgarian Energy Holding EAD operate without interruption and provide the required quantities of electricity under bilateral contracts, fulfill their quota obligations for the regulated market and, strictly comply with their commitments to the European Commission under Case AT. 39767 BEH – Electricity for sale of certain quantities of electricity in order to provide necessary liquidity on the Independent Bulgarian Energy Exchange (IBEX).
For the time being, the energy sector, as part of the utilities services sector, is less affected compared to other sectors such as retail trade and tourism. However, the possibility for occurrence of market risk is being taken into account. The prolonged period of economic downturn is likely to result in lower electricity and natural gas demand and higher volatility in wholesale prices. A possible decline in electricity and natural gas consumption and a contraction in the revenues and profits of subsidiary companies may lead to revision of the corporate investment activities, as well as to cost optimization.
In conclusion, we consider that COVID-19 has so far a limited adverse effect on the financial position and liquidity of BEH EAD and the subsidiary companies. For the time being it is difficult to apply valuation of existing risks. In order to provide more accurate and detailed information on the impact of COVID-19 on the operational and financial position of the Financial Group, Bulgarian Energy Holding EAD has required each of its subsidiaries to conduct evaluation of the current and potential impact of COVID-19 on their activities. After the required information has been collected and analyzed, it will be further published and disclosed to investors, customers and partners of Bulgarian Energy Holding EAD and its subsidiary companies.”
