The Bulgarian Energy Holding reports a significant increase in profit for 2019. The earnings before tax from the activity of the BEH group amounts to BGN 419.2 million, it is clear from the report of the holding. Profit increased by 292.2% in just one year, while the holding ended 2018 at a loss of BGN 218.1 million. Thus, in just one year the improvement in the financial result was by BGN 637.3 million. The company`s assets are also growing and reached BGN 18.7 billion. The increase is mainly due to the higher value of property, machines and equipment. The operational cash of the BEH Group increased by 25.7% for the year and reached BGN 1.68 billion, evident from the financial statements.
The good financial condition of BEH in 2019 is also facilitated by due to the reduced costs for purchase of emission allowances – BGN 452.6 million in 2019, compared to BGN 641.8 million in 2018.
It is also clear from the results that in 2019 NEK purchased significantly larger quantities of electricity from the American power plants – TPP AES Galabovo and TPP ContourGlobal Maritsa East 3. This is one of the reasons for the better performance of both BEH and NEK in particular, states the report.
In general, in the electricity segment, BEH reported a decrease in revenues from both sales on the regulated market and trading on the energy exchange. However, revenues from natural gas sales are increasing due to the new tariff model.
Kozloduy NPP and ESO have paid additional dividends to BEH
The main revenue item in the segment “Administrative activity” in BEH is the dividend revenues of the subsidiaries. In 2019, the reported dividend income reached BGN 354.4 million and was BGN 80 million lower than in the previous year. However, two of the companies in the BEH Group have provided an additional dividend to the parent company. Thus, BEH has received an additional dividend of BGN 150 million from Kozloduy NPP and another BGN 100 million from the Electricity System Operator.
Obligations of Toplofikacia Sofia
The report records the liabilities of Toplofikacia Sofia to BEH as a significant credit risk. These liabilities are 58% of the total amount of all receivables that the holding has or in other words over BGN 632.4 million. The main part of these receivables are old debts of Sofia District Heating to Bulgargaz.
Investments
BEH`s investment priorities are aimed at the completion of the gas interconnector Greece – Bulgaria, it is clear from the company`s report. It is forecasted that the construction of the interconnector will be completed by mid-2021 after that begin the commercial operation.
After the complete liberalization of the energy market, the revenues from the sale of electricity are expected to increase.
The report also includes Bulgargaz`s forecasts for reimbursements to customers after the renegotiations with Gazprom. The amount for reimbursement is over BGN 102 million according to the company`s estimations.
Decline in electricity generation
In 2019, the gross electricity generation in Bulgaria decreased by 5.18% and amounted to 44.1 million MWh. Domestic consumption decreased slightly by one percent to 38.3 million MWh compared to the previous year. Electricity exports from the country fell by a quarter to 5.8 million MWh. TPP “Maritsa East 2” has supplied 61.2% more electricity for the regulated market.
The gross electricity production of Kozloduy NPP has reached new records and last year was 16.5 million MWh, which is 2.7% more than in 2018.
The production of NEK`s hydropower plants decreased by 38.4% or by 2.3 million MWh. The reason for the decline is the dry year.
The financial report of BEH is published on:
https://www.bgenh.com/en/page/55/Financial-reports.html
Source: 3e-news