Both revenues and profits grew in the first half of the year.
The operating income of the Croatian Electric Company (HEP) group amounted to 7.8 billion kunas in the first half of the year, 9.4 percent more than in the same period last year, while net profits reached 1.35 billion kunas, which is about 10 million more, reports N1 on September 1, 2017.
The group’s business report also states that electricity sales revenues in the first half of the year increased by 224.2 million kunas. This growth was due to higher sales of producers in the system of incentives for renewable energy production, higher prices of electricity sold on the wholesale market, and greater supply to customers in the region, the report says.
The report also explains that gas sales revenues decreased by 81.5 million kunas, although the volume of gas sales increased both in the wholesale market and in the supply of end customers.
Revenues from of the sales of heat were down by 1.6 million kunas.
HEP group’s operating expenses amounted to 5.9 billion kunas in the first half of the year, which is 10.6 percent more than in the same period last year. “Due to increased production of electricity and heat in thermal power plants and significantly higher coal prices, energy costs increased by 244 million kunas,” the report states.
Electricity procurement costs were up by 249.8 million kunas due to larger purchases and higher prices of imported electricity. Wholesale gas procurement costs were reduced at the same time due to lower purchase prices.
The report points out that growth in economic activities, a colder winter and higher temperatures in the early summer have led to an increase in electricity consumption in Croatia. Gas sales growth was influenced by the expansion of gas supply through the acquisition of customers outside the area covered previously by the HEP group’s distribution network in Eastern Slavonia. “Also, the HEP group has increased the number of customers and the sale of electricity in Slovenia,” the report says.
It is also noted that the first half of the year was marked an unfavourable hydrological situation, so hydroelectric power plants produced 2.4 TWh of electricity, which is 32 percent less than in the first half of 2016. “Due to unfavourable hydrology and increased electricity demand on the domestic and foreign markets, electricity purchases increased by 590 GWh or 20 percent. and the production in thermal power plants grew by 387 GWh, which contributed to the growth of operating costs,” reported the HEP group.
The report also states that investments amounting to 833 million kunas were realised in the first half of the year, including replacement, reconstruction and revitalisation of existing energy facilities, construction and preparation of new energy facilities and consumer connections.
The group’s liquidity was satisfactory, and obligations towards suppliers were settled within deadlines and solely from cash flows from operations.
The report also states that the HEP General Assembly decided in early June to pay 794.3 million kunas from the profits for 2016 to the state budget. At the beginning of July, 600 million kunas were paid, while the remaining 194.3 million kunas should be paid by the end of the year, taking into account the adequacy of HEP’s liquidity, according to the report.
Translated from N1.
