Bosnia and Herzegovina: RiTE Ugljevik – profit loss estimated for future period

8. May 2020. / SEE Energy News

Coalmine and thermal power plant (RiTE) Ugljevik, operated by power utility ERS, estimates that it will record losses in total amount of 37.5 million euros in the next three years. The business plan for the 2020-2022 period, which was adopted by the shareholders at the last general meeting held in April, estimates that the loss in this year will be 8 million euros, 11.4 million in 2021 and 18 million euros in 2022.

According to the adopted plan, the planned business result in the observed period is largely a consequence of the start of operation of the flue gas desulphurization plant, which will cause additional own electricity consumption of about 73 GWh per year. Also, general overhaul of the power plant is planned in 2020 for 50 days, as well as for additional 75 days in 2022, which is significantly more than in previous years.

On the other hand, the company plans investments of almost 110 million euros. Most of the funds, namely 78.5 million euros, would be provided by obtaining a loan, while the rest would be requested in its own funds and grants. However, the Investment-Development Bank (IRBRS) noted that it finds the company’s plant to operates under significant losses in the next period unsustainable

Last year, RiTE Ugljevik recorded a net loss in the amount of 2.2 million euros. However, the company recorded a net profit in the amount of some 775,000 euros in the first quarter of 2020, compared to a net loss of around 300,000 euros in the same period last year. Its revenues in the first three months of the year rose by 12.2 % compared to the same period in 2018 and amounted to 16.5 million euros. Total expenditures rose by 5.8 % to 17.5 million euros.

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