Bosnia: Power utility EPBiH marks net profit drop

, SEE Energy News

In the first six months of 2015, EPBiH produced a total of 3,356 GWh of electricity, 10% below the plant. Electricity prices in the region power exchanges and costs influenced the net profit loss.

Bosnian state-controlled power utility Elektroprivreda BiH said on Friday its net profit in the first half of 2015 was hit by additional costs and unfavourable FX effects.

The power utility said its net profit fell to 1.59 million euro through June  while its operating revenue dropped 4.1% to 225MEUR.

Financial performance in the first half of 2015 was affected by the incurred fee of 1.8MEUR on the basis of new legislation passed by Bosnia’s Muslim-Croat Federation, a spokesperson for Elektroprivreda BiH (EPBiH) stated.

Furthermore, in the first half of 2015 the company paid the Hercegovacko-Neretvanski canton 2.4MEUR in compensation for water use which took costs 4.2MEUR above the figure recorded a year earlier.

Unfavourable FX fluctuations also negatively affected EPBiH’s financial results, causing the company to lose an extra 1.2MEUR in the first half of 2015.

The company added that 2015 saw a significant increase in the reference price for the purchase of electricity from renewable sources and a decline in electricity prices in the regional market compared to 2014, both of which contributed to EPBiH’s deteriorated financial results.

In the first six months of 2015, EPBiH produced a total of 3,356 GWh of electricity, 10% short of plan.

The drop in production levels was caused by lower output at thermal power plants resulting from decreased coal supplies, lower natural inflow of water at hydroelectric power plants in the months of May and June, low costs of electricity and a rescheduling of planned overhaul works at thermal power stations, EPBiH said.

Elektroprivreda BiH’s net profit plunged to 1.6MEUR in 2014 from 18MEUR a year earlier while its electricity output fell 0.9% to 7,403.6 GWh.