Bosnia/Republika Srpska: TPP Ugljevik produced financial loss in 1H 2015

, SEE Energy News

Mine and Thermal power plant Ugljevik continues to “products” business losses in this year.

This public company made a financial debt by7, 5 MEUR for six months in 2015th, according to data from the financial report published on the Banja Luka Stock Exchange.

In the explanation of the business results for the period January – June this year, management has stated that the total revenues of RiTE Ugljevik amounted to 29,339,224 MEUR, while expenditures 37,099,538 MEUR and that the negative financial result was 7,760,314 MEUR.

They justify a negative operation by an attitude that it is less than the planned loss (9,266,656 MEUR) by 16 percent.

-Loss is not the result of non-fulfillment of production tasks, or increased operating costs. On the contrary, the electricity production in the amount of 769,256 MWh is higher than planned for 37,756 MWh, which is five percent more than planned – writes in the statement.

However, they added that revenues from electricity sales in the amount of 29,123,897 MEUR were not enough to cover expenses.

As management claims, on the amount of the reported negative results of business in TPP Ugljevik in the amount of about 7, 5 MEUR influenced overhaul of thermal power plant for a period of 37 days, but also a decrease in coal reserves in the amount of 408 thousand EUR, as a result of reducing the coal amount on the depot of thermal power plant “because of the tendency towards spontaneous combustion of coal, when the coal level is reduced to a minimum during the overhaul”.

Company Ugljevik and Thermal power plant Ugljevik made operating losses in excess of 3, 5 MEUR in the first quarter of this year.

This means that the spiral of negative business has just been continued, since RiTE Ugljevik also finished last year with a net loss of 5,632,159 MEUR.