Bulgaria, NEK achieved record net profit in 2021 in the amount of 352 million euros

, SEE Energy News

Bulgarian National Electricity Company (NEK) achieved record net profit in 2021 in the amount of 352 million euros, compared to 22 million euros net profit in the previous year.

The increase in almost 1,500 % and the main reason for such huge increase are high electricity prices on the free market (99 euros/MWh on average in 2021) and hydropower plants operated by NEK have very low production price.

The company’s revenues from electricity sale rose by 60 % to 1.18 billion euros in 2021, which includes revenues from sales on the free market, which rose by 459 % to over 500 million euros.

On the other hand, electricity generation of NEK’s HPPs increased by 51.6 % year-on-year, which resulted in increased profits because production price remained unchanged (44 euros/MWh), while prices on the free market soared.

Revenues from the Electricity System Security Fund, established to provide compensation for US- operated TPPs and small RES producers, also rose by 66 % year-on-year, reaching 818 million euros.

However, in the first quarter of 2022, NEK recorded a loss of some 4.4 million euros, because the company used last year’s profits for early repayment of a 600 million euros loan, the company took to settle its obligations in the arbitration dispute with Russian Atomstroyexport regarding the NPP Belene project.