Bulgarian state-owned National Electricity Company (NEK) recorded a net profit in the amount of 420 million euros in the first nine months of 2022, compared to a profit of 142 million euros in the same period last year, due to increased electricity prices.
The increase in profit is caused by a 93 % increase in revenues from electricity sales, which reached 1.58 billion euros in the January-September 2022 period. The company’s total revenues increased by 48 % year-on-year to 2.02 billion euros, while its expenditures also increased to 1.6 billion euros in the first nine months of the year from last year’s 1.24 billion euros.
In the first nine months of 2022, NEK purchased 10.7 million MWh of electricity, 0.2 % more than in the same period of 2021. The total amount of electricity purchased under long-term contracts or at preferential prices increased by 20.1 % year-on -year to 7.25 million MWh in said period.
However, NEK’s financial performance in the first half of 2022 was negatively affected by higher CO2 prices of some 80 euros/ton on global markets in comparison to 51 euros/ton approved by the Bulgarian energy regulator KEVR for the 2021-2022 period. In the new 2022-2023 pricing period, CO2 emissions prices were increased to 91 euros/ton.
Out of a total 22.3 million euros planned for investments in 2022, NEK realized investment in the amount of 6.7 million euros in the January- September period, or about 30 % of the allocated amount.