Croatia, HEP Group recorded consolidated net profit of 166.8 million euros in H1 2021

, SEE Energy News

According to unaudited financial report, Croatian state-owned HEP Group recorded consolidated net profit of 166.8 million euros in the first half of 2021, which is about 30 % higher compared to the same period last year.

Total electricity consumption of customers in Croatia in the first half of 2021 amounted to 7.988 GWh, marking an increase of 562 GWh (7.6 %) in comparison to the consumption in the same period last year. There was an increase in billed electricity to household category by 209 GWh and to commercial category by 351 GWh. The total sale of HEP Group’s suppliers rose by 329 GWh (4.9 %) in comparison to the same period 2020, and in the first half of this year HEP Group’s market share totaled at 88.8 %, whereas it was 91.1% in the same period the year before. The sale of HEP Opskrba rose by 121 GWh (3.3 %), 104 GWh of which marks an increase of sale to the commercial category, and 17 GWh to the household category.

HEP Elektra, which has been supplying households within universal service and commercial category customers within guaranteed supply, recorded higher sale by the total of 207 GWh, whereby the sale to household category increased by 184 GWh and to commercial category by 23 GWh.

The first two months of 2021 were marked by extremely favorable hydrology with increased energy inflow value, so the share of hydro power plants in the structure of electricity sources totals at 42.3 %. Hydro power plants generated 4,170 GWh, which is 1,709 GWh more in comparison to the first half of 2020.

As a result of favorable hydrological conditions, electricity procurement at the market was reduced by 238 GWh (7.6 %), which affected the reduction of operating expenses. The total of 2,903 GWh was procured, 615 GWh was electricity purchase from RES and cogenerations in the incentive system, and 2,288 GWh was import and procurement from traders and producers in Croatia and procurement for covering losses in the transmission network. Thermal power plants generated 1,658 GWh, which marked an increase of 6 GWh (0.3 %). Nuclear power plant Krsko delivered 1,204 GWh, which represents 12.1 % of HEP Group’s disposable electricity.

Operating income totals at one billion euros, marking an increase by 5.2 % in comparison to the same period 2020. Income from electricity sale was 820 million euros and in comparison to the same period the year before it rose by 11.9 % as a result of income from electricity sale at the international market and export of electricity surpluses, as well as increased sale of electricity to household customers in Croatia, as a result of higher billed consumption. The income from the sale of heat energy increased by 3 million euros, whereby the income from gas sale decreased by 34 million euros, due to the cessation of performing the activity of supplier at the wholesale gas market, which HEP performed by 31 March 2021.

Operating expenses in the first half of 2021 amounted to 803 million euros, marking a decrease by 1.1 % year-on-year. The costs of electricity procurement total at 168.5 million euros and are by 8.4 % higher in comparison to the same period the year before. Cost increase is a result of a higher price of imported electricity, whereas imported volumes are lower. Energy fuel cost in the first half of the year totals at 97.7 million euros, and it increased by 0.4 % due to higher prices of natural gas and coal as well as a bigger amount of used coal. The cost of gas procurement for sale at the wholesale market was reduced by 59.3 million euros as a result of cessation of performing the activity of supplier at the wholesale market, whereas the cost of gas procurement at the market increased by 44.8 %.

The investments were achieved in the amount of 145.5 million euros, which includes replacements, reconstructions, revitalization of existing energy facilities, the construction and preparation of construction of new energy facilities as well as connecting customers.