Croatia, HEP recorded a net loss in the amount of 151 million euros in H1 2022

, SEE Energy News

Croatian state-owned power utility HEP recorded a net loss in the amount of 151 million euros in the first half of 2022, compared to a profit of 166 million euros in the same period last year.

Total electricity demand in Croatia was 8,293 GWh, which is 306 GWh or 3.8 % more than the consumption in the same period the year before, with 299 GWh and 7 GWh more electricity billed to business and household customers, respectively.

Total sales of HEP Group suppliers increased by 522 GWh (7.4 %) compared to the same period in 2021, accounting for 91.8 % market share compared to 88.8 % in H1 2021. The sales by HEP Opskrba increased by 206 GWh (5.3 %), of which 192 GWh was sold to business customers, and 13 GWh to households. The sales by HEP Elektra, which supplies households as part of the universal service and business customers within the guaranteed supply, increased by a total of 316 GWh, of which 306 GWh was sold to business customers and 10 GWh to households.

The first half of 2022 was marked by extremely unfavorable hydrological circumstances characterized by a reduced energy value of the inflow accounting for a 27 % share of hydro production in the structure of electricity sources. Hydropower plants produced 2,570 GWh, which is by 1,601 GWh less than in H1 2021.

Thermal power plants produced 2,152 GWh of electricity (23 % of HEP Group’s available electricity), which was 494 GWh (30 %) more than in the first half of 2021. NPP Krsko supplied 1,486 GWh, which accounted for 16 % of HEP Group’s available electricity. A total of 3,283 GWh was procured, of which the off-take of electricity from renewable sources and high-efficiency cogeneration in the incentive system accounted for 929 GWh, while import and procurement from traders and producers in Croatia and the procurement for covering losses in the transmission network accounted for 2,354 GWh.

Operating income of 1,32 billion euros increased by 319 million euros (31.9 %) compared to the same period last year. Income from the sale of electricity amounted to 1.11 billion euros, an increase by 295.5 million euros (36.1 %) compared to the same period last year due to increased demand by business customers at higher electricity prices and increased electricity prices for household customers as well as fees for the use of the transmission and distribution network from 1 April 2022.

Income from the sale of thermal energy increased marginally by some 40,000 euros, as well as income from the sale of gas by 9.7 million euros due to a rise in the average selling price to business customers, higher demand as a result of the expansion to other distribution areas and assuming the role of a guaranteed supplier from 1 April 2022. All other operating income increased by 14.8 million euros.

Unfavorable hydrology at higher prices of imported electricity, natural gas and coal impacted the rise of operating costs, which amounted to 1.52 billion euros in the first half of 2022, by 715 million euros (89.4 %) more than in H1 2021. Electricity procurement costs amounted to 514 million euros, an increase by 346 million euros (206.2 %) compared to the same period last year primarily due to a 255 % price increase of imported electricity and the increase in the mandatory off-take of total electricity produced in the incentive system from 40 to 60 %. The cost of energy fuel in H1 2022 amounted to 326 million euros, an increase by 229 million euros (235 %) due to higher prices and the use of natural gas and coal. The cost of gas purchase for market supply increased by 46.3 million euros (229.7 %) as a result of an increased volume of procured gas at a higher average gas procurement price. All other operating expenses increased by 94.2 million euros.

Investments in the amount of 133 million euros were made, including replacements, reconstructions, revitalization of existing energy facilities, construction and construction preparation of new energy facilities, and consumer connections.