Croatia, HEP recorded a net profit in the amount of 135 million euros in 2021

, SEE Energy News

Croatia state-owned power utility HEP recorded a net profit in the amount of 135 million euros in 2021, which is 30 % less compared to the previous year.

The beginning of 2021 was marked by a catastrophic earthquake which struck the central part of Croatia on 29 December 2020. In line with the conclusions of the Croatian Government, HEP Group’s companies conducted measures of writing off debt for energy consumed in households
in the regions struck by the earthquake throughout 2021. The total of 10.5 million euros was written off.

Stated crisis circumstances were followed by a rise of wholesale prices of fuels and electricity. This trend of price increase, noticeable since the half of the year extremely intensified in Q4 of 2021, and it was the main reason of operating profit decrease as compared to 2020.

The total electricity consumption in Croatia in 2021 amounted to 16.5 TWh, with an increase of billed electricity to commercial customers by 746 GWh and to household customers by 364 GWh.

The total sales of HEP Group’s suppliers in the domestic market increased by 780 TWh (5.6 %) compared to 2020, and it totaled at 14,683 GWh (89 % of the market). The sales of HEP Opskrba amounted to 8,090 GWh, marking an increase by 267 GWh, and the market share was reduced from 50.9 to 49 %, compared to 2020. The sales of HEP Elektra totaled at 6,593 GWh, which marked an increase by 513 GWh, while the market share rose from 39.5 to 40 %.

2021 was marked by favorable hydrology, so hydropower plants generated 6,805 GWh of electricity, which is by 1,466 GWh (27.5 %) more than in 2020. Thermal power plants and combined heat and power plants generated 4,020 GWh,which is 52 GWh less than in 2020. Nuclear power plant Krsko delivered 2.7 TWh, marking a decrease by 311 GWh (10.3 %), taking into consideration a regular overhaul conducted in April 2021. HEP’s solar power plants and biomass-fired combined heat and power plants generated a total of 23 GWh, while HEP’s first wind farm Korlat, which became operational in 2021, generated 173 GWh of electricity.

Operating revenues amounted to 2.12 billion euros, marking an increase of 211 million euros compared to 2020, primarily as a result of increased income from electricity sales totaling at 255 million euros (16.7 %), income from the lease of LNG terminal capacity totaling at 23.2 million euros and income from gas sales by 14.2 million euros (24.4 %).

Through electricity sales, the Group generated 1.78 billion euros, marking 84 % of its operating revenues. The annual increase of 16.7 % is a result of higher income from electricity billed to commercial and household customers, along with higher prices of electricity supply to commercial customers, as well as higher export of electricity along with higher prices of exported electricity.

Revenues from the sale of thermal energy totals at 94.2 million euros and makes up 4.8 % of total operating revenues. It is by 4.5 million euros higher, due to an increase in demand by 8.4 %, along with a 3.1 % lower average selling price.

Revenues from gas sale to end customers amounts to 72 million euros, making up 3 % of operating revenues, which is an increase of 14.2 million euros in comparison to 2020, due to the rise in gas sale (17.4 %) as a result of expanding supply on other distribution areas and the takeover of customers from Gradska plinara Krapina and Darkom, marking an increase of sale in other distribution areas by 36.1 %.

Operating expenses amount to 1.97 billion euros, marking an increase of 344 million euros compared to 2020. The increase was affected by higher expenses of electricity procurement (52 %) as a result of a higher purchase price of electricity, higher import and higher fuel expenses (60 %). This was primarily a result of higher prices of coal and natural gas, as well as of higher costs of CO2 emission (78.3 %), due to higher price and larger quantities of emission units. The cost of gas procurement for market supply totaled at 54.3 million euros and is higher by 28.5 million euros in comparison to 2020, as a result of higher gas procurement along with a higher average gas purchase price.

HEP Group was one of the biggest investors in Croatia in 2020 as well. Its investments totaled 400 million euros, including the investment of 32 million euros in NPP Krsko.