Croatia: Power utility company HEP marks revenue growth of 16% despite loss on power supply market, 100MEUR net profit

HEP Group in the first half of the year generated consolidated net profit of 100MEUR (762 m kuna). The sessions of the General Assembly and the Supervisory Board of HEP on which Supervisory Board adopted the Report on the operations of HEP Group for the period January – June 2013, in which it is emphasized that the HEP Group consolidated net profit of HRK 762,3 million in the first half of this year.

According to HEP press release, thanks to last year’s increase in the regulated price of electricity and heat, sales revenue is increased, due to very favorable weather conditions and a record hydropower production, production costs and electricity procurement were significantly reduced.

In the first half of the year, the growth of operating revenues of HEP group was by 16% and decreased operating costs by 6.9%, compared to last year’s first half. Thanks to the satisfactory liquidity, all liabilities to suppliers were settled by the due date.

Total debt as of June 30 of this year decreased by 9%, compared to the beginning of the year, as they repaid all short loans. Investments of HEP Group in the first half amounted to HRK 739.4 million, which was invested in the replacement, reconstruction, revitalization of existing power facilities, construction and preparation of the construction of new energy facilities and connection of consumers.

The Supervisory Board has adopted the Report on the implementation of the investment plan of HEP Group in 2013 and is familiar with the actual activities of the program of work of the HEP from 2013 to 2016, during the certification process HOPS, and the location and activities of HEP in the electricity market. General Assembly of the Supervisory Board proposed that the auditor of HEP and of HEP Group subsidiaries for business in 2013 nominate BDO CROATIA and Audit, which General Assembly adopted and appointed mentioned auditors. The General Assembly adopted the Decision on the selection of Mirko Zuzic to be Member of the Supervisory Board.

Source; Serbia Energy See desk/HEP

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