Croatia: Power utility HEP business results for 1H2015 dominated by HPP increase production and costs increase

9. September 2015. / SEE Energy News

Power utility HEP Group achieved net profit of 178 MEUR in the first half, which is 1.7 percent better performance compared to the same period last year when net profit totaled 175 MEUR, announced Croatian Electric Power Company (HEP).

“Since the energy consumption will depend on economic developments and weather conditions, with the continuing stagnation of current economic activity at the level achieved at the end of 2014th, lower temperatures in winter have influenced the increase of electricity, heat and gas”, according to the consolidated financial report of HEP Group published on the Zagreb Stock Exchange.

From HEP stand out as favorable hydrological conditions that marked last year also have continued in the first half of this year, which has enabled considerable production in hydropower plants, with a share of 44.4 percent in the structure of electricity sources and lower production in thermal power plants, by which total operating costs were optimized.

According to the report data, operating income of HEP Group in the first half totaled 945 MEUR and compared with the same period last year it increased by 86 MEUR or 10 percent. From HEP mainly attributed that to the rise in revenue from gas sales to the wholesale market, which in the first six months amounted to 105 MEUR, which is an increase of 84,7 MEUR compared to the same period last year considering that HEP began with the performance of that activity in April 2014th.

Operating expenses of HEP Group totaled 746 MEUR in the first half of the year, they are higher for 122 MEUR, or 19.6 percent, to which, as explained, primarily impacted the higher cost of wholesale gas activities, amounted to 107 MEUR.

Cost of purchased power increased by 38, 8 MEUR (60.9 percent) compared to the same period last year due to higher imported quantities and a larger purchase of electricity in the incentives system of HROTE. Also, operating costs increased due to higher salary costs, despite the smaller number of workers, due to the increase in the contribution rate for health insurance from the gross salary and the implementation of the new Collective Agreement. Other operating expenses increased due to higher cost of buying emission units CO2 (carbon dioxide) due to higher prices, higher costs of billing and collection, the cost of measuring devices and costs for the paid services, according to HEP.

According to the data, trade receivables amounted 198, 5 MEUR and decreased by 48, 7 MEUR compared to the beginning of the year.

HEP Group investments amounted to 111, 5 MEUR in the first six months, which includes the replacement, reconstruction, rehabilitation of existing power facilities, construction and preparation for construction of new power facilities and connection of consumers, according to the consolidated report for HEP Group. , transmits Serbia-energy.eu

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