Electric Power Industry of Serbia (EPS) is planning an operating profit of 5.4 billion dinars in 2013, but the total financial result at the end of the year will be a loss of 21.4 billion dinars, due to repayment of short-term loans amounting to 27.7 billion dinars.That is, according to the company’s magazine, envisioned by an annual business program of EPS for the next year, and short-term loan repayments of the company have a large share of the costs. Executive Director of EPS for renewable sources Vladimir Djordjevic said that as of January 1st2013 this public company would face major challenges as it opens 10 percent of the electricity market to 110 kilovolts (kV).
“It is planned that in 2013 the revenues from electricity which are made in accordance with the power balance of EPSare 176 billion dinars, and total operating income 197.4 billion dinars”, saidthe Director for Economic and Financial Affairs of EPS BranislavVukosavljevic at a session of the Board of Directors of EPS.
“Operating expenses of EPS in 2013 should amount to 192 billion dinars, so the company’s operating profit in the next year will be 5.4 billion dinars, which is a significant improvement over 2012,” said Director Vukosavljevic during the presentation of the annual operating program of EPS in 2013.
However, the total financial result will be a loss of 21.4 billion dinars, as a short-term loans repayment of 27.7 billion dinarshas a great share in the costs has, says Vukosavljević, adding that more attention must paid to the negative balance of cash flows in order to ensure the smooth running of business.
Vukosavljević reminded that the reduction of 15 percent for monthly consumption of up to 500 kilowatt-hours (kWh) and five per cent discount for the regular payment of billswere planned up to March 31st 2013. The cost part of the plan are the supplies of electricity, maintenance, depreciation, and salaries for employees which are scheduled based on the earnings for December 2012, the draft of fiscal strategy and wage policies for Public Enterprises (PE), it was pointed out at the meeting. It is also planned to increase the salaries of employees in EPS by two percent fromApril 1st and 0.5 percent from October 1st2013.
Vukosavljevic said that one of the biggest risks for the plan execution was the inflation and the electricity billscollection rate. If inflation was one percent higher than the projected 5.5 percent, results in the EPS costs would be worse than 900 million dinars a year, said Director Vukosavljevic.
If the exchange rate grows one percent, the income will be reduced by 340 million dinars, whereas the decline in billing for only one percent causes a decrease in incomes of 1.7 billion a year, saysVukosavljevic.
Executive Director of EPS for renewable sources Vladimir Djordjevic said that as of January 1st2013 this public company would face major challenges as it opens 10 percent of the electricity market to 110 kilovolts (kV).
This is a particular challenge for EPS to have a go on the open market, and the company is to determine the prices forthose customers, notes Djordjevic.
Source Serbia Energy Magazine