Serbia: EPS profit rises to EUR 123.3 million

, News Serbia Energy

“Electric Power Industry of Serbia” continued the trend of successful business operation in 2016 and achieved net profit of EUR 123.3 million for nine months. This is EUR 169.3 million more than planned and for EUR 133.7 million better result than in the same period last year. Increase in net profit was significantly contributed by savings and following measures set by the Serbian Government and reorganization program whose priorities are rational and successful business operation.

Total operating expenses were 13 percent lower than planned, and five percent lower than in the first nine months last year. EPS has saved EUR 20 million by reducing costs of purchasing electricity and these costs decreased by 35 percent. EPS has earned EUR 78.3 million in the first 10 months this year by trading on power exchanges. EPS sold three billion kilowatt-hours at the price of EUR 91.6 million, and purchased EUR 326 million kilowatt-hours at the price of EUR 13.3 million. Due to better hydrological conditions and higher production of run-of-river hydropower plants, as well as less electricity consumption in Serbia, twice as much electricity has been sold on power exchanges than planned.

Owing to more efficient operation, fuel costs are 28 percent lower compared to the plan, or by EUR 12.1 million. Operating expenses related to transportation, entertainment, utilities and other services decreased by even 44 percent.

Payment of consumed electricity was improved, and the collection rate reached 96.4 percent, which is by 1.5 percentage points more than planned 94.9 percent.

Results are also good in the coal production, as for 10 months in the mines of MB “Kolubara” and “TPP – OCM Kostolac” mines produced 32 million tons of coal, which is three percent more than in the same period last year.

EPS power plants indicate increasing efficiency and more than 30 billion kilowatt-hours have been produced in 10 months of this year. This is the second largest maximum production in last 16 years, and for 10 months in 2016 six percent more electricity has been produced than planned, or 1.7 billion kilowatt-hours more.

In the first ten months of 2016 compared to the same period in 2015, there was a small number of outages in thermal units, which confirms the importance of investments in the modernization of EPS production capacities.

The biggest overhaul of unit B2 in TENT B was successfully completed, worth EUR 75 million and thus the life time of the unit is extended for another 30 years, and the efficiency and reliability of the unit have also been increased.

These days the revitalization of the first unit in hydro power plant “Zvornik” has been completed, and will be followed by the modernization of the second unit, in order to finalize the revitalization of all four units in this HPP by the end of 2019. In addition, activities with the Russian company “Silovije masini” with whom EPS is revitalizing hydro aggregate in “Djerdap 1” are making progress.

“Electric Power Industry of Serbia” will continue its reforms in the business operation and the organization and it expects to end 2016 as one of the most profitable companies in Serbia.