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Bulgarian Energy Holding Posts EUR 400 M Decrease in Revenues
Despite financial difficulties at some of its subsidiaries, notably the National Electricity Company (NEC) with a gaping deficit of nearly BGN 3 billion, the holding will not be struggling to pay its contractors and energy producers
State-owned Bulgarian Energy Holding (BEH) which encompasses several of the country’s major power producers, electricity and gas companies, has seen over a BGN 800 million (about EUR 400 m) decrease in its annual revenues in 2013, the financial report of the holding showed. Last year BEH had revenues of BGN 5.7 billion, compared to BGN 6.5 billion in 2012. Despite financial difficulties at some of its subsidiaries, notably the National Electricity Company (NEC) with a gaping deficit of nearly BGN 3 billion, the holding will not be struggling to pay its contractors and energy producers, the annual statement said.
Drop in electricity sales
NEC reported power sales revenues decreased from BGN 3.9 bn in 2012 to BGN 3.7 bn reflecting on lower exported electricity quantities and a persisting downward trend in consumption versus existing overcapacity.
Lower lignite output at the state owned Maritsa East Mines caused BEH’s revenues from coal sales to shrink with 7,5% compared to 2012.
Meanwhile BEH’s Bulgargaz imported 1% less Russian gas (2,263 million cub. m), while the gas transport subsidiary Bulgargaz saw an increase in transport mainly due to the larger quantities (up 1.27% to 3.033 million cub. m) stored at the country’s sole storage facility at Chiren.
Less than 255 of the holding’s money in KTB
Under a quarter of BEH’s financial means were left at the troubled Corporate Commercial Bank (KTB). This however is not expected to cause struggles at the holding with payments to contractors and power producers.
“There is no direct risk of activities being blocked at the BEH Group”, concludes the analysis of the consolidated statement.
The shelving of Nabucco
BEH’s investment in the project joint venture for now scrapped gas pipeline Nabucco, which was supposed to bring Caspian gas to Europe, is completely written-down. BGN 52.04 million were invested by the holding in the joint venture created with partners OMV (Austria), Botas (Turkey), FGSZ (Hungary) and Transgaz (Romania). “Nabucco Gas Pipeline International” is in liquidation since April 2014.
Presumed RES debts towards BEH unproved
According to the analysis of the independent auditor Grant Thornton no sufficient evidence for the recoverability of assets of the cancelled Belene NPP project were presented by BEH. The same goes for more than BGN274 m that the holding claims privately owned electricity distribution companies managed by CEZ, EVN and Energo-Pro owned. Reciprocal debt of BEH’s amounting to BGN 60 m was also not supported by pertinent evidence.
Earlier in 2014 BEH and the electricity distribution companies were accusing each other over unpaind debts for renewable energy without a proper settlement of the conflict being announced.
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