HEP books rise in profit in six months through June

Unaudited financial reports for the first half of the year showed Croatian government-owned power utility HEP Group’s unconsolidated net profit climbed to HRK 1.22 billion (EUR 163 million) from EUR 126 million in the equivalent period of 2015, due to higher financial income and lower operating expenses.

Investments jumped 72.5% to EUR 23.3 million. They included the construction of energy facilities and cogeneration facilities fuelled by biomass, as well as procurement and construction of information and communications technology (ICT) infrastructure, according to the statement on the company’s website.

Revenues from electricity sales, among other factors, increased by EUR 36.9 million with improved results at the international market. Operating expenses came down 7.5% from the first six months of last year, to EUR 447.3 million, due to lower fees for electricity generation, with a decrease in production.

Net profit of EUR 82.5 million was recorded from financial operations. Financial income reached EUR 111.4 million, mostly from the share in profits of associated companies. Financial expenses, at EUR 28.9 million, consisted of interest on loans and issued bonds and foreign exchange losses. The company said its liquidity was satisfactory and that all liabilities towards suppliers were paid in due time. All investments were financed from regular operational cash inflow and a long-term loan for financing cogeneration biomass facilities.

Last month HEP said its Operator of Distribution System (HEP ODS) set more than EUR 66.8 million in coastal areas aimed at contributing to Croatian tourism.