Electricity

Bulgaria’s NEK reports net loss in H1, to cancel some projects

Photo: NEK

Published

August 6, 2018

Country

Comments

comments icon

0

Share

Published:

August 6, 2018

Country:

Comments:

comments icon

0

Share

Power utility Natsionalna Elektricheska Kompania (NEK) reported a BGN 74 million (EUR 37.8 million) net loss for the first six months of the year, according to the interim financial report published on the website of the Ministry of Finance, the Bulgarian media reported. The company said that due to poor financial results some investments will be canceled.

In the same period last year, NEK had a BGN 954,000 (EUR 487,000) loss, Publicis.bg reported.

Because of the poor financial condition NEK does not plan to continue financing several investments, including the Upper Arda cascade, the Mesta cascade, and several smaller projects, in the next five years, Bulgarian news agency BTA reported.

In the first half of this year, NEK reported an operating loss of BGN 55 million (EUR 28.1 million) and positive cash flow from operating activities of BGN 74.4 million (EUR 38.8 million). The uncovered loss from previous periods amounted to BGN 1.19 billion (EUR 608.4 million).

NEK’s liabilities to the owner, the Bulgarian Energy Holding (BEH), reached BGN 540.3 million (EUR 276 million), including overdue liabilities of almost BGN 361 million (EUR 184.5 million).

The activity of the company is highly dependent on the support of BEH, as well as other sources of financing, according to the report.

The management is confident that with the financial support of BEH, NEK will be able to continue its activities and repay its obligations without selling assets and without making any major revisions to its operations.

The report also brings details on the Belene nuclear power plant (NPP) project. Until June 30, 2018 the cost of the project including assets under construction reached BGN 2.18 billion (EUR 1.09 billion).

The management sees considerable uncertainty about the future realization of the project and the recoverable value of the assets related to the Belene NPP, the website noted.

NEK operates with 30 HPPs and pumped-storage plants, with a total installed capacity of 2,713 MW in the generating mode, and 937 MW in the pumping mode.

The 14 largest HPPs have a total installed capacity of 2,480 MW.

Tags: , ,
Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

IRENA La Camera renewables must grow higher speed scale

IRENA’s La Camera: Renewables must grow at higher speed, scale

12 July 2024 - IRENA's Director-General Francesco La Camera warned of ongoing patterns of concentration in geography in renewables deployment as well as against complacency

serbia nuclear energy memorandum government institutes faculties vucevic djedovic

Serbian government forges nuclear energy alliance with 20 scientific institutions, firms

10 July 2024 - The memorandum is aimed at gathering experts from Serbia and abroad to examine the possibility of the use of nuclear energy

Albania declares eight winners at 300 MW solar power auction

Albania declares eight winners at 300 MW solar power auction

10 July 2024 - The lowest bid at Albania's solar power auction came in at EUR 39.7 per MWh, against a starting level of EUR 59.97 per MWh

Heat pumps and electric cars expected to bring small rise in power demand for Greece

Heat pumps, electric cars expected to contribute little to power demand growth in Greece

10 July 2024 - In Greece, heat pumps and electric cars are not expected to raise electricity demand significantly, contrary to earlier estimates