Bulgaria's
state-owned National Electricity Company (NEK) said on Thursday it turned to а
pre-tax profit of 25 million levs ($14.4 million/12.8 million euro) in the first
quarter of the year from a pre-tax loss of 93.8 million levs a year
earlier.
The positive results are due to a 67% increase to 1.535 billion
kWh in the output of big hydropower plants, in the three-month period and that
fact that the energy system is operating at higher capacity, the company said in
a financial report.
In the same report NEK said its parent, the
Bulgarian Energy Holding, posted an after-tax profit of7.895 million levs in
the three months trough March, up by 2.8% on the year.
In its annual
financial report released earlier this week, NEK said its net loss more than
doubled to 586.7 million levs in 2014 from 217.7 million levs a year before. NEK
more than halved its own capital to 1.6 billion levs in 2014 from 4 billion a
year earlier.
Its liabilities grew to more than 1.1 billion levsfrom 771
million levs in 2013. However, NEK repaid its parent company BEH over 100
million levs in debts last year.
Electricity sales generated 2 billion
levs in revenues for NEK in 2014, down from 2.6 billion levs a year
earlier.
In February Bulgaria's parliament approved amendments to the
country's energy legislation aiming to stabilize financially the energy sector.
The amendments envisaged the exclusion of TPPs, whose operations are
inefficient, from the country's energy mix, and curbing power production from
biomass, among others.
In April the Bulgarian units of US companies AES
and ContourGlobal agreed with NEK on a decrease by 14% and 17%, respectively, in
the capacity price for electricity produced by their coal-fired plants in the
southeast of the country. For its part, NEK agreed to pay all arrears to the two
companies amounting to a total of 700 million levs.
The agreement with NEK for
an amendment to the Power Purchase Agreements (PPAs) that the plants have with
the utility will result in cumulative savings for NEK of about 1.0 billion levs
andannual savings of about 100 million levs over the remaining term of the
PPAs, the Bulgarian government said at the time.