PE EPS profit increased to 15.3 billion dinars

02.12.2016

Successful business operation in 2016

(Belgrade, 25th November 2016) Electric Power Industry of Serbia trend of successful business operation continued in 2016 with realization of a profit of 15.3 billion dinars during the nine-month period, which exceeds the plan and the result achieved in the same period last year by 21 billion dinars and by 16.6 billion dinars respectively. Net income increase was significantly enhanced by savings and compliance with measures of the Serbian Government and reorganization program defining more rational and more successful business operation as its priority.

 

Total operating expenses were 13 percent lower than planned and by five percent lower than in the first nine months last year. EPS saved even 20 million euros by reducing the costs of electricity procurement and such costs are lower by 35 percent. Trading on electricity exchanges, EPS earned 78.3 million euros in the first 10 months of the year. Around three billion kilowatt hours were sold for 91.6 million euros, while 326 million kilowatt hours were purchased for 13.3 million euros.  Due to better hydrological conditions and higher run-of-the-river hydro power plants’ generation, as well as due to lower consumption in Serbia, the amount of electricity sold on exchanges doubled in respect of the plan.   
Fuel costs are also lower than planned, by 28 percent, i.e. by 1.5 billion dinars, due to more efficient business operation. Operating expenses for transportation, representation, utility and other services, decreased by even 44 percent.
Collection for the electricity consumption also improved and the collection rate reached 96.4 percent, which exceeds the planned 94.9 percent by 1.5 percentage points.
Good results were also achieved in the coal production – since 32 million tons of coal were produced during the period of 10 months from MB Kolubara and TE-KO Kostolac mines. This was compliant with the plan and by three percent higher than in the same period last year.
EPS power plants have been showing growing efficiency and slightly above 30 billion kWh were generated during the period of 10 months this year. This was by volume the second highest generation in the last 16 years, and for the period of 10 months in 2016 the electricity generation was by six percent, i.e. by 1.7 billion kWh, higher than planned.
Fewer downtimes were recorded in thermal power units for the period of 10 months in 2016 in comparison with the same period in 2015, confirming the significance of the investments into modernization of EPS generation capacities. 
The largest overhaul this year, with EUR 75 million investment, was the overhaul of Unit B2 in TENT B and it was successfully completed. This provided the extension of the lifetime of the unit by 30 years and increased the plant’s efficiency and reliability.
Revitalization of the first unit in Hydro Power Plant Zvornik was recently completed, and immediately after the commissioning, the modernization of the second unit will begin so that the revitalization of all four units in this HPP can be completed until the end of 2019. Cooperation of EPS and the Russian company Silovije Mašini on the revitalization of the units in HPP Djerdap 1 is progressing.                .
Electric Power Industry of Serbia will continue the reforms in the business operation and organization and it expects that it will end 2016 as one of the most profitable companies in Serbia.                          
 
PE EPS PR Sector