HSE GROUP IN 2016: OPERATED WITH A PROFIT WITH LOWER INDEBTEDNESS AND COSTS

Holding Slovenske elektrarne (HSE), the largest producer and trader on the Slovenian wholesale electricity market and the largest producer of electricity from renewable sources in Slovenia, today published on its website the annual report for the HSE group and the core company HSE for 2016. The report assesses the year as successful, as HSE operated with a profit and reduced indebtedness, which is a big turnaround compared to 2015. Production of electricity in power plants operated by the HSE group was 15% higher compared to the previous year and amounted to a total of 7.8 TWh. The group generated EUR 1.2 billion in revenues and EUR 21.7 million in net profit in 2016. What is more, measures in the field of rationalisation and optimisation of operations started to produce results, as operating costs decreased in a majority of key segments.

Low prices of electricity on the European markets also marked 2016 just like in several previous years. Despite the unfavourable circumstances, the HSE group operated successfully by carrying out successful sales and marketing activities and consistently implementing measures of business restructuring and rationalisation of operations. After operating for two consecutive years with a loss, it posted a net profit of EUR 21.7 million and generated EBTIDA of EUR 156.5 million, which is 29% more than in the year before. In comparison with 2015, services costs were down by 14%, and labour costs by 4%. Total financial liabilities of the HSE group on 31 December 2016 amounted to EUR 899.6 million and were down by 11 percent compared to 2015. By refinancing short-term loans, HSE meanwhile secured long-term financing sources in the amount of EUR 180 million and an additional EUR 50 million long-term framework loan. The implementation of financial restructuring significantly improved the financial and liquidity situation of the HSE group in 2016.

Despite lower prices, sales of electricity in 2016 remained at a level comparable with 2015. “This is primarily a consequence of successful sales of our own production and a better result in sales of systemic solutions. In the sale structure, the share of sales on foreign markets, where the HSE group has been an established business partner ever since its establishment, is increasing. We are present in more than twenty European countries, both as members of power bourses and through subsidiaries in direct ownership of HSE and representation offices abroad,” said Stojan Nikolić, chief financial officer at HSE. Volume sales of the HSE group amounted to 28.3 TWh, which is 4% more than in the previous year, while production in 2016 was 15% higher compared to 2015.

The focus of strategic guidelines in the future will be on restructuring and deleveraging of the HSE group in order to increase added value. “An emphasis will be put on sustainable production of electricity and reconstruction and efficient construction of environmentally acceptable facilities. We will intensively use the potential of trade in electricity and develop and use the know-how of more than three thousand employees in the HSE group,” said Matjaž Marovt, director general of HSE, adding: “We will continue to make effort towards the strengthening of the operations of the HSE group through consolidation of ownership and corporate management, while at the same time maintaining stable, long-term business relations and establishing new strategic partnerships in the region as well as in Slovenia.”