June 15, 2024
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HomeUncategorizedSerbia: EPS swings to a net profit of nearly one billion euros...

Serbia: EPS swings to a net profit of nearly one billion euros in 2023

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After two consecutive years of losses, Elektroprivreda Srbije (EPS)marked a significant turnaround in 2023, reporting a profit of one billion euros. The achievement was highlighted in the report on the implementation of EPS’s three-year business plan for the previous year, as reported by Danas.

The Supervisory Board and the Assembly of Shareholders, represented by Minister of Energy Dubravka Đedović Handanović, adopted the report on EPS’s three-year business plan implementation for the past year.

In 2023, EPS recorded a record net profit of 114.6 billion dinars (approximately 980 million euros), as noted by Danas. This notable profit comes after incurring losses in the previous two years, with a loss of 72.7 billion dinars (619 million euros) in 2022 and 14.9 billion dinars (127 million euros) in 2021.

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According to the report, EPS’s success in 2023 can be attributed to several factors. Exceptional hydrological conditions and lower costs of purchasing external coal for thermal power plants were significant contributors. Additionally, higher revenues were driven by increased electricity prices for both the economy and the population, as well as profits from electricity exports.

“Stable production and favorable hydrological conditions enabled EPS to sell surplus electricity on the stock exchange and free market,” the report states. Furthermore, income was realized through compensation for implementing measures limiting the selling price of electricity, offsetting losses in the transmission and distribution system.

EPS’s business revenues in 2023 amounted to 498.5 billion dinars, representing a 38.5 percent increase compared to 2022. Meanwhile, expenditures were reduced by 15 percent, with significant savings in material and energy costs.

The company’s profit from operations totalled 139.5 billion dinars, with additional profit from financing of 4.4 billion dinars due to positive exchange rate differences. The profit before tax amounted to 129.7 billion dinars, with a tax on profit of 15 billion dinars.

The distribution of the profit from last year, whether as dividends or to cover earlier losses totalling 282 billion dinars, remains to be determined by the state.

Despite the positive business performance, EPS’s long-term liabilities increased by 25 billion dinars in 2023, reaching a total of 176 billion dinars. While domestic long-term loans decreased, loans from foreign creditors saw an increase.

EPS managed to achieve a positive cash flow in 2023, ending the year with 37.8 billion dinars, with investments totalling 46.4 billion dinars. However, bookkeeping investments amounted to only 45 percent of the planned amount, with EPS’s funds contributing 33.9 billion dinars to investments.

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