HEP Group's profit HRK 2.045bn

HEP Group's profit HRK 2.045bn

Revised financial reports of the parent company, Hrvatska elektroprivreda d.d. and consolidated reports of HEP Group for 2016 were published today on HEP’s websites as well as on the website of Zagreb Stock Exchange.

For the third business year in a row, HEP Group achieved extremely good results. According to revised financial reports consolidated net profit in 2016 totals at HRK 2.045bn.

The year 2016 marked an increase in the generation of hydro and thermal power plants, as well as in the electricity procurement on the market. In 2016 HEP increased the sale of electricity in Croatia. However, the income lowered due to the decrease of the overall level of electricity unit prices for all customer categories (household and commercial), including the customers of public service supply and supply under market terms. The income from the sale of electricity outside Croatia increased significantly in comparison to 2015, as a result of export boost of electricity surpluses generated in HEP’s power plants as well as of higher sales to customers in the region.

HEP’s market share in the electricity supply of Croatian customers was stabilized in 2016. HEP achieved a 12.5-percent market share in the supply of commercial customers on the Slovenian market and it made a step forward onto other neighbouring markets (Bosnia and Herzegovina, Serbia). In this way HEP additionally strengthened its position of a regional market leader in electricity supply.

Operating income in 2016 amounts to HRK 14.4bn, which marks a decrease of HRK 169.1mn (1.2%) in comparison to the year before. Operating expenses in 2016 total at HRK 11.677bn, which is an increase of HRK 103.5mn (0.9%). The total of HRK 2.59bn of investments were realized, financed from own means without the need for additional long-term debt. 

Rating agency Standard & Poor’s upgraded HEP’s stand-alone credit rating from b+ onto bb, upgrading HEP’s overall corporate credit rating from BB- onto BB, as well. Thus, the overall corporate credit rating reached Croatia’s sovereign credit rating level, but according to the Agency, HEP’s credit rating cannot exceed the sovereign credit rating for now. The rating upgrade is a direct result of active corporate management of HEP’s financial position and its overall business activities. Furthermore, since the outlook upgrade on the sovereign credit rating of the Republic of Croatia in December 2016, the Agency confirmed HEP’s long-term credit rating (BB) and increased the credit rating outlook from negative to stable.

Financial reports are available here.