Amidst concerns surrounding energy security and the transition away from Russian nuclear fuel, the executive director of Bulgaria's Kozloduy Nuclear Power Plant (NPP), Valentin Nikolov, has reassured the public that there is no risk of operational disrupt
Financial Performance of 152 Bulgarian State-Owned Companies Deteriorated by BGN 739 M in 2014
The financial performance of 152 companies with a state-owned stake of over 50% deteriorated substantially in 2014 as compared to 2013, according to Bulgarian economic policy think-tank Institute for Market Economics (IME).
The IME published Saturday an assessment of the financial position of state-owned companies which had released their 2014 financial reports in May, hospitals excluded.
According to the analysis, the 152 state-owned companies reported after-tax profit of BGN 496 M in 2013, while in 2014 they posted a total loss of over BGN 243 M.
This means that the financial performance of these state-owned companies deteriorated by BGN 739 M in a year.
The main contributor to the decline is the National Electric Company (NEK), which saw its loss increase over 4-fold in just one year.
Apart from the deterioration in financial performance of these 152 companies, 2014 also brought an increase in the number of loss making companies.
In 2013, 105 of these 152 companies reported a profit, 5 neither made profits nor suffered losses, and 42 registered losses, while in 2013 the number of companies that made a profit stood at 93, the ones that neither made profits nor suffered losses were 2, and the loss-making firms increased to 54.
The largest net profit in 2013 and in 2014 was reported by the Bulgarian Energy Holding (BEH).
Despite that, the profit of BEH dropped by around 33% in a year.
The top 10 of profit-making state-owned companies includes mostly firms in the spheres of energy and infrastructure.
NEK was the company that registered the largest loss in 2014, at nearly BGN 600 M.
The loss of the state-owned power utility increased over 4-fold compared to 2013.
Three of the 10 companies that registered the biggest losses in 2014 reported substantial profit rates in 2013, including the Maritsa Iztok 2 thermal power plant, the cargo unit of the Bulgarian State Railways (BDZ) (BDZ Freight Services), and the State Enterprise ‘Port Infrastructure’.
Three companies had long-term liabilities of over BGN 1 B by end-2014, including the National Railway Infrastructure Company (NRIC), with long-term liabilities of nearly BGN 2 B, the National Electric Company (NEK) and the Bulgarian Energy Holding (BEH).
Long-term liabilities of over BGN 100 M were reported by a number of state-owned energy companies, including the Kozloduy nuclear power plant (Kozloduy NPP), the Maritsa Iztok 2 thermal power plant, and gas transmission operator Bulgartransgaz.
The Electricity System Operator (ESO) saw a particularly large increase in long-term liabilities from a rate of BGN 11 M to a rate of BGN 252 M.
The 152 state-owned companies had long-term liabilities totaling BGN 6.7 B in 2014, up from a rate of BGN 5.4 B in 2013.
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