SOFIA (Bulgaria), February 27 (SeeNews) – Czech energy group CEZ reported on Thursday negative earnings before interest, taxes, depreciation and amortisation (EBITDA) from power production and trade in Bulgaria of 300 million Czech crowns ($15 million/11 million euro) last year, compared to positive EBITDA of 400 million Czech crowns a year earlier.
EBITDA from power distribution and sale dropped 36% to 1.0 billion Czech crowns in Bulgaria last year due to a decision by the country's energy regulator to cut electricity prices for end-clients and lower volume of production, CEZ said in its latest annual financial report.
"We are trying to compensate the impacts especially by increased efficiency, especially in expenses,“ CEZ said.
The output of CEZ’s coal-powered plant in Varna decreased by an annual 63% in 2013 due to lower demand for deliveries to the regulated market and lower quota production. However, in 2014 the plant’s production is expected to grow 38% as the demand for deliveries to the regulated market, especially higher quota production, is expected to increase, CEZ said.
The company's investments in electricity distribution in Bulgaria amounted to 1.4 billion Czech crowns last year.
In 2013 the company acquired 100% in local company Bara Group, which owns a construction project for a biomass gasification CHP unit with a maximum installed capacity of 4.5 megawatts.
CEZ began operations in Bulgaria in November 2004. Its local power distribution and sales business covers the city of Sofia, the Sofia region and parts of western and northern Bulgaria.
(1 euro = 27.3344 Czech crowns)
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