After the crisis, energy companies recorded 225 million euros in profit in 2023

2024-08-02 07:27:00, Ekonomi CNA

After the crisis, energy companies recorded 225 million euros in profit in 2023

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After 2022, when the energy crisis reached its peak and plunged energy companies into a loss of around 240 million euros, the year we left behind seems to have marked a completely different panorama.

The better water situation where the net energy production reached the level of 8.80 TWh eased the entire chain of public companies as exports dominated over imports.

The official data for the three public energy companies from the Albanian Electroenergetic Corporation (KESH), to OSHEE Group and the Transmission System Operator (OST) show a profit of 22.5 billion ALL or 225 million euros.

"During 2023, the energy sector has marked a significant improvement in financial performance, as a result of: (i) the improvement of the meteorological situation in the country and, as a result, (ii) the increase in flows in the Drin cascade, which has increased the level of local energy production by KESH sh.a throughout 2023. Specifically, the level of the Fierza basin until December 2023 was at the quota of 284.5 meters, with a higher level than the average quota of the last 30 years for the same period, of 277.5 meters" is stated in the actual budget.

The main weight in this profit seems to be held by the Albanian Power Corporation, which thanks to the good water situation has managed to secure income in the amount of 41 billion lek or about 410 million euros, but also to significantly reduce expenses which in the year of crisis 2022 dominated by imports at extreme prices. These expenses were around 630 million euros in 2022, while in 2023 they were 55 percent lower. The company's profit in 2023 is estimated at around 135 million euros.

The distribution company OSHEE Group, which has three daughter companies under it, recorded a level of 74.7 billion alleks or 747 million euros, while the profit for 2023 was calculated at 4.64 billion alleks or about 46 million euros.

The third company, that of broadcasting OST, last year had 12.3 billion ALL in revenue, almost at the same level as in 2022. Expenses, on the other hand, decreased by 32 percent in 2023 compared to 2022, marking a level of ALL 7.9 billion. The company's profit is calculated at 4.37 billion lek or about 43 million euros, almost 10 times more than a year ago when costs also increased for OST due to costly imports that go to cover transmission losses.

In the actual 2023 budget, it is underlined that the fiscal risk of the sector has decreased. "In terms of fiscal risk, the impact of the sector as financial costs or missing revenues in public finances for 2023 is estimated at about 5.3 billion LEK from about 33 billion LEK in 2022, indicating an improvement in the state of liabilities.

This situation was influenced by the favorable atmospheric conditions that significantly increased the level of local energy production by KESH sh.a. Investment projects with foreign financing for the energy sector for 2023 were approved at the level of LEK 2 billion according to the initial budget approved by Law no. 84/2022 "On the 2023 budget", and were not revised during the budget year. in the report./Monitor