Losses of Ukrenergo in the first half of the year amounted to UAH 18 billion

NPC Ukrenergo reported that in the first half of the year, the company's negative financial result amounted to UAH 18.03 billion, stressing that the key reason is the costs that the company has to cover due to PSO in the electricity market.

“In particular, Ukrenergo is obliged to compensate the deficit of Guaranteed Buyer, which pays FIT to renewable energy producers. The actual tariff income for the payment of PSO in January-June this year amounted to UAH 4.6 billion. However, the actual costs for the implementation of PSO project during this period amounted to UAH 21.43 billion,” the message says.

About 93% (UAH 16.8 billion) in the structure of the company's loss for the first half of 2020 are PSO.

Another UAH 1.56 billion of losses for the reporting period is associated with the peculiarity of the balancing market. This amount will be reimbursed as a result of the settlement mechanism provided by the law.

Also, the financial indicator of the first half of 2020 was influenced by the effect of the market revaluation of the Company's fixed assets, as a result of which the value of assets increased significantly. In this regard, the amount of depreciation charges has changed: if UAH 362 million was included in Ukrenergo's tariff, then the actual figure was UAH 1.6 billion.

“It should also be noted that in the reporting period of 2020, the Company's net income increased by 7 times compared to the same period last year – up to UAH 25.3 billion due to the components of the electricity market, namely: 51% (UAH 12.8 billion) in the structure of income is income from operations in the balancing market, another 18% (UAH 6.6 billion) is income from PSO, which were not in the transmission tariff for the first half of 2019”.

The company also noted that comparing the financial result of the Company with the same period of 2019, which ended with a profit of UAH 1.77 billion, it is worth noting that in the absence of the above factors, income from the main activities of Ukrenergo in January-June of this year would have amounted to UAH 1,9 billion of profit.

In particular, the income from core activities for the first half of 2020 amounted to UAH 7.84 billion with costs of UAH 5.91 billion.

Earlier, Ukrenergo reported that electricity consumption in July approached the indicators of 2019.