HomeNewsRestructuring leads to six month loss for Slovak utility

Restructuring leads to six month loss for Slovak utility

3 September 2002 – Slovakian power generator Slovenske Elektrarne (SE) said on Monday it ended the first half of 2002 with a net loss of 793m crowns ($18m), mainly due to restructuring effects.

The restructuring has included a transformation to a joint stock company ahead of the partial privatization of the country’s dominant power generator.

The results were unconsolidated, calculated according to Slovak accounting standards and were not comparable with last year’s results prior to the reorganisation, said a spokesperson.

Ten firms expressed interest in buying between 46 and 49 per cent and management control of SE last month. The sale forms part of a bigger plan to sell off controlling stakes in major state-run firms as the country’s decade-long transformation from a communist-style economy to a market-based system progresses.

SE posted a 1.51bn crown operating profit for the first six months of the year, while having a 2.15m crown loss from financial operations, the company statement said.

“The results were affected mainly by the transformation of SE, which ended in the formation of a new company in January 2002,” it said.

The transformation of SE mainly included the separation of regional energy distributors from the power generating arm of SE and their subsequent privatisation in stand-alone deals.

In the meantime, SE itself was turned into a joint-stock company from the original state enterprise.

SE has an 85 per cent share of the domestic electricity production market. It produced 27 215 GW in 2001, of which 70 per cent was sold to local distribution companies, 19 per cent was exported and the rest went directly to local clients.

The company expects to end this year flat, unless the business plans change significantly, the statement added.

The SE sale will be completed by the cabinet that emerges from the September 20-21 general elections. The current government plans to shortlist potential bidders and ask them to submit non-binding bids, in September.