May 5 (SeeNews) - Bulgarian state-owned National Electricity Company (NEK) said that it turned to a preliminary net profit of 117.4 million levs ($66.2 million/60 million euro) in the first three months of 2023 from a net loss of 8.6 million levs in the same period of last year, as it was boosted by contributions into the national energy security fund.
NEK's total revenue went up to 1.12 billion levs in the first quarter from 1.04 billion levs in the same period of 2022, despite a 39% annual drop in revenue from sales to 486.8 million levs, it said in an interim financial statement earlier this week.
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Revenue from the Electricity System Security Fund surged to 631.9 million levs between January and March compared to 239.7 million levs a year earlier. At the end of 2022, the previous Bulgarian parliament voted to levy a 33% corporate tax on windfall profits of fossil fuel energy companies in 2022 and 2023. In addition, for the new 2022-2023 pricing period the Energy and Water Regulatory Commission (EWRC) increased carbon prices to 91 euro ($ ) per tonne.
NEK trimmed expenses for hired services and provisions in the review period, while dividends from subsidiaries increased to 39.3 million levs from 30.75 million levs in the first quarter of 2022.
In December, ratings agency S&P affirmed NEK's credit rating at BB- and raised its outlook to positive from stable, in anticipation of the planned power market liberalisation.
As an electricity producer and public supplier, NEK has generation assets with 2,737 MW in capacity, its website shows. The owner of 31 hydropower stations, it is also the largest renewable energy producer in the country.
(1 euro = 1.95583 levs)
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