August 30 (SeeNews) - Electricity and insurance group Eurohold Bulgaria [BUL:EUBG] said on Tuesday that it swung to a consolidated net profit of 72.9 million levs ($37.25 million/37.3 million euro) in the first half of 2022, or its strongest interim result to date, from a net loss of 3.44 million levs a year earlier.
The strong performance was primarily due to the group consolidating the results of Electrohold, its recently created subsidiary which comprises the electricity distribution and trading businesses acquired from Czech energy group CEZ, Eurohold said in a press release.
Total revenue grew nearly fourfold year-on-year in the first half of 2022, to 3.17 billion levs. The holding’s earnings before interest, taxes, depreciation and amortisation (EBITDA) soared more than 14 times to over 170 million levs.
Electrohold accounted for more than half of the total revenue and over 70% of EBITDA before calculation of the parent company’s results and intra-group eliminations, Eurohold noted. The power businesses generated EBITDA of 134.6 million levs on revenue of 1.64 billion levs.
Eurohold's insurance business, under subsidiary Euroins Insurance Group (EIG), also significantly contributed to the result, as gross revenue from operations in the sector nearly doubled to 1.52 billion levs, with net profit from insurance activities reaching some 50 million levs. EIG's gross written premium volume rose by an annual 73% to 885.6 million levs in the first six months of 2022.
"Our performance has exceeded the initial expectations. Our successful figures over the past year and a half have proved that we have been following a proper direction and development strategy," Eurohold chairman Kiril Boshov said. He added that the group is confident of being able to achieve good operating performance even if the economic environment deteriorates in the coming months.
Eurohold completed the disposal of its automotive and leasing business in the period under review. In early August, it agreed to divest the remaining part of its car leasing businesses under Avto Union as well as Eurolease Group to Asterion Bulgaria, after shedding most of its assets in the sector through several deals last year, including importers and dealers of Mazda, Nissan, Renault and Dacia.
The holding has retained investment and brokerage services provider Euro-Finance.
Last week, Eurohold's indirect subsidiary Eastern European Electric Company (EEEC) launched a squeeze-out for the residual stakes in Electrohold Sales [BUL:CEZE] and Electrodistribution Grid West [BUL:CEZD] with the aim of delisting them from the Sofia bourse.
In June, Fitch Ratings maintained Eurohold's Long-Term Issuer Default Rating (IDR) of 'B' and removed it from Rating Watch Negative (RWN) after affirming a stable outlook.
(1 euro = 1.95583 levs)