2024-07-27 02:25:19
“Mini Maritsa-East” is expected to end the year with a loss of over BGN 200 million compared to BGN 137.4 million a year earlier.
This became clear during the hearing in the parliament of acting energy minister Vladimir Malinov.
According to Minister Malinov, the factors for the deteriorating financial condition of the company stem from the stopped deliveries of coal to TPP “Contour Global”, which, after February, supplies raw material only three meters away from the Mariska Basin.
Because of this situation, the mine’s current board of directors has updated its plans for coal production this year from the original target of 17.4 million tons to 11.6 million. In addition, “Mini Maritsa-East” has stopped new openings.
The expenses are optimized, and the revenues are quite reduced, it became clear from his words. Malinov provided detailed data:
For the period from January 1 to May 31, 2024, “Mini Maritsa-East” reports loss from its activities in the amount of BGN 99.6 million.
The year 2023 also ended with a financial loss, the amount of which is 137.4 million BGN. Thus, at the end of May, the total reported loss in the company’s balance sheet is BGN 237 million
Based on the past 5 months and the financial results reported for them, as well as the expectations of the companies under the investment program and the amount of coal mining and discovery, it is expected that the realized loss for 2024 alone will be in the amount of over BGN 200 million.
The lack of income leads to a state in which the mines already cannot fulfill their obligations under contracts with suppliers. Accumulated liabilities reach BGN 57.6 million, and according to already concluded contracts they exceed BGN 44 million, of which BGN 3.1 million is an unpaid concession fee to the Ministry of Energy. The company’s receivables are insufficient, according to the minister’s report.
The minister also pointed out that at the moment coal is supplied to only three plants – TPP Maritsa-East 2, TPP EY and ES Maritsa-East 1 and Brickell EAD. And as of July 15, coal worth 114 million BGN was sold, while last year for the same period 217 million BGN were sold. There was also a clear trend of a significant drop in production and a 45% drop in revenues from the sale of coal, the minister also pointed out.
The canceled public procurements are for BGN 79 million, and according to the company’s accounts as of mid-July, the available cash value is BGN 7 million.
In response to an MP’s question, Malinov explained that between It will also take 6 to 8 months for the EC’s response in connection with the decision of the Parliament to grant 250 million BGN annually to the company. The question was sent back in April, when the parliament made this decision.
Malinov also reported that after his assumption of office, the investments to “Mini Maritsa-East” for equipment related to the mining and opening of coal were stopped.
He pointed out that an option for a project regarding the construction of a solar park on the company’s territory is being considered, which is expected to cover its own electricity consumption and, if it is possible to secure free financing, reach up to 100 megawatts.
6,556 employees are employed in the mines. To date there are no outstanding debts to staff and to the budget, except for the concession fee to the ministry. For this purpose, a short-term measure was taken to secure BGN 150 million from BEH and commercial banks for “Mini Maritsa-East”. Of these, BGN 100 million is a credit line from BEH and BGN 50 million is a commercial loan, on which the energy holding is a co-debtor. There are instructions that any expenditure from the mines under this loan be agreed with BEH.
In order to optimize costs no new employees are appointed, and the persons who acquire the right to a pension, the employer takes advantage of his right to terminate the employment relationship. The two-shift mode of operation has been changed, as at times of peak electricity prices, the mines stop working. Repair actions are now carried out by company employees, not by external companies. Fuel costs have also been reduced, it became clear from the minister’s words.