Former director of BEH and "Bulgargaz" takes over the new nuclear facilities The state company "NPP "Kozloduy" - New capacities", which is under the umbrella of the nuclear power plant, has a new management. The management board has been completely replaced and the director Valentin Iliev and members Georgi Kirkov, who was the head of Kozloduy NPP and is now on its board, and Ivaylo Ivanov have been released. The new executive director of the company, which will carry out the project to expand the plant with up to two reactors, is Petyo Ivanov. In the past, he held management positions in a number of energy companies, including heading "Bulgarian Energy Holding" (BEH) and "Bulgargaz". While combining the two posts in 2019, the anti-corruption commission found him in a conflict of interest because, as the head of the holding, Iliev had voted for himself in the appointment at Bulgargaz and had determined his remuneration. Among the other new additions to the board of Kozloduy NPP - New Powers is Alex Nestor, former executive director of the American Chamber of Commerce in Bulgaria. Until 2014, he was the executive director of the Canadian "Dundee Precious Metals" in Bulgaria, and now he is the chairman of the Canadian Chamber of Commerce in Bulgaria. Another member of the board of directors is Svilen Spasov, former consultant of the American "Westinghouse" in Bulgaria. It is this company that is currently conducting a study on the construction of one or two new reactors at a new site at the Kozloduy NPP. Spasov was chairman of the board of the Varna Shipyard in the period 1997 and 1999 and as such was cleared as a secret collaborator of State Security. The fourth member of the board is Yanko Jinkov - a businessman whose business is in the import of mineral water and wine and in real estate.
Source: Dnevnik (17.01.2024)

Bulgarian Energy Holding EAD-Sofia (04HA) Semi-annual report as of 31 December 2023 on compliance with the terms and conditions of the bond issue, ISIN XS1839682116
Source: BSE (31.01.2024)

Bulgarian Energy Holding EAD-Sofia (04HA) Semi-annual report as of 31 December 2023 on compliance with the terms and conditions of the bond issue, ISIN XS1839682116
Source: BSE (26.02.2024)

Company within months ready with the first state battery for electricity The first pilot electricity storage battery could be built this year. It is a project of the National Energy Operator (NEO) and the National Electricity Company (NEK). From NEK is the site, which will be at one of the hydroelectric plants. The data for joining the NEK system are awaited in order to announce a tender for the design, supply, installation and commissioning of the first RES energy storage facility. The battery will have a power of 1 megawatt and an electricity storage capacity of 2 megawatt hours. This micro battery can be built in 3 to 6 months. This is the first step of the National Energy Operator, which was established by BEH with a capital of BGN 30 million a year ago. The main idea was that this state-owned company would take over the construction of the large batteries that were to be financed under the recovery and sustainability plan. There are two projects for energy storage facilities under the plan. One was originally for the construction of a national infrastructure for the storage of electrical energy from RES (RESTORE) with a total storage capacity of 6,000 megawatt hours. The idea was for them to be next to the ESO substations and to store electricity as much as half of the country's consumption during the day. Funding under the plan was BGN 1.6 billion. Later, after a reduction in European funding under the Recovery and Resilience Mechanism, the amount was reduced to BGN 780 million, and the capacity of the batteries reduced by half - to store 3,000 megawatt hours. With a decision of the parliament, the grant funding instead of 100% for a project was reduced to 50%, and the remaining 50% is provided by the company that applied. A year later, the BGN 30 million provided by BEH are in the company's accounts. The director of NEO Alexander Mihailov says that the company works in two spheres. One is the storage of electricity, and the second is the production of electricity from low-emission sources. A grant agreement was signed with the European Investment Bank (EIB) for the feasibility studies. It is usually between 1 and 1.5 percent of the battery value. The EIB will select the three most profitable to finance or co-finance. If all eight projects prove viable, the National Energy Operator will apply for batteries with all of them, and half of the financing will also be sought from commercial banks. The other model for cooperation with municipalities is for the company to buy night energy at stock market prices, and to have a conditional contract with the municipality that during the day it will supply energy to its companies at the market price minus 10%, for example. This NEO model is also trying to be implemented with state-owned enterprises. We are working on a project with VMZ-Sopot, for mutually beneficial cooperation.
Source: 24 chasa (05.03.2024)

The state buys the liabilities of Toplofikatsia Sofia for BGN 1.6 billion A draft decree of the Council of Ministers proposes approval of changes in the budget of the Ministry of Energy for 2024, the ministry being additionally financed with a budget balance at the expense of the central budget in the amount of BGN 1,580,315,352. The purpose of these funds is to acquire the receivables of the Bulgarian Energy Holding (BEH) and Bulgargaz EAD from Toplofikatsia Sofia, explained the minister in resignation and added that this will be done according to the order and up to the amount according to the Law on the State Budget. He added that a positive decision on state aid regimes must be obtained from the European Commission (EC) or that the acquisition does not constitute state aid within the meaning of the Treaty on the Functioning of the European Union (EU). We have systematically accumulated a huge amount of obligations on the part of "Toplofikatsia Sofia" to the energy sector for gas supplies, said Radev and added that over the years, one part of these obligations was transferred from "Bulgargaz" to BEH, another part continues to grow and accumulates in balances with "Bulgargaz". As of December 31, the amount was close to BGN 800 million, at the moment it is again the same volume, explained the resigned Minister of Energy. His expectations are that as of March 31, the liabilities will slightly exceed BGN 800 million. This unfavorable practice ultimately leads to the impressive sum of BGN 1.6 billion in liabilities to the BEH group.
Source: vesti.bg (28.03.2024)

The absurdities in the Bulgarian energy industry continue. With a decision approved on Friday, the resigned government of Nikolay Denkov has amended one of the series of decisions in the sector, obliging "Bulgarian Energy Holding" to donate BGN 728 million to the Power System Security Fund. The strange donation was reached after the National Assembly obliged the Ministry of Finance to urgently provide BGN 1 billion to cover a deficit in the fund, which must cover the costs of liberalization of the electricity market for households. Now, however, it turned out that a local tax amounting to BGN 36.4 million must be paid on the donation. Usually the tax is paid by the recipient, but in this case the cabinet decided to oblige the donor BEH to pay it. By law, the state and municipalities are exempt from local tax on donations, but in this case the grant funding is from a commercial company to a fund. The donation itself should be made within 7 days from the day on which the Ministry of Energy will acquire the debts of "Heating-Sofia" to BEH and "Bulgargaz" for a total value of BGN 1.6 billion. There is currently no data on this operation to be finalized. No similar draft documents for entry have been submitted for the lot of the municipal company. There is no decision of the metropolitan municipal council on the subject, and the company is municipal. The scheme proposed by the "Denkov" cabinet for the transfer of loans and debts in the energy sector is very problematic, especially in terms of state aid. It is not clear whether, against the background of these questions, the caretaker government will not cancel the decree on granting 1.6 billion BGN extraordinary funds from the budget of the Ministry of Energy until receiving an opinion from the EC. The amount was ordered by the Ministry of Finance at the beginning of April, and the huge payment is one of the reasons why the parliament decided to limit payments outside of pensions, salaries and overheads. If the MC revokes the decree, another solution will have to be sought to secure funds for the Power System Security fund.
Source: Sega (12.04.2024)

"Bulgarian Energy Holding" has accepted the resignation of Denitsa Zlateva as executive director of "Bulgargaz" By decision of the Board of Directors (BoD) of "Bulgarian Energy Holding" EAD, a change was made in the management of "Bulgargaz" EAD, as Denitsa Zlateva's resignation was accepted, and Dimitar Spasov and Tatyana Petrova were dismissed from the company's Board of Directors. - Boyadzhieva. Mihail Milkov, Bianka Racheva and Marin Filipovski take their places. By decision of the Board of Directors of Bulgargaz EAD, Veselin Sinabov was appointed as the executive director of the company.
Source: blitz.bg (18.04.2024)

Bulgarian Energy Holding EAD-Sofia (04HA) Bulgarian Energy Holding EAD-Sofia presented a six-month report for the period 01-01-2024 -- 03-31-2024 for compliance with the issuer's obligations to bondholders for issue XS1839682116.
Source: BSE (03.06.2024)

Bulgarian Energy Holding EAD-Sofia (04HA) In view of a forthcoming interest payment on an issue of bonds, please, be informed of the following: - Issuer: Bulgarian Energy Holding EAD-Sofia - BSE code: 04HA - ISIN: XS1839682116 - Date of interest payment: 28.06.2024 - Coupon rate: 3.5 % - All bondholders registered with the Central Depository as of 27.06.2024 (Record Date) will be entitled to receive the payment. - The final date for transacting in bonds of this issue on BSE-Sofia, as a result of which the buyer will have the right to the interest payment, will be 25.06.2024 (Ex Date: 26.06.2024).
Source: BSE (25.06.2024)

Change in the manuals of BEH, Kozloduy NPP and TPP Maritsa East 2" Following a decision of the Minister of Energy and a decision of the Board of Directors (BoD) of "Bulgarian Energy Holding" EAD, Valentin Nikolov and Galina Todorova were elected as executive directors of the holding. Galina Todorova is a lawyer by education. She has over 15 years of experience experience in the energy industry and worked in the energy industry as director of the Legal Department at "Toplofikatsia Sofia" EAD and "Bulgartransgaz" EAD Ivan Andreev and Diyan Dimitrov, who vacated their seats on the Board of Directors of BEH EAD, occupy positions on the Board of Directors respectively. Kozloduy NPP and Maritsa East 2 TPP Jivko Dinchev was dismissed from the Board of Directors of Maritsa East 2 TPP.
Source: Trud (02.07.2024)

Bulgaria's aspiration to membership in the OECD and the explicit requirement to improve the management of state-owned companies does not particularly respect the authorities. On the boards of state-owned companies, appointments without competition continue en masse. This is shown in the annual report of the "Public Enterprises and Control Agency" on state-owned public enterprises for 2022. According to the data up to the end of December 2022, three out of three members of the "Information Service" board were elected without competition. 7 of the 7 members of the management of the state enterprise "Management and management of dams" did not go through the competition procedure. 5 out of 5 members of the board of "Bulgargaz" were also elected without competition. In the transport sector, 5 out of 5 members of "Holding Bulgarian State Railways", as well as 3 out of 3 members of the boards of "Sofia Airport" and "Plovdiv Airport", did not go through a public procedure. Competitions were not held for the management of any of the state companies under the Ministry of Sports, as here all board members - a total of 19 people in 5 companies - were elected without a competition. With the rules for implementing the law, it was practically possible to bypass the requirement for a competition with the possibility to appoint temporary holders for a period of up to 6 months. In 2022, state-owned enterprises reported a serious increase in revenues, with 171 of 265 state-owned enterprises reporting a net profit in the total amount of BGN 3.89 billion. Revenues from operating activities reached BGN 32.8 billion - nearly BGN 13 billion more than 2021, with the main contribution coming from the energy sector with total revenues from operating activities amounting to BGN 25.1 billion. The dividend paid into the state by public enterprises in 2022 is BGN 1.524 billion, with the vast majority of it is a payment from BEH - BGN 1.439 billion, including retained earnings from previous years.
Source: Sega (09.07.2024)

IMF: State-owned companies in Bulgaria are expensive, inefficient and carry risks for everyone Large companies with state participation in Bulgaria have low profitability and inefficient allocation of resources, and although they are not significant in terms of share, they play a decisive role in the production network, which can negatively affect the productivity and competitiveness of the entire economy. The level of state-guaranteed debt of state-owned enterprises is small - on average only 0.5% of GDP in 2010-21 (the average level in the EU is 9%, and in other countries of Central and Eastern Europe it is 3.5%). And the support with such guarantees due to the COVID-19 pandemic was many times lower - 0.3% of GDP in Bulgaria compared to almost 2% in the EU for 2019-2021. But there is a key point - there is no generalized information on guarantees in Bulgaria, issued by the state-owned enterprises themselves, since their activity does not require the approval or supervision of the Ministry of Finance. Thus, total liabilities averaged around 12% of GDP in 2013-2021, which could be a source of concern. This is stated in the Analysis of the International Monetary Fund "Fiscal risks of state-owned companies". The analysis is based on data from 15 companies in which the authorities at various levels have over 50% share: Energy sector (National Electric Company (NEK), Kozloduy NPP, Bulgargaz, TPP Maritsa Iztok 2, Electricity System Operator, Bulgarian energy holding (BEH), Mini Maritsa Iztok, "Bulgartransgaz"), Transport sector (National Railway Infrastructure Company (NRI), BDZ - Passenger Transport Ltd., Air Traffic Control (RVD), Transport Construction and Reconstruction (TSV), BDZ - Cargo Services Ltd., Port of Varna, Bulgarian Port Infrastructure). The total assets and liabilities of these 15 companies represent about 70% of the total for the entire segment with state participation 2015-2021, which covers about 700 companies. The general assessment for them is that the fiscal support is much higher than what they give as revenues to the budget. In 2017-19, they received subsidies, capital investments and capital transfers (direct support) and deferred tax and dividend exemptions (indirect support) of an average of 1.5% of GDP. To this they have responded with a contribution of 0.2%. Net, they absorbed 1.3% of GDP immediately before the pandemic and at the end of the last GERB government. In the first pandemic year (2020), this ratio became 2.5% against 0.1% and is an illustration of how an unexpected shock can lead to large fiscal costs for companies with state participation, the IMF says. These are companies in which 4.1% of all employed work. Their financial stability can affect the fiscal performance of the state, especially when they have incurred potentially significant costs, whether expressly guaranteed or without the authorities making a contractual commitment. In 2023-2024, the state doubled the dividend collected by these companies from 50% to 100% to support the budget, but the price for this is a risk to their investment, productivity and profitability. "Furthermore, the dividend policy lacks predictability and seems to be driven by the needs of the state budget. Such a policy reduces the incentives of companies to invest and thus has a significant adverse effect on economic activity," the authors of the report add. State-owned companies are much, much less profitable than those in the private sector. Return on assets (one of the key measures of profitability) was between minus 1% and 2% for the period 2015-2021, with an average of 10% in private. In 2022, this difference suddenly melted (9% for state-owned, 11% for private), but not because there was better management, but because of three specific companies - NEK, Kozloduy NPP and Maritsa Iztok 2 TPP, and their income from sharply increased energy prices due to Russian aggression against Ukraine. Return on equity (another measure of profitability, measuring a firm's ability to generate profits using its shareholders' capital) for SOEs is on average 20 percentage points lower than that of private firms. Due to the specifics of many state-owned enterprises, profitability is logically lower than that of private ones, but in countries with better management results, the difference between them is 4 percentage points or five times smaller than in Bulgaria, the IMF recalls .Everyone suffers from the bad management of business with state participation. Six state-owned enterprises have been facing short-term challenges in meeting their obligations for years. In the period 2015-2022, without sufficient liquid assets to cover the amounts due to creditors in the next 12 months were National Railway Infrastructure Company, TPP Maritsa Iztok 2, National Electric Company, BDZ - Passenger Transport, BDZ - Freight Transport and Transportation Construction and Reconstruction. Bulgargaz faced a liquidity crisis in mid-2022 due to low collection of receivables and arrears from Toplofikatsia Sofia. Accumulated arrears to suppliers were paid through a (bridging) loan and/or state aid. Another indicator of concern to IMF analysts is the high debt-to-asset ratio (ie, less financial flexibility) of several large state-owned enterprises. These are, for example, "Bulgartransgaz", National Railway Infrastructure, Bulgarian Energy Holding and Electric Power System Operator. It has also seen how debt-to-asset dynamics can change sharply - in the case of Bulgargaz, it jumps from around 45% in 2019 to over 90% in 2022. The combination of high debt and low profitability raises concerns for the ability to service the debt and therefore risks at the fiscal level, the IMF explains.
Source: Dnevnik (18.07.2024)

The state company "Mini Maritsa-East" operates at a huge loss The state company "Mini Maritsa-East" is set to end 2024 with a big loss, it is possible that it will exceed BGN 200 million (with BGN 137.4 million loss for last year). A total of 6,556 workers and employees are employed in the mines. The factors for the deteriorating financial condition of the company derive mainly from the suspended deliveries of coal to the "Contour Global" TPP. After February, only three thermal power plants are supplied from the Mariska basin. Because of this situation, the mine's board of directors has updated its plans for coal production this year - from the originally set 17.4 million tons, to 11.6 million tons. In addition, "Mini Maritsa-East" has stopped new openings. The lack of revenue leads to a situation where mines can no longer fulfill their contractual obligations to 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. As a result of the worsening financial situation of the state-owned company, the management has "frozen" new appointments, and employees with the right to retire are being released, according to the signed Collective Labor Agreement. The two-shift mode of operation has also been changed, as at times of very high 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. To date, "Mini Maritsa-East" has no unpaid obligations to the staff and to the budget, except for the concession fee to the ministry. For this purpose, a short-term measure was taken, with the decision of the Minister of Energy, to secure BGN 150 million from Bulgarian Energy Holding (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 every expenditure from the mines under this loan must be agreed with BEH. At the moment, an opinion is expected from the Main Directorate "Competition" at the EC on the request by the Ministry of Energy to provide the state mines with BGN 250 million for a capital increase
Source: money.bg (29.07.2024)

The energy holding will grant a BGN 56 million loan for salaries in "Mini Maritsa Iztok" "Bulgarian Energy Holding" EAD will grant a BGN 56 million loan to "Mini Maritsa-East" by decision of the Minister of Energy Vladimir Malinov. The money will be used to pay employee salaries, social security, budget payments and more for the months of August and September. At a meeting with the management of the mines, the possibility of workers in "Mini Maritsa-East" EAD and "TPP Maritsa East 2" to benefit from the program for the so-called "early retirement". It will enable employees to retire up to 60 months before becoming entitled to a pension, based on the employer's proposal and a voluntary decision. About 1,700 employees can benefit across the two companies over a period of five years. Talks continue between experts of the Ministry of Energy and representatives of the European Commission to obtain a positive decision on state aid. In April, it was decided that the state will gradually increase its shareholding in the capital of "Bulgarian Energy Holding" EAD through a cash contribution of BGN 250 million each for the next four years, a total of BGN 1 billion for the entire period. With the funds, the capital of "Mini Maritsa-East" EAD will be increased to ensure all the necessary activities and events for the restoration of the disturbed territories and bringing the East-Maritsa coal basin to a sustainable state.
Source: Dnevnik (14.08.2024)

Bulgarian Energy Holding EAD-Sofia (04HA) Bulgarian Energy Holding EAD-Sofia presented a six-month report for the period 04-01-2024 -- 04-30-2024 for compliance with the issuer's obligations to bondholders for issue XS1839682116.
Source: BSE (30.08.2024)

S&P raised the outlook for NEK, in a free market raised its credit rating The international rating agency Standard & Poor's raised the outlook for the "National Electric Company" from stable to positive and confirmed the long-term credit rating of BB. The announcement notes that upon liberalization of the electricity market in 2026, as planned, the credit rating of the state-owned company is expected to be raised as well. The increased outlook means that the company manages its funds and loans in a reliable and balanced manner. This is another improvement for NEK, which still remains with large current debts, but is improving its credit indicators. This was already reflected last year when NEK's rating was raised from BB- to BB. S&P expects that after the liberalization of the retail market in 2026, the company's profitability will improve and its indebtedness will decrease, which in turn could lead to an increase in the credit rating, NEC said. "The increased perspective and the expectation of growth of the credit rating by the leading international rating agency S&P is an important success for the Bulgarian energy sector. This is the result of the consistent work and strategic support of the state. I am confident that this success will contribute to sustainability and development of our energy system," commented Energy Minister Vladimir Malinov. S&P views NEK as a subsidiary of strategic importance to Bulgarian Energy Holding (BEH), given NEK's important role in Bulgaria's energy system as a producer of zero-emission electricity from hydropower plants, a supplier of last resort and a public electricity supplier. The rating agency also takes into account the fact that NEK managed to transform itself from a loss-making enterprise in a certain past period to a company that contributes nearly 10% of BEH's gross profit.
Source: mediapool.bg (09.09.2024)

The EC has definitively refused to allow ESO and Bulgartransgaz to remain in BEH The European Commission did not accept the arguments of the Ministry of Energy ESO and Bulgartransgaz to remain under the umbrella of BEH, which was decided by the National Assembly in 2023. Bulgaria is practically obliged to remove the two companies from the holding, if it does not want to lose significant funds over BGN 1 billion. The two operators will probably be separated into a new holding under the umbrella of BEH, which will not require changes in their certification. Bulgaria will hope to convince Brussels that it is enough to ban cross-subsidization of companies under the umbrella of BEH, but this has not been accepted by the commission. The withdrawal of the operators from BEH will not affect their financial situation, but will affect the holding. BEH's bond loan in the amount of BGN 1.2 billion is due to mature in 2025 in the amount of BGN 600 million, which will require obtaining a loan from the state in the amount of EUR 300 million. Otherwise, there is a risk of early repayment of BEH's bond loans.
Source: Sega (18.09.2024)

The Constitutional Court unanimously declared as illegal the decision of the National Assembly of March 2024, which forbids the Minister of Energy to distribute a BGN 425 million dividend from the Bulgarian Energy Holding (BEH). Then the ban was adopted on the proposal of five deputies from GERB. Immediately afterwards, the government of Prime Minister Nikolay Denkov contested the decision before the Constitutional Court. The court's decision means that BEH will have to transfer the amount to the state budget in the remaining months until the end of this year. The money can be used to replenish the Power System Security Fund. The lack of dividends from energy companies is one of the reasons for the rapid growth of the state's budget deficit for this year, which by the end of September was already BGN 1.6 billion.
Source: economic.bg (04.10.2024)

The energy holding will contribute BGN 280 million to the budget. The Bulgarian energy holding will contribute to the budget the sum of BGN 280 million, which is a dividend for the benefit of the state budget. At the end of March, the National Assembly ordered the Minister of Energy, in his capacity as the sole owner of the holding's capital, not to distribute a dividend to the state from its profit for 2023. However, at the beginning of October, the Constitutional Court issued a decision announcing for the unconstitutional decision of the parliament. Therefore, with a new order of the Council of Ministers, it is determined that the amount should be paid.
Source: Dnevnik (16.10.2024)

BEH transferred BGN 16 million for salaries in "Mini Maritsa-East" for September "Bulgarian Energy Holding" (BEH) transferred BGN 16 million to "Mini Maritsa-Iztok" EAD for the payment of wages to the workers in the mines for the month of September. The money is in accordance with the loan agreement concluded on August 16, 2024. In November, a new transfer in the amount of BGN 28 million will be made, with which salaries for October will be paid. According to the decision of the Minister of Energy Vladimir Malinov, BEH has already provided targeted financing to "Mini Maritsa-iztok" EAD in the total amount of BGN 56 million to ensure the necessary financial resources related to the payment of salaries to employees in the months of July and August. social security, payments to the budget and others. The use of all these funds is possible thanks to the signed framework agreement for financing up to BGN 100 million from BEH EAD and BGN 50 million from a commercial bank, where the holding is a co-debtor. Separately, in October 2024, BEH EAD and "Mini Maritsa-East" signed a new framework agreement for financing in the amount of BGN 100 million until June 30, 2025. Through its action, funds will be provided for the payment of wages of those working in the mines and the company's obligations to the budget in the coming months.
Source: actualno.com (18.10.2024)

Energetic instead of government corps may arise in "Mladost" The project of the last government of Boyko Borissov to build a government complex on the land of "Sofia Tech Park" in the metropolitan district "Mladost" can be transformed into a project to build a headquarters for the state energy companies. This became possible after the interim government allowed the "Bulgarian Energy Holding" (BEH) to acquire from the "State Consolidation Company" (DKK) the right to build on the land in the "Kuro" area. Negotiations are pending between the two companies on whether to do so and, if BEH agrees to acquire the right to build, it must receive carte blanche from the energy minister, followed by an independent analysis of the price the energy conglomerate should pay DCK. The intention is to house other state energy companies such as "Minproekt" in the future central office of the state energy company. The right of construction in question originally belonged to the state company "Sofia Tech Park", but was acquired by DCK in 2019 following a decision of the Council of Ministers. According to the notarial deed issued on the land, which is regulated and has a total area of ??24,811 square meters, construction can be carried out with the following parameters: expanded built-up area up to 86,838 square meters above elevation 0 (zero) and 48,000 square meters m below elevation 0 (zero) and a maximum built-up area of ??14,886 sq. m.
Source: mediapool.bg (06.11.2024)

Bulgarian Energy Holding EAD (04HA) Interim report as of 31 December 2023 on compliance with the terms and conditions of the bond issue, ISIN XS1839682116
Source: BSE (06.11.2024)

"Asarel-Medet" and the Azerbaijani company SOCAR will supply gas to Panagyurishte municipality A binding agreement for the construction of domestic and public gasification in the municipality of Panagyurishte was signed by the Azerbaijani state oil and gas company SOCAR and the Bulgarian company for the extraction of copper and other ores "Asarel-Medet" during the UN World Conference on Climate Change . This summer, Asarel-Medet announced that it had received its first gas supply from Azerbaijan – from the Sokar M-gas company. At the end of June, the caretaker government approved the entry of "Bulgarian Energy Holding" with a 20 percent stake in the Azeri project to build a submarine cable across the Black Sea to Europe to transfer energy from Azeri renewable sources. At the end of May, an agreement was signed in Bucharest between the Romanian CNTEE Transelectrica SA, the Azeri AzerEnerji JSC, the Georgian Electrosystem and the Hungarian MVM to create a joint venture for the implementation of the project. BEH will be the fifth equal partner with one fifth in the joint venture, but this has not yet become a reality.
Source: mediapool.bg (14.11.2024)

BEH ends the half year with a 60% drop in profit The Bulgarian Energy Holding (BEH) ended the first half of the year with a drop in its profit of about 60%. The company reported a net profit of 370.9 million leva compared to 865.8 million leva a year earlier. Operating income fell by 40% to 375 million leva compared to 631 million leva a year earlier. They were formed by dividends, provision of services to the group's subsidiaries, as well as income from interest on loans. Under the umbrella of BEH, practically the entire state energy sector is concentrated - TPP "Maritsa-Iztok 2", "Mini Maritsa-Iztok", "Bulgargaz", ESO, etc. In recent years, the holding has played the role of the main creditor for many of the companies that would actually go bankrupt without such help. To a large extent, this is also one of the reasons for the state's refusal to restructure the company, as it could be a buffer between profitable and losing state-owned companies, without this being considered state aid and falling under EC sanctions. The main reason for the collapse in BEH's profit is the decrease in dividend income, as well as the decrease in the accrued impairment. For example, at the end of June, dividends came from Kozloduy NPP, ESO and ICGB for a total of BGN 375 million (50% of the companies' net profits for 2023). In the first half of last year, however, the dividend (at the same 50% rate) amounted to BGN 630 million and came from Kozloduy NPP, ESO and NEK (for the first six months of 2022). The difference comes from the fact that NEK failed to transfer the second "payment" of the dividend for 2022. The company made a profit of 1 billion leva, but then its finances quickly deteriorated. Due to the lack of money and high liquidity, as well as normal cash flow at the end of 2023, the company was not in a factual position to contribute another 50% dividend for the financial statement for the year ended 2022. In this regard, a new loan of 224 million leva was concluded between BEH and NEK at the beginning of 2024 for the additional payment of the dividend with a repayment period of the end of 2028. As of the end of the first half of 2024, BEH's receivables from loans provided to related parties were 1.8 billion leva, most of which are non-current. In addition to the contract with NEK related to the company's dividend, BEH also reports loans to Bulgargaz, Minproekt and others.
Source: Capital (25.11.2024)

The Bulgarian Independent Energy Exchange (BINEX) has won the auction for the sale of the former headquarters of UBB, which is located on the small "Sveta Sofia" Str. in the very center of the capital. The achieved price is 6 million euros, with a starting price of 4 million euros. The Board of Directors of the Bulgarian Stock Exchange has approved the purchase decision. BSE is the sole owner of the energy exchange, with the ultimate principal in them being the Ministry of Finance, which holds just over 50% of the capital, and the remaining shares are in other investors - banks, institutional and individual investors. The building has 2870 sq. m of built-up area. IBEX is currently renting an office at 138 Vasil Levski Blvd. It employs 27 employees. The parent company, on the other hand, has its own office on "Tri Ushi" Str. However, the building is large and it can be logically assumed that the goal is to eventually accommodate both exchanges in it. This would optimize rental costs, and could potentially lead to synergies from uniting staff under one roof. IBEX has its own funds - cash at the end of 2023 was over 30 million leva, and separately the company also owns securities for over 10 million leva. Along with the energy boom and electricity prices, IBEX is a quite profitable company - last year alone, the net profit was 13.6 million leva, half of which went in the form of a dividend to the Bulgarian Stock Exchange. This is also one of the main reasons for the growth in share prices on the stock exchange - by 44% over the last 12 months to a capitalization of 100 million leva. IBEX was established in 2014 as part of the Bulgarian Energy Holding, and in 2018 it became part of the Bulgarian Stock Exchange in a deal for 5.2 million leva. BGN, which were secured after the sale of government bonds owned by the stock exchange. After the acquisition of UBB by the Belgian group KBC and its merger with SIBank, it moved to its new headquarters in the Millennium Center on Vitosha Blvd. In October 2024, the bank announced a tender for an office building on St. Sofia Street with a starting price of EUR 4 million.
Source: Capital (10.12.2024)

Bulgarian Energy Holding EAD (04HA) Bulgarian Energy Holding EAD presented a six-month report for the period 01-07-2024 -- 30-09-2024 on compliance with the issuer's obligations to bondholders for issue XS1839682116.
Source: BSE (11.12.2024)

Bulgarian Energy Holding EAD (04HA) Bulgarian Energy Holding EAD presented a six-month report for the period 01-04-2024 -- 30-06-2024 on compliance with the issuer's obligations to bondholders for issue XS1839682116.
Source: BSE (13.12.2024)

Grant agreements signed between Bulgarian companies and the US Agency Bulgaria signs grant agreements between four Bulgarian companies and the United States Trade and Development Agency (USTDA). The agency will support Bulgarian Energy Holding EAD, State Enterprise Radioactive Waste, National Railway Infrastructure Company and Information Services EAD to improve processes in the fields of energy, transport and cyber security in the state administration. Cooperation between Bulgaria and the United States Trade and Development Agency is key to the success of the country’s energy transformation, modernization of the transport sector and cyber security in the work of the state administration.
Source: Standart (16.12.2024)