Slovenské elektrárne: The biggest investor in Slovakia

16/07/2015
Slovenské elektrárne: The biggest investor in Slovakia
The Slovak subsidiary of Enel Group invested almost 707 million euros in 2014 and remained #1 investor in the country according to Trend TOP 200

According to the Trend TOP 200 ratings for year 2014, published by the business weekly Trend, the energy utility Slovenské elektrárne remains the biggest investor in Slovakia. The subsidiary of Enel Group top-ranked in several other categories.

With the investment of almost 707 million euros in 2014, Slovenské elektrárne is the largest investor in Slovakia the second year in a row. The cash-flow was more intensive, since in comparison with 2013 it grew by 61 million euros (+9 %). Since Enel acquired 66% of the Slovak utility in 2006, it has been re-investing its local profits into the development of new power plants and upgrades of the existing ones, not distributing dividends to its shareholders.  

Doing well in spite of hard times

"Despite unfavourable market conditions we have stayed engaged in pursuing our ambitious goals in order to achieve the planned financial results," said Nicola Cotugno, General Director of Slovenské elektrárne. And they have managed to do so. Even though the economic performance of the Company may be less impressive than in the previous years, it still represents very important success – in particular, when reflected against the challenging times for the power industry in Europe, where the compensation of losses and ability to achieve profit is remarkable.

In 2014 the declining trend if electricity prices in the region where Slovenské elektrárne operates prevailed with the wholesale price dropping by 20 % year-on-year to hit a new bottom at EUR 33.8/MWh, which is a drop by 60 % compared to 2008. In spite of these unfavourable conditions, the Company maintained the volumes of electricity production and supply and managed to defend its position both in the Slovak and regional markets.

Last year Slovenské elektrárne generated 22,015 GWh of electricity thus becoming the largest electricity produced in Slovakia with 80 % market share.

   CompanyInvestments
(thousands of euros)
Change
(%)
Investments/AssetsTotal assets
(thousands of euros)
201420132014/13201420132014
1 Slovenské elektrárne, a.s,, Bratislava 706 692 646 358 9,3 7,8 7,8 9 068 549
2 Železnice SR, Bratislava 277 111 325 356 -14.8 8,2 9,5 3 368 645
3 Slovnaft, a.s., Bratislava 243 154 205 707 18,2 11,1 9,0 2 184 582
4 Volkswagen Slovakia, a.s., Bratislava 232 930 351 916 -33.8 10,4 16,1 2 243 723
5 Orange Slovensko, a.s., Bratislava 146 820 88 377 66,1 23,9 15,6 613 325
6 SlovakTelekom, a.s., Bratislava 113 042 170 333 -33,6 5,7 8,4 1997171
7 SEPS, a.s., Bratislava 89 038 100 593 -11,5 10,2 11,1 872 305
8 Continental Matador Rubber, s.r.o., Puchov 86 975 66 365 31,1 14,1 13 615 948
9 Duslo, a.s., Šaľa 79 226 32 711 142,2 17,5 8,0 452 799
10 O2 Slovakia, s.r.o., Bratislava 74 520 17 197 333,3 36,4 7,6 204 445
11 Bratislavská vodárenská spoíočnosí, a.s., Bratislava 73 044 49 709 46,9 13,3 10,2 548 588
12 Západoslovenská energetika, a.s., Bratislava 70 503 74 374 -5,2 8,4 9,1 841 229
13 U.S. Steel Košice, s.r.o., Košice 63 024 46 779 34,7 3,8 3,2 1 646 720
14 Vodohospodárska výstavba, š.p., Bratislava 55 703 14 899 273,9 4,5 1,2 1 226 015
15 Východoslovenská energetika Holding, a.s., Košice 53 847 46 626 15,5 11,4 10,7 470 837
16 INA Kysuce, s.r.o., Kysucké Nové Mesto 43 244 20 225 113,8 14,4 7,3 300 919
17 Dopravný podnik Bratislava, a.s., Bratislava 39 494 13 002 203,8 20 8,3 197 432
18 Eustream, a.s., Bratislava 38 970 41 026 -5,0 1,1 1,1 3 417 439
19 Východoslovenská vodárenská spoločnosť, a.s., Košice 38 011 19 243 97,5 6,9 3,6 548 578
20 Samsung Electronics Slovakia, s.r.o., Galanta 35 239 27 687 27,3 2,5 2,3 1 398 929
Zdroj: TREND

This excellent performance is backed up – in addition to the continuous increase of operation efficiency – by the new sustainable business model and activities in new areas, as well. Last year Slovenské elektrárne completed its transition from an energy supplier to a company providing complex energy services, e.g. energy performance contracting.

Innovations play a significant role. Hand in hand with the delivery of services clients may, for example, receive a guarantee that if they save on their consumption they will be rewarded. This is of course accompanied with the reduction of CO2 emissions and production of green energy. Thanks to many measures and innovations, today Slovenské elektrárne can proudly declares that 92 % of its electricity is greenhouse gas free – which makes the company a definite leader in the region.


Read: Slovenské Elektrárne 2014 Annual Report


The most important and biggest investment of the company is the construction of units 3 and 4 of the Mochovce nuclear power plant. At the same time, it is historically the biggest private investment in Slovakia.

According to the current data, 86 % of unit three has been completed; while 79 % of the whole Mochovce project  has been completed. Currently, there are 4,800 people working at the construction site.

The total budget for the construction of the new units at Mochovce amounts to 4.6 billion euros. After their completion, the two units will be able to cover 25% of the energy consumption in Slovakia. At the same time, the country will recover its significant position of an exporter while maintaining the highest safety, reliability and efficiency standards. The share of clean energy production (without CO2 emissions) within the total production of Slovenské elektrárne will grow.

There is an important greening project going on at the lignite-fired Nováky Power Plant, as well; after the investment project is finished, units 1 and 2 will comply with the newest emission standards valid as of 2016.

Even though 2014 was not an easy year, the largest Slovak companies managed to stay competitive and generate profits. All that to such a point that for the company to rank among the Trend TOP 200 firms, its revenues had to be at least 16 million euros higher than in 2013.

The financial performance of Slovenské elektrárne remained excellent; last year's net profit amounted to 170 million euros, which in the Trend TOP 200 rankings earned a third place for the Company.

In the TOP Trend ranking Slovenské elektrárne took the leading places also with respect to the highest net cash-flow and EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation). It was at the level of 531 million euros – less than in 2013, but still winning the third place for Slovenské elektrárne in the Trend TOP 200 rating of non-financial Slovak companies.

TOP Employer

With more than four thousand employees, Slovenské elektrárne still belongs to the top employers in Slovakia. In 2014, the average age of employees in the Slovak energy utility was 45.95 years and average length of service in the company reached 19.43 – meaning that the employees have long years of experience and know-how. As Slovenské declares it: "People are our most valuable asset."

In addition to the investments into education and training of the employees, the image of a good company only benefits from the received most prestigious award for CSR (Corporate Social Responsibility) activities in Slovakia called Via Bona. In 2014, Slovenské elektrárne set apart approximately 520,000 euros for philanthropic and charitable projects.