Financial statement
Comprehensive income report
End of year as of 31 December 2014
(In thousands)
|
Note |
2014 |
2013 |
|
|
|
|
Income |
|
|
|
Income of sold electricity |
5 |
12,310,526 |
13,221,560 |
Other income |
6 |
647,330 |
627,081 |
|
|
12,957,856 |
13,848,641 |
|
|
|
|
Costs |
|
|
|
Production costs of lignite |
7,8,9,10,11 |
(5,820,769) |
(6,535,531) |
Depreciation |
7 |
(1,813,435) |
(1,654,815) |
Personnel expenses |
8 |
(1,677,694) |
(1,646,029) |
Costs for maintenance and insurance |
9 |
(461,863) |
(365,254) |
Raw materials and consumer goods |
10 |
(1,776,523) |
(1,709,462) |
Other operating expenses |
11 |
(913,102) |
(854,394) |
Impairment and write-off of user receivables and other receivables, net |
12 |
(1,053,470) |
(986,788) |
|
|
(13,516,856) |
(13,752,273) |
|
|
|
|
(Loss) / Profit from operations |
|
(559,000) |
96,368 |
|
|
|
|
Income from financing |
13 |
50,104 |
114,326 |
Finance expenses |
14 |
(346,250) |
(277,285) |
|
|
|
|
Loss before tax |
|
(855,146) |
(66,591) |
|
|
|
|
Income tax |
15 |
(19,596) |
(65,973) |
|
|
|
|
Net loss for the year |
|
(874,742) |
(132,564) |
|
|
|
|
Other comprehensive income |
|
- |
- |
|
|
|
|
Total comprehensive loss for the year |
|
(874,742) |
(132,564) |
FINANCIAL STATEMENT REPORT
On 31 December 2014
(In thousands-denar currency)
|
|
31 December |
31 December |
|
Note |
2014 |
2013 |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
16 |
459,448 |
465,722 |
Property, plant and equipment |
16 |
41,595,003 |
39,878,841 |
Investments in subsidiaries and joint ventures |
17 |
609,939 |
609,939 |
Financial assets available for sale |
18 |
1,857 |
1,857 |
Long-term receivables |
19 |
611,681 |
1,361,574 |
Other financial assets |
20 |
12,791 |
13,471 |
|
|
43,290,719 |
42,331,404 |
|
|
|
|
Current assets |
|
|
|
Inventories |
21 |
2,713,888 |
2,797,696 |
User receivables and other receivables |
22 |
3,506,709 |
4,260,486 |
Prepaid expenses |
23 |
810,315 |
1,112,288 |
Short-term bank deposits |
24 |
87,445 |
20,171 |
Cash and cash equivalents |
25 |
85,458 |
97,068 |
|
|
7,203,815 |
8,287,709 |
|
|
|
|
TOTAL ASSETS |
|
50,494,534 |
50,619,113 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Capital and reserves |
26 |
|
|
Equity |
|
31,738,878 |
31,738,878 |
Reserves |
|
1,193,140 |
1,193,140 |
Other capital |
|
1,432,239 |
1,429,601 |
Retained (loss)/earnings |
|
(774,818) |
91,595 |
|
|
33,589,439 |
34,453,214 |
|
|
|
|
Non-current liabilities |
|
|
|
Long-term borrowings |
27 |
10,329,025 |
9,989,010 |
Provisions |
28 |
854,640 |
673,361 |
Donations |
29 |
28,554 |
30,848 |
|
|
11,212,219 |
10,693,219 |
|
|
|
|
Current liabilities |
|
|
|
Payables and other liabilities |
30 |
4,297,451 |
4,073,164 |
Current maturities of long-term borrowings |
27 |
1,321,232 |
1,336,713 |
Short-term borrowings |
31 |
74,193 |
62,803 |
|
|
5,692,876 |
5,472,680 |
|
|
|
|
Total liabilities |
|
16,905,095 |
16,165,899 |
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
50,494,534 |
50,619,113 |
REPORT ON CHANGES IN EQUITY
End of year as of 31 December 2014
(In thousands-denar currency)
|
Share capital |
Reserves |
Other capital |
Accumulated (loss)/profit |
Total |
|
|
|
|
|
|
Balance on January 1, 2013 |
31,738,878 |
1,145,378 |
1,429,662 |
271,921 |
34,585,839 |
Allocation of profit from 2012 |
- |
47,762 |
- |
(47,762) |
- |
Loss for the year |
- |
- |
- |
(132,564) |
(132,564) |
Other |
- |
- |
(61) |
- |
(61) |
Other comprehensive income |
- |
- |
- |
- |
- |
|
|
|
|
|
|
Balance on January 1, 2014 |
31,738,878 |
1,193,140 |
1,429,601 |
91,595 |
34,453,214 |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
(874,742) |
(874,742) |
Other |
- |
- |
2,638 |
8,329 |
10,967 |
Other comprehensive income |
- |
- |
- |
- |
- |
|
|
|
|
|
|
Balance on 31 December 2014 |
31,738,878 |
1,193,140 |
1,432,239 |
(774,818) |
33,589,439 |
REPORT ON CASH FLOW
End of year as of 31 December 2014
(In thousands-denar currency)
|
2014 |
2013 |
|
|
|
Cash flows from operating activities |
|
|
Loss before tax |
(855,146) |
(66,591) |
Adjustments for: |
|
|
Error correction of previous years |
8,329 |
- |
Depreciation |
2,363,957 |
2,249,127 |
Impairment of financial assets available for sale |
- |
7,500 |
Impairment of deposits |
- |
3,000 |
Impairment and write-off user receivables and other receivables, net |
1,053,470 |
976,288 |
Foreign exchange gains, net |
743 |
46,376 |
Interest expense, net |
295,403 |
203,291 |
Shortages in stock |
4,024 |
2,042 |
Provision for reclamation of land |
94,830 |
93,064 |
Reservations / (release of allowance) for employee benefits, net |
31,827 |
(4,422) |
Provision from potential losses under litigation |
71,667 |
47,389 |
Carrying value of alienated and decommissioned property, plant and equipment |
7,593 |
4,421 |
Income from de recognition of liabilities |
(7,857) |
(3,041) |
Income from amortization of donations |
(2,271) |
(2,315) |
Income from participation in profits of subsidiaries |
(255,731) |
(84,053) |
Operating profit before changes in working capital |
2,810,838 |
3,472,076 |
Changes in working capital |
|
|
Decrease / (increase) in inventories |
79,784 |
(36,260) |
Reduction of user receivables, other receivables and long-term receivables |
757,491 |
764,389 |
Increase / (decrease) in trade payables and other liabilities |
291,607 |
(740,641) |
|
3,939,720 |
3,459,564 |
Interest paid |
(344,999) |
(247,474) |
Paid income tax |
(24,914) |
(115,162) |
Net cash from operating activities |
3,569,807 |
3,096,928 |
|
|
|
Cash flows from investing activities |
|
|
Purchase of tangible and intangible assets, |
(4,076,125) |
(5,981,650) |
Investments in short-term bank deposits |
(57,704) |
(19,211) |
Proceeds from / (given) Loans to resident legal entities |
680 |
(17) |
Proceeds from the share in the profit of subsidiaries |
255,731 |
84,053 |
Net cash used in investing activities |
(3,877,418) |
(5,916,825) |
|
|
|
Cash flows from financial activities |
|
|
Dividends paid |
- |
(37,453) |
Proceeds from borrowings, |
296,001 |
2,300,242 |
Net cash from financial |
296,001 |
2,262,789 |
|
|
|
Net decrease in cash |
(11,610) |
(557,108) |
Cash at the beginning of the year |
97,068 |
654,176 |
|
|
|
Cash at the end of year |
85,458 |
97,068 |
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
1. INCOME ON SOLD ELECTRICITY
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Income from sales of electricity to EVN Macedonia |
9,798,030 |
11,375,553 |
Income from sales of electricity to AD MEPSO |
1,169,377 |
958,417 |
Income from sales of electricity of night surpluses |
1,002,848 |
667,421 |
Income form sales of electricity, thermal energy and heated water to specialist and end consumers |
340,271 |
220,169 |
|
|
|
|
12,310,526 |
13,221,560 |
2. OTHER INCOME
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Compensation claims from insurance |
28,175 |
50,827 |
Income from sales of other products and services |
299,521 |
394,931 |
Income from participation in profits of subsidiaries |
255,731 |
84,053 |
Collected penalties |
513 |
279 |
Release of reservation for employee benefits |
302 |
4,422 |
Write-off of short-term liabilities |
7,857 |
3,041 |
Rental income |
1,651 |
1,477 |
Income from amortization of donations (Note 29) |
2,271 |
2,315 |
Reimbursement of expenses for employees |
22,392 |
37,895 |
Other |
28,917 |
47,841 |
|
|
|
|
647,330 |
627,081 |
3. DEPRECIATION
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Accrued depreciation for the year |
2,363,957 |
2,249,127 |
Reduced for lignite production costs |
(550,522) |
(594,312) |
|
|
|
|
1,813,435 |
1,654,815 |
4. PERSONNEL EXPENSES
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Net salary, income tax and fees from salaries |
3,080,177 |
3,170,384 |
Other mandatory employee benefits |
229,371 |
224,992 |
Provisions for employee benefits |
32,129 |
- |
|
3,341,677 |
3,395,376 |
|
|
|
Reduced for lignite production costs |
(1,663,983) |
(1,749,347) |
|
|
|
|
1,677,694 |
1,646,029 |
5. COSTS FOR MAINTENANCE AND INSURANCE
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Costs for maintenance |
2,839,503 |
3,268,382 |
Costs for insurance |
186,528 |
212,309 |
|
3,026,031 |
3,480,691 |
|
|
|
Reduced for lignite production costs |
(2,564,168) |
(3,115,437) |
|
|
|
|
461,863 |
365,254 |
6. RAW MATERIALS AND CONSUMER GOODS
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Cost of electricity sold |
189,496 |
88,475 |
Spare parts |
906,018 |
797,233 |
Fuel oil |
907,106 |
779,273 |
Natural gas |
221,646 |
305,851 |
Liquid fuel |
101,044 |
110,638 |
Water |
124,298 |
112,358 |
Raw materials |
131,176 |
175,114 |
Expenditures on stationery |
10,632 |
11,297 |
Electricity consumption |
13,210 |
11,728 |
Costs for heating |
3,346 |
4,228 |
Lubricants and oils |
10,834 |
11,980 |
|
2,618,806 |
2,408,175 |
|
|
|
Reduced for lignite production costs |
(842,283) |
(698,713) |
|
|
|
|
1,776,523 |
1,709,462 |
7. OTHER OPERATING COSTS
|
In thosands-denar currency |
|
|
2014 |
2013 |
|
|
|
Costs for contract work |
176,949 |
89,697 |
Ancillary services for the provision of reserve power |
180,209 |
186,518 |
Other production services |
25,786 |
116,744 |
Mediation services for the sale of surplus electricity |
- |
18,815 |
Provision for reclamation of land |
94,830 |
93,064 |
Additionally paid income tax upon records of PRO ( Public Revenue Office) |
- |
51,526 |
Provisions for litigation |
71,667 |
47,389 |
Sponsorships and donations |
99,477 |
110,990 |
Contribution for water |
79,590 |
73,978 |
Transportation services |
44,599 |
125,562 |
Utilities |
34,978 |
30,604 |
Bank fees |
24,077 |
22,753 |
Costs for electricity transmission |
50,470 |
10,040 |
Telephone and postal charges |
9,679 |
12,565 |
Expenditures |
7,068 |
12,941 |
Costs of current OSH |
11,357 |
11,194 |
Membership fees |
7,283 |
6,886 |
Marketing |
10,318 |
33,830 |
Court costs |
15,889 |
9,372 |
Carrying value of alienated property, plant and equipment |
7,593 |
4,421 |
Professional training |
- |
3,491 |
Shortages of supplies in inventory |
4,024 |
2,042 |
Taxes and contributions not depending on result |
225 |
235 |
Interest on tax record of the PRO |
- |
9,213 |
Other |
156,847 |
148,246 |
|
1,112,915 |
1,232,116 |
|
|
|
Reduced for lignite production costs |
(199,813) |
(377,722) |
|
|
|
|
913,102 |
854,394 |
8. INCOME FROM FINANCING
|
In thousand denars |
|
|
2014 |
2013 |
|
|
|
Income from interest |
9,570 |
86,708 |
Positive exchange differences |
40,534 |
27,618 |
|
|
|
|
50,104 |
114,326 |
9. FINANCIAL EXPENSES
|
In thousand denars |
|
|
2014 |
2013 |
|
|
|
Expenses from interest |
(294,119) |
(177,748) |
Interest on late payments |
(10,854) |
(25,543) |
Negative exchange differences |
(41,277) |
(73,994) |
|
|
|
|
(346,250) |
(277,285) |
10. MONEY AND MONEY EQUIVALENTS
|
In thousand denars |
|
|
31 December 2014 |
31 December 2013 |
Monetary assets in banks: |
|
|
- in denars |
35,338 |
86,069 |
- in foreign currencies |
49,997 |
10,913 |
Cash in hand |
123 |
86 |
|
|
|
|
85,458 |
97,068 |
11. CAPITAL AND RESERVES
a. Share capitalThe share capital of the Company amounts to 31,738,878 thousand denars and is divided into 31,738,878 ordinary shares with nominal value of 1,000 denars per share. On December 31, 2014 and 2013 the structure of the share capital of the Company according to the Report of the Central Depository of Securities is as follows:
|
% structure |
In thousand denars |
||
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Government of the Republic of Macedonia |
100% |
100% |
31,738,878 |
31,738,878 |
|
|
|
|
|
|
100% |
100% |
31,738,878 |
31,738,878 |
b. Revaluation reserves
In accordance with Macedonian accounting regulations in previous years, revaluation of property, plant and equipment is calculated based on published price indices of industrial products. These factors influenced the increase in the recorded balances of property, plant and equipment, the effect of which influenced the revaluation reserves.
c. Mandatory reserve
In accordance with the local regulations, the Company is required each year to allocate mandatory reserve, which is formed by capturing 5% of the net income. The allocation is made until the reserve reaches an amount equal to one tenth of the capital. By reaching the legal minimum this reserve can only be used to cover the loss, and when they exceed the required minimum excess can be used for payment of dividends.
d. Other capital
The Company has a special reserve which may be used to cover losses and for other purposes, including: risk insurance to employees, retirement and payment of compensations above the standard amount, charity; death of a worker or family member; severe consequences of natural disasters, illness and a severe disability or serious illness, funeral expenses, professional development and sponsorship. The manner of creation, investment, organization and use, the amount of funds, and plan and program of using the allowance is determined by the Assembly of Shareholders of the Company by a special act.
12. RECEIVABLES FROM CUSTOMERS AND OTHER RECEIVABLES
|
In thousand denars |
|
|
31 December 2014 |
31 December 2013 |
|
|
|
Receivables from customers - regular |
|
|
Receivables from customers in the country |
3,134,156 |
3,173,567 |
Receivables from customers abroad |
4,238 |
4,311 |
|
3,138,394 |
3,177,878 |
Less: impairment losses (Note 12) |
(306,884) |
(139,838) |
|
2,831,510 |
3,038,040 |
|
|
|
Receivables from customers - divisional balance |
|
|
Current portion of receivables from public institutions from concluded agreements |
749,275 |
698,003 |
Receivables from EVN Makedonija from unsigned agreements with public institutions |
73,527 |
- |
|
822,802 |
698,003 |
Less: impairment losses (Note 12) |
(510,703) |
- |
|
312,099 |
698,003 |
|
|
|
Receivables from customers - total |
3,961,196 |
3,875,881 |
Less: impairment losses |
(817,587) |
(139,838) |
|
3,143,609 |
3,736,043 |
|
|
|
Other receivables |
|
|
Receivables from subsidiaries |
114,603 |
100,630 |
Less: impairment losses |
- |
- |
|
114,603 |
100,630 |
|
|
|
Receivables from interests |
1,117,782 |
1,115,286 |
Less: impairment losses (Note 12) |
(1,033,380) |
(1,041,709) |
|
84,402 |
73,577 |
|
|
|
Receivables based on loan from IBRD |
78,933 |
108,621 |
Inconsistent receivables of internal relations (transactions between organizational units) |
- |
20,871 |
Receivables based on loans given to other domestic legal entities |
48,560 |
8,784 |
Receivables from employees |
3,239 |
7,827 |
Receivables from insurance companies |
- |
24,331 |
Receivables from Value added tax |
- |
151,757 |
Receivables for pre-paid income tax |
41,919 |
36,601 |
|
172,651 |
358,792 |
Less: impairment losses (Note 12) |
(8,556) |
(8,556) |
|
164,095 |
350,236 |
|
|
|
|
3,506,709 |
4,260,486 |
13. LIABILITIES TO SUPPLIERS AND OTHER LIABILITIES
|
In thousand denars |
|
|
31 December 2014 |
31 December 2013 |
|
|
|
Suppliers: |
|
|
Domestic |
3,194,692 |
2,920,544 |
Foreign |
85,124 |
73,671 |
3,279,816 |
2,994,215 |
|
|
|
|
Other liabilities: |
|
|
Liabilities towards subsidiaries |
215,959 |
451,042 |
Liabilities for salaries |
156,190 |
162,736 |
Liabilities from VAT |
56,423 |
- |
Liabilities for contributions and payroll taxes |
88,022 |
91,353 |
Other liabilities to employees |
62,851 |
67,600 |
Interest liabilities |
26,252 |
26,355 |
Liabilities under leasing contracts |
- |
194 |
Liabilities on the basis of Collective Agreement |
1,329 |
5 |
Other |
34,972 |
32,164 |
|
|
|
641,998 |
831,449 |
|
Accrual costs: |
|
|
Accrued annuities from loan from IBRD |
24,923 |
191 |
Accrual costs for open letters of credit for the purchase of equipment |
347,999 |
130,009 |
Other |
2,715 |
40,129 |
375,637 |
170,329 |
|
|
|
|
Deferred incomes from undertaken receivables (Note 12) |
- |
77,171 |
|
|
|
4,297,451 |
4,073,164 |
|