Financial report
Report on comprehensive profit
Year ending on December 31, 2015
(In thousands Denars)
|
Note |
2015 |
2014 |
|
|
|
|
Income |
|
|
|
Revenue from the sale of electricity |
5 |
13,367,780 |
12,310,526 |
Other income |
6 |
818,710 |
647,330 |
|
|
14,186,490 |
12,957,856 |
|
|
|
|
Costs |
|
|
|
Increasing/(Decreasing) of coal stocks |
|
108,182 |
(41,206) |
Costs for production of lignite |
7,8,9,10,11 |
(6,208,769) |
(5,820,769) |
Amortization |
7 |
(1,992,800) |
(1,813,435) |
Staff costs |
8 |
(1,614,331) |
(1,677,694) |
Maintenance costs and insurance |
9 |
(512,391) |
(461,863) |
Raw materials and expendables |
10 |
(1,157,391) |
(1,776,523) |
Other operating costs |
11 |
(974,040) |
(913,102) |
Correction of the value of the investment in the subsidiaries |
17 |
(2,090) |
- |
Correction of the value and write off of trade receivables and other receivables, net |
12 |
(972,054) |
(1,053,470) |
|
|
(13,325,684) |
(13,516,856) |
|
|
|
|
(Lost) /Profit from the operation |
|
860,806 |
(559,000) |
|
|
|
|
Financing income |
13 |
50,211 |
50,104 |
Financing expenses |
14 |
(348,278) |
(346,250) |
|
|
|
|
Profit/ lost before taxation |
|
562,739 |
(855,146) |
|
|
|
|
Income tax |
15 |
(152,595) |
(19,596) |
|
|
|
|
Net profit ( lost) for year |
|
410,144 |
(874,742) |
|
|
|
|
Remaining Comprehensive income |
|
- |
- |
|
|
|
|
Total comprehensive yearly loss |
|
410,144 |
(874,742) |
REPORT ON THE FINANCIAL SITUATION
On December 31, 2015
(In thousands denars)
|
|
31 December |
31 December |
|
Note |
2015 |
2014 |
Assets |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
16 |
616,498 |
459,448 |
Real estate, plant and equipment |
16 |
41,095,334 |
41,595,003 |
Investments in subsidiaries and joint ventures |
17 |
713,769 |
609,939 |
Available-for-sale financial assets |
18 |
1,856 |
1,857 |
Long-term receivables |
19 |
83,002 |
611,681 |
Other financial assets |
20 |
12,791 |
12,791 |
|
|
42,523,250 |
43,290,719 |
|
|
|
|
Current assets |
|
|
|
Stock |
21 |
2,540,012 |
2,713,888 |
Trade receivables and other receivables |
22 |
2,981,073 |
3,506,709 |
Advance paid expenses |
23 |
666,337 |
810,315 |
Short-term deposits in banks |
24 |
211,610 |
87,445 |
Money and monetary equivalents |
25 |
197,881 |
85,458 |
|
|
6,596,913 |
7,203,815 |
|
|
|
|
TOTAL ASSETS |
|
49,120,163 |
50,494,534 |
|
|
|
|
STOCKHOLDER’S PRINCIPAL AND LIABILITIES |
|
|
|
Capital and reserves |
26 |
|
|
Equity capital |
|
31,738,878 |
31,738,878 |
Reserves |
|
1,067,766 |
1,193,140 |
Remaining capital |
|
1,432,238 |
1,432,239 |
Accumulated (lost)/profit |
|
(239,300) |
(774,818) |
|
|
33,999,582 |
33,589,439 |
|
|
|
|
Non-current obligations |
|
|
|
Long-term loans |
27 |
8,991,447 |
10,329,025 |
Reservations |
28 |
1,123,083 |
854,640 |
Donations |
29 |
31,323 |
28,554 |
|
|
10,145,853 |
11,212,219 |
|
|
|
|
Current obligations |
|
|
|
Obligations towards suppliers and other obligations |
30 |
3,431,565 |
4,297,451 |
Current maturity of long-term borrowings |
27 |
1,543,163 |
1,321,232 |
Short -term borrowings |
31 |
- |
74,193 |
|
|
4,974,728 |
5,692,876 |
|
|
|
|
Total obligations |
|
15,120,581 |
16,905,095 |
|
|
|
|
TOTAL STOCKHOLDER’S PRINCIPAL AND LIABILITIES |
|
49,120,163 |
50,494,534 |
REPORT FOR CHANGES IN THE JOINT STOCK COMPANY
Year ending on 31st December 2015
(in thousand denars)
|
Shareholder’s capital |
Reserves |
Remaining capital |
Accumulated (loss/profit) |
TOTAL |
|
|
|
|
|
|
Condition on 1 January 2014 |
31,738,878 |
1,193,140 |
1,429,601 |
91,595 |
34,453,214 |
Loss for year |
- |
- |
- |
(874,742) |
(874,742) |
Оther |
- |
- |
2,638 |
8,329 |
10,967 |
Other comprehensive profit |
- |
- |
- |
- |
- |
Condition on 1 January 2015 |
31,738,878 |
1,193,140 |
1,432,239 |
(774,818) |
33,589,439 |
|
|
|
|
|
|
Profit for year |
- |
- |
- |
410,144 |
410,144 |
Cover of loss |
- |
(125,374) |
- |
125,374 |
- |
Other |
- |
- |
(1) |
- |
(1) |
Other comprehensive profit |
- |
- |
- |
- |
- |
Condition on 31 December 2015 |
31,738,878 |
1,067,766 |
1,432,238 |
(239,300) |
33,999,582 |
REPORT ON CASH FLOW
Year ending on December 31, 2015
( In thousand denars)
|
2015 |
2014 |
|
|
|
Cash flows from operating activities |
|
|
Profit/Loss before taxation |
562,739 |
(855,146) |
Corrections for: |
|
|
Error correction from previous years |
- |
8,329 |
Amortization |
1,992,800 |
2,363,957 |
Correction of value of investments in subsidiaries |
2,090 |
- |
Correction of the value and write off of trade receivables and other receivables, net |
868,053 |
1,053,470 |
Exchange differences, net |
27,169 |
743 |
Interest expense, net |
298,067 |
295,403 |
Shortages in stock |
176 |
4,024 |
Value adjustment of inventories |
2,548 |
|
Reservations for reclamation of land |
191,570 |
94,830 |
Reservations / (release of reservations) for employees' benefits, net |
43,215 |
31,827 |
Reserve from potential losses on the basis of litigation |
86,455 |
71,667 |
Unwritten value of alienated and disposed property, plant and equipment |
234 |
7,593 |
Income from write-off of liabilities |
(20) |
(7,857) |
Income from amortization of donations |
(2,601) |
(2,271) |
Revenue from profit from subsidiaries |
- |
(255,731) |
Operating profit before changes in working capital |
4,072,495 |
2,810,838 |
Changes in working capital |
|
|
Decreasing/(Increasing) of stocks |
171,152 |
79,784 |
Reduction of trade receivables, other receivables and long-term receivables |
290,237 |
757,491 |
Increasing/(decreasing) of the obligations towards the suppliers and other remaining obligations |
(1,038,695) |
291,607 |
|
3,495,189 |
3,939,720 |
Paid interest |
(298,067) |
(344,999) |
Paid corporate income tax |
(54,362) |
(24,914) |
Net money from operating activities |
3,142,760 |
3,569,807 |
|
|
|
Cash flows from investing activities |
|
|
Procurement of tangible and intangible assets, net inflows |
(1,650,416) |
(4,076,125) |
Investments in subsidiaries |
(105,920) |
- |
Investments in short-term deposits in a bank |
(124,165) |
(57,704) |
Inflows from / (granted) loans to domestic legal entities |
40,004 |
680 |
Proceeds from participation in profits from subsidiaries |
- |
255,731 |
Net money used for investment activities |
(1,840,497) |
(3,877,418) |
|
|
|
Cash flows from financial activities |
|
|
Paid dividends |
- |
- |
Inflows from loans, net |
(1,189,840) |
296,001 |
Net money from financial activities |
(1,189,840) |
296,001 |
|
|
|
Net increase / decrease in monetary assets |
112,423 |
(11,610) |
Financial assets at the beginning of the year |
85,458 |
97,068 |
|
|
|
Financial assets at the end of the year |
197,881 |
85,458 |
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
1. REVENUES FROM ELECTRICITY SALE
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Revenues from sale of electricity to EVN Macedonia AD Skopje |
11,223,480 |
9,798,030 |
Revenues from the sale of electricity to AD Mepso |
1,226,410 |
1,169,377 |
Revenue from the sale of night surpluses |
645,910 |
1,002,848 |
Revenues from the sale of electricity, heat and heated water to qualified and end-consumers |
271,980 |
340,271 |
|
|
|
|
13,367,780 |
12,310,526 |
2. OTHER REVENUE
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Compensation for insurance claims |
100,851 |
28,175 |
Revenue from the sale of other products and services |
154,871 |
299,521 |
Revenue from profit from subsidiaries |
- |
255,731 |
Paid penalties |
414,026 |
513 |
Exemption of reservation for benefit of the employees |
- |
302 |
Write-off of short-term liabilities |
20 |
7,857 |
Revenues from paid written-off debts |
104,001 |
- |
Release of a reservation for court disputes |
6,707 |
- |
Rental income |
3,121 |
1,651 |
Income from amortization of donations (Note 29) |
2,601 |
2,271 |
Refund of employee benefits |
7,503 |
22,392 |
Other |
25,009 |
28,917 |
|
|
|
|
818,710 |
647,330 |
3. AMORTIZATION
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Calculated amortization for the year |
2,513,836 |
2,363,957 |
Reduced for lignite production costs |
(521,036) |
(550,522) |
|
|
|
|
1,992,800 |
1,813,435 |
4. EMPLOYEE COST
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Net salaries, personal income taxes and wages |
3,043,326 |
3,080,177 |
Other mandatory employee benefits |
226,207 |
229,371 |
Reservations for employee benefits |
43,215 |
32,129 |
|
3,312,748 |
3,341,677 |
|
|
|
Reduced for lignite production costs |
(1,698,417) |
(1,663,983) |
|
|
|
|
1,614,331 |
1,677,694 |
5. COSTS OF MAINTENANCE AND INSURANCE
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Maintenance costs |
3,538,948 |
2,839,503 |
Insurance costs |
171,819 |
186,528 |
|
3,710,767 |
3,026,031 |
|
|
|
Reduced costs for lignite production |
(3,198,376) |
(2,564,168) |
|
|
|
|
512,391 |
461,863 |
6. RAW MATERIALS AND CONSUMER GOODS
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Purchase value of sold electricity |
59,606 |
189,496 |
Spare parts |
835,239 |
906,018 |
Mazut |
424,505 |
907,106 |
Natural gas |
193,765 |
221,646 |
Liquid fuel |
72,063 |
101,044 |
Water |
132,683 |
124,298 |
Raw materials |
49,154 |
89,970 |
Consumption of small inventory |
8,667 |
10,632 |
Consumed electricity |
14,955 |
13,210 |
Costs for heating |
2,970 |
3,346 |
Lubricants and oils |
5,333 |
10,834 |
|
1,798,940 |
2,577,600 |
|
|
|
Reduced for lignite production costs |
(641,549) |
(842,283) |
|
|
|
|
1,157,391 |
1,776,523 |
7. OTHER OPERATIVE COSTS
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Costs for contract of work |
168,418 |
176,949 |
System services for providing power reserve |
181,613 |
180,209 |
Other production services |
17,310 |
25,786 |
Services for arranging sales of surplus electricity |
- |
- |
Reservations for land reclamation |
191,570 |
94,830 |
Additional paid income tax from the record of PRA |
- |
- |
Reservation of court disputes |
93,162 |
71,667 |
Sponsorships and donations |
24,831 |
99,477 |
Contribution for water |
78,644 |
79,590 |
Transportation services |
29,985 |
44,599 |
Utilities |
27,143 |
34,978 |
Bank provisions |
16,574 |
24,077 |
Costs for transmission of electricity |
69,740 |
50,470 |
Telephone and postage costs |
7,134 |
9,679 |
Representation |
5,552 |
7,068 |
Costs for current protection at work |
9,813 |
11,357 |
Memberships |
7,859 |
7,283 |
Marketing |
125 |
10,318 |
Judicial expenses |
7,883 |
15,889 |
Unwritten value of alienated real estate, plant and equipment |
234 |
7,593 |
Professional training |
452 |
- |
Shortages of supplies in inventory |
176 |
4,024 |
Taxes and contributions that do not depend on the result |
55 |
225 |
Value adjustment of inventories |
2,548 |
- |
Other |
182,610 |
156,847 |
|
1,123,431 |
1,112,915 |
|
|
|
Reduced for lignite production costs |
(149,391) |
(199,813) |
|
|
|
|
974,040 |
913,102 |
8. INCOME FROM FINANCING
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Interest income |
27,626 |
9,570 |
Позитивни курсни разлики |
22,585 |
40,534 |
|
|
|
|
50,211 |
50,104 |
9. FINANCE EXPENSES
|
In thousand denars |
|
|
2015 |
2014 |
|
|
|
Interest expense |
(296,134) |
(294,119) |
Interest on late payments |
(2,390) |
(10,854) |
Negative exchange rate differences |
(49,754) |
(41,277) |
|
|
|
|
(348,278) |
(346,250) |
10. MONEY AND CASH EQUIVALENTS
|
In thousand denars |
|
|
31 December 2015 |
31 December 2014 |
|
|
|
Monetary assets in banks: |
|
|
- In denars |
197,445 |
35,338 |
- Foreign currency |
365 |
49,997 |
- Monetary assets in treasury |
71 |
123 |
|
|
|
|
197,881 |
85,458 |
11. CAPITAL AND RESERVES
a. Equity capital
The share capital of the Company is 31,738,878 thousand denars and is divided into 31,738,878 ordinary shares, with a nominal value of 1,000 denars per share. As of December 31, 2015 and 2014, the structure of the Company's core capital according to the Report of the Central Securities Depository is as follows:
|
% structure |
In thousand denars |
||
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Government of 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 the Macedonian accounting regulations from previous years, the revaluation of real estate, plant and equipment was calculated on the basis of published indices of prices of industrial products. These coefficients influenced the increase in the recorded real estate balances, the plants and the equipment, and the effect of them influenced the creation of the revaluation reserves.
c. Mandatory reserve
In accordance with the local legislation, the Company is obliged to allocate compulsory reserve every year, which is formed by taking 5% of the net profit. Separation is made while the reserve does not reach an amount equal to one-tenth of the core capital. Until the statutory minimum is reached, this reserve can only be used to cover the loss, and when exceeding the minimum prescribed, the excess can be used to pay dividends.
d. Other capital
The Company has a special reserve that can be used to cover losses and other purposes, such as: risk insurance of employees, retirement and payment of remuneration over the established amount, charity; death of a worker or family member; severe consequences caused by natural disasters, long sick leave and severe disability or disease problems, funeral expenses, professional improvement and sponsorship.
The manner of creation, investment, organization and use, the amount of funds, as well as the plan and program of using the special reserve are determined by the Shareholders Assembly of the Company with a special act.
12. CLAIMS FROM BUYERS AND OTHER CLAIMS
|
In thousand denars |
|
|
31 December 2015 |
31 December 2014 |
|
|
|
Customer orders - regular |
|
|
Claims from buyers in the country |
3,269,788 |
3,134,156 |
Foreign trade receivables |
4,234 |
4,238 |
|
3,274,022 |
3,138,394 |
Decreased for: Impairment losses (Note 12) |
(528,407) |
(306,884) |
|
2,745,615 |
2,831,510 |
|
|
|
Customer Claims-division balance |
|
|
Current part of claims of public institutions after concluded agreement |
755,840 |
749,275 |
Request from EVN Macedonia AD Skopje for non-signed agreements with public institutions |
73,357 |
73,527 |
|
829,197 |
822,802 |
Decreased for: Impairment losses (Note 12) |
(713,850) |
(510,703) |
|
115,347 |
312,099 |
|
|
|
Customer claims - TOTAL |
4,103,219 |
3,961,196 |
Decreased for: Impairment losses |
(1,242,257) |
(817,587) |
|
2,860,962 |
3,143,609 |
|
|
|
Other receivables |
|
|
Claims from subsidiaries |
66,695 |
114,603 |
Decreased for: impairment losses |
(581) |
- |
|
66,114 |
114,603 |
|
|
|
Interest payments |
1,052,987 |
1,117,782 |
Decreased for: Impairment losses (Note 12) |
(1,050,537) |
(1,033,380) |
|
2,450 |
84,402 |
|
|
|
Credit claims from IBRD |
48,257 |
78,933 |
Unbalanced claims from internal relations (transactions between organizational units) |
- |
- |
Claims based on loans granted to other domestic legal entities |
8,556 |
48,560 |
Claims from employees |
3,200 |
3,239 |
Receivables from insurance companies |
- |
- |
Value added tax receivables |
- |
- |
Claims for a subscription tax |
- |
41,919 |
Other |
90 |
|
|
60,103 |
172,651 |
Decreased for: Impairment losses (Note 12) |
(8,556) |
(8,556) |
|
51,547 |
164,095 |
|
|
|
|
2,981,073 |
3,506,709 |
13. OBLIGATIONS TOWASRDS SUPPLIERS AND OTHER LIABILITIES
|
In thousands of denars |
|
|
31 December 2015 |
31 December 2014 |
|
|
|
Suppliers: |
|
|
Domestic |
2,507,775 |
3,194,692 |
Foreign |
11,064 |
85,124 |
2,518,839 |
3,279,816 |
|
|
|
|
Other Liabilities: |
|
|
Liabilities to subsidiaries |
202,312 |
215,959 |
Wage Liabilities |
166,331 |
156,190 |
VAT liabilities |
134,670 |
56,423 |
Income tax liabilities |
98,233 |
- |
Liabilities for contributions and payroll taxes |
92,286 |
88,022 |
Other obligations towards employees |
11,868 |
62,851 |
Liabilities for interest |
26,252 |
26,252 |
Liabilities for leasing contracts |
- |
- |
Obligations under the collective agreement |
6 |
1,329 |
Other |
37,962 |
34,972 |
769,920 |
641,998 |
|
Pre-calculated costs: |
|
|
Calculated annuities per loan from IBRD |
918 |
24,923 |
Pre-calculated costs for open letter of credit for the purchase of equipment |
140,624 |
347,999 |
Other |
1,264 |
2,715 |
142,806 |
375,637 |
|
Deferred revenue on the basis of foreclosed claims (Note 12) |
- |
- |
3,431,565 |
4,297,451 |
|