The state-owned Bulgarian Energy Holding (BEH) posted a pre-tax profit of 8.5 million levs ($6.0 million/4.3 million euro) in the first quarter of 2014, up 50% from the same period a year earlier.
Revenues dropped nearly 94% to 309,000 levs in January-March, the company's financial report posted on the finance ministry's website indicated. BEH attributed the decrease to a reduction of nearly 85% in revenues from its subsidiaries for provided services. However, this negative effect was offset by an increase in net financial income to 10.2 million levs, up 312% on the year. Gross financial income surged to 21.8 million levs, up 195.33%.
In order to improve the impaired liquidity of its subsidiary NEK, BEH has prepared a draft agreement for the consolidation of its debts into a single loan with a maturity of 10 years. The agreement is yet to be approved by the state energy regulator.
BEH incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.