Results

Main financial highlights

In 2014, Slovenské elektrárne recorded a net income of 170 million euro and earnings before interest, income tax, depreciation and amortization (EBITDA) of 531 million euro. The EBITDA result (-25% vs. 2013) was affected by continuing pressure on market prices with electricity (price down by 20% vs. 2013) and lower production mainly in hydro power plants (about -10% vs. 2013). These negative effects were partially offset by continuous efficiency improvement in external costs, both in power plants and in staff functions and in personal costs thanks to the optimization of organization.

Another significant positive factor supporting the profitability of the Company is the continuous focus on cash optimization driven by the achievement of performance excellence initiatives launched in 2008.

Considering the relevant impact of investments (707 million euro), a net indebtedness in the amount of 623 million euro, in comparison with 396 million euro registered in 2013, can be considered a positive result of cash-flow management. A significant contribution to cash-flow enhancement also came from selected initiatives on net working capital optimization, namely better management of receivable and payable payment terms.

The company will continue to foster such a good performance in coming years in order to sustain the extensive investment plan in the years 2015-2019. The plan of Slovenské elektrárne assumes investments worth almost 2.2 billion euro. The most important project is undoubtedly the completion of Units 3 and 4 of the Mochovce Nuclear Power Plant. Several strategic milestones were achieved in 2014: completed the installations of cabinets and panels of Unit 3 Main Control System (DCS) in control rooms, completed 1st phase of 6 kV busbars commissioning, completed the licensing process of the Full Scope Simulator for training of future operators, etc.

In the energy market, Slovenské elektrárne is exploiting new opportunities in the final customer segment in the CENTREL region. Slovenské elektrárne Predaj, a subsidiary established in Slovakia, sold 3 TWh in 2014 and the branches in the Czech Republic and Poland sold a total of 3 TWh. Slovenské elektrárne expects to further increase its presence in these markets and to develop new energy efficiency services to final customers.

Financial Risk Insurance Companies with Capital Interest Auditor’s report Selected data from individual and consolidated financial statement

Electricity and Heat Production

Installed capacity (MW)
2010
2011
2012
2013
2014
Slovenské elektrárne
4,870.70
4,992.60
4,992.60
4,992.60
4,520.92
HPPs Gabčíkovo, Čuňovo, Mošoň a S VII and Nuclear unit B2 of Nuclear and Decommissioning Company (JAVYS, a.s.)
746.54
746.54
746.54
746.54
746.54
TOTAL
5,617.24
5,739.14
5,739.14
5,739.14
5,267.46
Gross electricity production (GWh)
2010
2011
2012
2013
2014
Slovenské elektrárne
20,089
20,024
19,786
20,224
19,972
HPPs Gabčíkovo, Čuňovo, Mošoň a S VII and Nuclear unit B2 of Nuclear and Decommissioning Company (JAVYS, a.s.)
2,375
1,910
2,459
2,619
2,043
TOTAL
22,463
21,934
22,245
22,843
22,015
Nuclear power plants Thermal power plants Hydro-electric power plants Photovoltaic power plants
Development of installed capacity of Slovenské elektrárne (MW)
Share of power plant types in installed capacity of Slovenské elektrárne

Electricity and Heat Production and Supply

In 2014, Slovenské elektrárne produced electricity in the volume of 22 015 GWh (year –on-year index 0.964) with its own production sources and the hydro power plants Gabčíkovo, Malé Gabčíkovo, Čunovo and Mošoň operated on the contract basis. In addition to electricity, the production sources provided ancillary services thus contributing to the stability of the Electricity Supply System of the Slovak Republic.

Total electricity production in Slovakia reached 27 254 GWh, while the gross consumption in - 28 690 GWh (including pumping for pumped-storage hydroelectricity). Slovenské elektrárne is a major electricity producing company in Slovakia with an 80.8% share in electricity production in the territory of the Slovak Republic.

The company maintains a large share of production free of greenhouse gas emissions. In 2014 Slovenské elektrárne supplied 20 215 GWh of electricity from its own sources, including the Gabčíkovo Hydro power plant. Nearly 92% of electricity supplies were without greenhouse gas emissions.

Nuclear Power Plants

The best indicator of operational reliability is the power plant efficiency – the unit capability factor UCF of the nuclear units reaching 92.54% in 2014, and the unplanned capability loss factor UCLF amounting to 0.75%. To compare it with the international standards, the best quartile for pressurised water reactor units within the world scale of the World Association of Nuclear Operators (WANO) is 90.71% for UCF and 0.89% for UCLF (for the period 2011-2013). Read more

Hydro Power Plants

A rainy summer and autumn though eventually ensured a production of 2 007 GWh, the best value in the past 4 years. Read more

Thermal Power Plants

The Nováky power plant fulfilled the general economic interest on the level of 102% and produced electricity in a volume of 1 743 GWh. Compared to the previous years, the quality of coal supplied has slightly improved and in order to attain the agreed volume of coal burnt, in the close of the year the production was increased against the original plan.

The Vojany power plant is operated on a commercial basis and is an important provider of secondary active power regulation and voltage regulation. Despite the continuous fall in prices on the spot market, thanks to the optimal deployment of the Vojany plant, the production plan could be fulfilled. Electricity produced totalled 473 GWh. An important step was the start of co-firing of category A and B coal, initially intended for the shut down units 1 and 2, in the fluidised bed combustors of units 5 and 6.

Emission-free sources formed a 92% share in electricity production, thanks mainly to the nuclear and hydro power plants. Vojany power plant, by co-firing wood chips, contributed a further 47 GWh of clean electricity. Likewise Nováky power plant provided a small share of green energy by co-firing wood chips in the fluidised bed combustor at Nováky power plant A, contributing a 2.7 GWh. The Vojany and Mochovce photovoltaic power plants supplied the standard 1.9 GWh.

Heat Production

Development of gross electricity production (GWh)
Share in electricity supplies of the sources operated by Slovenské elektrárne, including Gabčíkovo, Čunovo, Mošoň hydropower plants (%)
Share in electricity supplies from own sources of Slovenské elektrárne (%)
Electricity Pricing and Structure

Trading in Electricity, Heat and Ancillary Services

Regulatory Framework for Operation in the Electricity and Heat Market Commercial Risk Trading in Ancillary Services and Regulation Electricity

Slovenské elektrárne in the Current Market Environment

The installed capacity of wind power plants grew in Germany again this year, reaching a capacity of 35.7 GW and representing an increase of more than 3 GW. On 12 December the capacity of wind power plants reached its record high of 29.7 GW. There was a slight slowdown of solar sources, about 2.4 GW, reaching a total capacity of 38.1 GW. Production of renewable energy in Germany recorded a new record when the wind and solar power plants turned out an output of 37.8 GW (14 April). Despite the low fuel prices the production of electricity from natural gas reported in Germany a further decrease of 18.4% against the previous year. By contrast, production of solar power plants increased by 7.4%.

The downward trend in electricity prices continued also in 2014 when the Slovak wholesale price fell by 10% on a year-on-year basis. The plunge in fuel prices, persistent low prices of emission permits, stagnation in electricity demand and growing production from renewable sources pushed electricity prices down to their new low. The Slovak electricity market recorded the lowest prices of the last decade, when in April the electricity price fell to 33.8 euro/MWh.

Despite the adverse conditions Slovenské elektrárne sustained the quality and volume of electricity production and supply, and thus confirmed its dominant position in the Slovak and regional market. The strategic position of Slovakia is one of the important factors for electricity trade and transmission to Hungary and to the Balkans, a region with higher price levels. Since Romania’s connection to the market coupling, the importance of the local market, and of Slovenské elektrárne, in the region has grown further.

The Company is aware of its position as the leading trader in the domestic electricity market, and for this reason it is trying to increase the market liquidity and transparency of the Slovak market through trading platforms. Thus, the Slovak market should reflect real market conditions and become even more attractive to all market players.

Sales Policy in the Domestic Market Market Price in Slovakia Electricity trading Strategy in the Region

Heat Trading

Slovenské elektrárne produced 781 GWh and sold 611 GWh of heat in 2014, achieving revenues of 19.65 million euro. Heat production is mainly based on the combined production of electricity and heat and distributed via the central heat supply systems.

Share of plants in Slovenské elektrárne’s heat sales (GWh)
Heat Sales

Pursuant to the quality standards for heat supply, heat was sold continually based on customers’ needs and requirements. Heat supplies were mainly provided using hot water for heating and preparation of hot service water for households and non-residential structures. The Nováky power plant delivered 61% of heat in the form of hot water and 39% of heat in the form of steam for technological purposes. Read more

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