Czech EP Energy releases Q3 2015 results

EP Energy has published its results to date for the first three quarters of 2015. EBITDA rose year on year by 8.5% over the period to a total of EUR 305 million (approximately CZK 8.32 billion). The decline mainly affected its German coal mining segment.

EP Energy, which is part of Energetický a průmyslový holding, increased its earnings before depreciation by 8.5% (from EUR 281 million last year) to EUR 305 million. The increase was primarily driven by higher revenues in the electricity and gas distribution and supply segment.

The most significant share of EBITDA in the first nine months of 2015 came from the distribution and supply segment. The second-largest contribution came from electricity and heat generation, which fell year on year by 9.1% but still accounted for 30.2% of total EBITDA.

The renewable energy segment also recorded growth, although it accounted for only 1.2% of total EBITDA in 2015. However, this increase was not due to additional installed capacity, but to better wind power generation conditions and more efficient operation of biogas plants.

Like Czech utility ČEZ, EP Energy will also receive a partial refund of gift tax on emission allowances. According to the investor report, this amounts to approximately EUR 11 million (approximately CZK 300 million).

Among other things, the report identifies entry into the Hungarian heat generation market as a significant event. EP Energy is acquiring three gas-fired combined heat and power plants, which cover nearly 60% of heat demand in Budapest and 3% of Hungarian electricity demand.

Decline in EP Energy's German coal segment

EBITDA in EP Energy's coal segment fell by 24.1% in the first nine months of this year. This was primarily due to lower coal offtake by its two main customers, the Lippendorf and Schkopau power plants. These plants were used less, mainly because of exceptionally windy conditions in Germany and sufficient output from renewable energy sources.