hse group

2.6 SALES AND BUYERS
26
2.6.1 Electricity
In addition to the sales of electricity
produced in HSE Group production
units, the company’s financial performance
is also being improved by trading
with electricity generated from other
sources. Sales activities are therefore
synchronized with production and purchasing
activities with the purpose of
achieving an improved financial result
at a reasonable level of risk.
Long-term Contracts and Daily Market
The bulk of sales were generated
through long-term contracts.
We sold surpluses of electricity resulting
from increased water flow and the
additional electricity generated at times
when the market price exceeded production
costs, in daily markets.
ELECTRICITY SALES STRUCTURE FOR 2002
Foreign market
23%
Distribution
53%
Largest Buyers of
Electricity in 2002
• Elektro Ljubljana d.d.
• EGL AG Switzerland
• Elektro Maribor d.d.
• Elektro Celje d.d.
• Talum d.d.
• Elektro Primorska d.d.
• Slovenske æelezarne d.d.
• Elektro Gorenjska d.d.
2.6.2 Heat
The entire amount of heat generated
in 2002 amounting to 374
GWh was supplied to Komunalno
podjetje Velenje (Velenje utilities
company).
Sales Volume
In 2002 HSE sold 9,332 GWh of electricity
in the domestic and foreign markets.
Domestic market is also the company’s
most important one as 77% of
overall sales volume was generated in
Slovenia, of which 53% was sold to the
five power distribution companies,
23% to other direct consumers and 1
percent in the organized electricity
market (Borzen, EEX). 23% of sold
quantities were exported, mainly to
Italy. We successfully participated in
auctions for cross-border interruptible
transmission capacities for the export
of electricity to Italy, thereby building our
presence in the Italian market, which
represents the most profitable market
for HSE due to high prices of electricity.
Domestic
Domestic
market - others
organised
23%
market
1%
Net Sales Revenues Structure
Last year HSE generated total net
sales revenues of over SIT 91 billion,
of which just over 20% was
generated from sales abroad.
Electricity was by far the most
important in the structure of revenues
with 93 percent; ancillary
services contributed about 6 percent,
while heat made up for 1 percent
of total revenues.
NET SALES REVENUE STRUCTURE IN 2002
Heating power
1%
Ancillary services
6%
Electricity
93%