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Facts & figures
Efficiency, profitability and financial management
Earnings
The operating profit of the Business Group has increased by 87% on the Year 2021 figure primarily because of the higher production volume and increasing electricity prices in the world market.
Profit before tax of the Business Group has increased by 105%, and profit after tax has been 100% above those figures of the previous year. Like in previous years, the foundation of our reliable performance has been the availability of Csepel II Station, which is an outstanding high availability even by world-class standards.
Profitability
The owners of ALPIQ Csepel Kft invested USD 260 million into building Csepel II Station in the period between 1997 and 2000. The Power Station started operation on 1 November 2000 to supply MVM and, through it, the public utility consumers.
Project return rates (ROA) are presented in the next graph:
In the period since the commissioning of the Power Station until 2018, return on assets (ROA) rate on gross value of assets of the Group had been around the level normal in business life. Profitability rates had been constantly reducing since 2009, but that tendency broke in 2012 when the provisions created for overhauls were used up. The reductions of the rate in 2013 and 2014 had been caused primarily by the unplanned depreciation accounted for tangible assets, but from 2015 on it was rising again, and since then it has permanently remained at a level above 6%. As the Option Contract had expired and the new commercial contracts had come into force, profitability significantly reduced from 2019 on. However, thanks to the situation that evolved in the energy market in 2022, profitability has again approached the level of 6%.
Production, sales and supply
Business Units within the ALPIQ Csepel Group have again reliably performed their contractual liabilities in 2022, providing excellent quality of services. Settlement with our customers and suppliers has been performed smoothly just like in previous years. Sales income from power generation and heat production has increased by HUF 154.9 billion on the 2021 figure because of the higher production volume and increasing electricity prices in the world market. The following figures reflect how factors that have a strong effect on sales revenue tendencies have changed since previous year:
| Sales revenue factors | 2020 | 2021 | 2022 | 2023 | |
| Generation (GWh) | 754 | 1 004 | 1 154 | 447 | |
| Heat production (TJ) | 903 418 | 948 731 | 840 133 | 754 273 | |
| CHP ratio (%) | 52% | 58% | 68% | 23% | |
| Availability (%) | 99.7% | 99.9% | 97.8% | 99.9% | |
| Forced outages (MW) | 1.3 | 0.3 | 7.3 | 0.2 | |
| Oil firing (%) | 0.1% | 0.0% | 0.0% | 0.0% | |
| Annual spot average price of Brent type crude oil (USD/Bbl) | 41.96 | 70.86 | 100.93 | 82.49 |
Cost management
Cost structure clearly shows that direct costs of generation still represent the bulk of the total costs of the Company. Due to higher production volume, fuel costs have also increased above the 2021 level primarily because the annual average price of gas has substantially gone up, by nearly 60% over the Year 2022. However, if we compare the purchase price that existed in December 2022, to the average purchase price of the year before, the increase was much more significant, nearly ten times higher. As production volumes have increased, direct variable costs of production have also gone up owing to a higher use of CO2 quotas, and the increase in contribution to water resources and other costs. The percentage of indirect costs in total costs has substantially reduced due to the significant increase in direct costs. Nominal costs of plant operation and maintenance, as well as other indirect costs, have remained around the 2021 level.
| Tendencies in cost structure (Excluding financial expenditures, provisions and associated transactions within the Group) | Cost percentage in total costs | |||
| 2021 | 2022 | 2023 | ||
| Fuel procurement | 70.0% | 87.1% | 66.9% | |
| Other direct, variable costs of production | 21.7% | 9.7% | 18.7% | |
| Other direct, fixed costs of production | 1.0% | 0.4% | 2.4% | |
| Direct costs of production, total | 92.6% | 97.1% | 88.0% | |
| Depreciation (without unplanned depreciation and value loss written back) | 2.3% | 0.9% | 2.9% | |
| Power Station operation and maintenance costs | 1.3% | 0.4% | 1.9% | |
| Personnel-type expenditures | 1.7% | 0.6% | 3.3% | |
| Power Station insurance | 0.4% | 0.2% | 0.9% | |
| Local taxes | 0.9% | 0.5% | 1.5% | |
| Other indirect costs | 0.8% | 0.3% | 1.6% | |
| Indirect costs, total | 7.4% | 2.9% | 12.1% | |
| GRANDTOTAL | 100.0% | 100.0% | 100.1% | |
Liquidity and financial position
Group finance position has been steady in 2022 with liabilities met in due time. The Company has successfully maintained its solvency, and has not been forced to introduce any such cost saving scheme that would have resulted in the termination of jobs or the reduction of production capacities.
Events after the close of balance sheet
No such significant event has occurred within the Business Group after the close of balance sheet which would have affected the 2022 statement.