The HEP national electricity provider paid HRK 840.6 million of last year's annual profit, into the state budget, HEP said on Wednesday following a decision by its general assembly on the distribution of its 2020 profit.

The decision on this contribution to the budget was made based on a government decision on the amount, method and deadline for state-owned companies, who are obliged to pay 60% of their 2020 profit after tax into the state budget.

HEP said in a press release that despite the unfavourable business circumstances in 2020, it had generated a profit amounting to HRK 1.4 billion. Based on the assembly’s decision, which was held at the end of August, HRK 70 million will be set aside as legal reserves, while HEP will retain HRK 490.3 million of its profit and as mentioned earlier, HRK 840.6 million will go to the state budget.

HEP noted some of its investments during 2021, highlighting the Kosinj hydroelectric project which the government declared a strategic investment project n July. Together with the Senj 2 project, these are the two largest investment projects for HEP since Croatia’s independence. The Senj 2 project is valued at HRK 3.4 billion and will produce 412 megawatts (MW) of electricity into the grid.

(€1 = HRK 7.5)