Annual report - HSE

per emission coupon with each sale of electricity from the abovementioned production
companies without simultaneous purchase of emission coupons with regard to emission
factor CO 2
/MWh. This applies also to the companies TEŠ and TET.
In 2011, the company HSE decided to partly protect itself against risks of change in the price
of emission coupons by adopting the Strategy of Trading with Emission Coupons in the
Period 2013-2020 and the Decision on Purchase of Emission Coupons for the Purposes
of Own Production after 2012. These measures stipulates that, in a certain period after
the sales of own electricity production in TEŠ and TET, the company has to buy a certain
share of emission coupons. As a result, in 2011 Agreements on Emission Coupon Portfolio
Management was signed with TEŠ and TET, which stipulate that the company HSE
manages the emission coupons of both companies and takes care of sufficient amount of
coupons to cover liabilities to the government.
Therefore, by the end of 2012 the company HSE purchased 1,740,462 emission coupons
that TEŠ and TET will use after 2012. The carrying amount of coupons totals EUR
20,763,198. With this acquisition, HSE hedged a portion of revenue from sales of TET and
TEŠ production in advance against fluctuation in price of emission coupons.
Disclosures of transactions with emission coupons are presented in Sections 4.5.8.1 (1)
Intangible assets, 4.5.8.2 (17) Net sales revenue and 4.5.8.2 (19) Costs of goods, materials
and services.
in €
Concluded standard call futures 2012 2011
For electricity 15,049,106 53,397,388
For emission coupons 16,919,000 0
TOTAL 31,968,106 53,397,388
4.5.8.8.6 Capital management
The main purpose of capital management is to ensure the best possible credit rating and
capital adequacy for the purposes of financing operations and investments. An adequate
volume of capital guarantees the company the trust of creditors and market, as well as
maintains the future development of activities.
The company monitors changes in equity using the financial leverage ratio, which is
calculated by dividing total net liabilities by total equity. Net liabilities of the company
include loans received and other financial liabilities less cash.
The ratio shows the relationship between the company’s debt and equity. The financial
leverage ratio at the end of 2012 was higher than in 2011, as a result of increased shortterm
debt. This increase was caused by the HSE’s bridge financing of Unit 6, as TEŠ could
not draw the long-term loans from EIB and EBRD by the end of the year, before obtaining
the government guarantee. In March 2013, TEŠ started to draw the EIB and EBRD longterm
loans and repaid all bridge loans from HSE, which allowed the latter to settle a part
of its liabilities from short-term loans. With drawing long-term loans, the liquidity crunch
of the HSE Group lessened.
in €
Capital management 2012 2011
Long-term financial liabilities 89,558,481 100,009,595
Short-term financial liabilities 233,694,331 80,108,197
Total financial liabilities 323,252,812 180,117,792
Total equity 988,423,184 970,128,945
Financial liabilities/equity 0.33 0.19
Net financial liability 320,052,318 161,914,660
Net debt/equity 0.32 0.17
Annual Report HSE 2012
4 Financial Report of the company HSE
157