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