KEK exceeds all forecasts, 23m euros profit for 11 months

This public enterprise, in 2019, is closing by 23m euros in profit that marks a record 30% increase more than the previous year.

At the same time, it has increased capital investments to ensure security in electricity production and has also reduced operational spending.

Incomes realised for the reporting period, January 2019, have reached the amount of 166.9m euros, of this amount only by export of electricity has been realised 20m euros.

Thaci: All units have passed KEK Director Manager Najazi Thaci's projections have made it known that these results have been achieved thanks to a job and commitment in all generation units. 

This year we have realised the extraction of sweat over 11% compared to 2018. We have good results in coal extraction, where we've exceeded the plan by 3% or 6% by as much as compared to last year.

We have also created enough coal reserves in two warehouses that give us comfort so that by March of next year we do not have problems with coal supplies.

The Kosova A thermal power plant, even though it is with old equipment released in operation 60 years ago, has reached the record in production this year. It actually broke the 1988 record. It exceeded the annual plan of over 11%, while 6% exceeded the previous year.

We also have a good performance at the Kosova B thermal power plant, which has passed the previous plan for 2%, or 3% to more than in the previous year.

This production and this commitment of all of us has led to KEK this year being declared the largest taxpayers in Kosovo”. Thaci said.

Luka: Rare when a public enterprise increases revenues and reduces operational spending 

While outgoing Minister of Economic Development Valdrin Luka has suggested that KEK is one of the rare public companies that has increased revenues and had a good performance and has also lowered operational spending.

This shows that last year even though circulation has not increased operational spending. So this is rare in public enterprises. In public companies, we always have an increase in spending, an increase in employment, an increase in operational spending, but in 2019 KEK has done a good job managing it, increasing profits by 30% by 2018. It is also of Czech importance that KEK, with electricity production, has managed to export energy worth 20m euros. So the export of electricity has multiple profits for us as a country, so not only does it improve the trade balance, increases the export, but also for revenues to enter from outside, which directly affect local product growth. So as far as numbers are concerned, finance in general has had a satisfactory management in this year”, Minister Lu Lukas said.

He has also suggested that KEK must already make planning for large capital investments, such as opening the new mine, buying new escavors, as well as normally improving or regulating the thermoelectrics that should continue to become their rehabilitation.

“We are currently entering the Kosovo B rehabilitation phase, which is a 380m-euro investment, where 80 million are grants from the European Commission, which also requires investment and support, I believe from the Republic of Kosovo budget in order to make a good rehabilitation for the next 20 years”. Said Valdrin Luka ʹ Minister of the MZHE outreach”, Luka said.

On the other hand, KEK Board Chairman Faruk Hajrizi has confirmed that the results are obvious, and KEK this year is also the country's largest taxpayers.

There was a better performance. We are the company or super company in Kosovo because we have reached all limits in terms of production, even in other economic and financial aspects. Our policies will now focus on the renegotiation of staff, as we've had a deadlock over the years. Year after year we're making the staff rerun and we hope that in the coming years we will reap even greater results. We've also made big strategic planning on how the company to increase its profit to certain percentages, year-on-year we're making plans”, Hayriz said.

Unless commitment to ensuring the best energy supply, KEK has also become a very important partner for the Kosovo Tax Administration.

In this direction, Ilir Murtezaj Director of ATK has indicated that KEK as well as in the early years has continued to perform well in paying taxes.

“is one of the biggest taxpayers under the payment of internal taxes under the Kosovo Tax Administration. We've been cooperating in the tax field, but we're thinking and working towards exchanging information between KEK and

ATK with the aim of identifying all taxpayers who carry on economic activity and must be tax imposeors”. Murtezaj said.

O EK: KEK is taxpayer and lead employer 

While the leaders of the Kosovo Chamber of Economics (OEK) have high-valued KEK's results, they say for the first time a public company is a leader or makes it to the largest taxpayers' list in Kosovo.

“Berat Rukiqi, director of OEK, has shown that there have been continued meetings with the KEK management to express the needs of the business community in relation to various energy-related issues, including the opening of the market where KEK could have an important role. We are interested in working jointly on rehabilitation of workers both in the energy sector and other sectors that can benefit from the extraordinary resources of KEK's training centre. KEK's performance continues to translate into paying important contributions to the country, being like the public taxpayer leader, as the leading employer and normally us and the Economic Age of Kosovo, seeing the need to assess the contributions of companies, whether public or private, for the first time this year's KEK has been rewarded or given the price for the taxpayer of”, Rukiqi suggested.

Investments Over 400m Euros 

As for capital investments for the coming years, KEK managing director Njazi Thaci has indicated that the opening of the new mine is one of the most important projects. According to estimates made by a German company, the investment will go some 400m euros without including the share of the expropriations. This investment will provide coals for existing and new thermal power plants for the next 40 years.

“Even though we have paid all taxes to the state, we still have achieved an 11-month profit of around 23m euros. This profit gives us comfort to enter large capital investments in the opening of the new mine and technical monitoring equipment in order to ensure energy security for the next 40 years. In this direction we're also giving our particular focus to environmental projects where investments have started in green areas and also the major solar park construction project that will be the largest in the region”. Thaci said.