MAT analyzes EPS: Expenditures twice higher than revenues, salaries 50% above average
In 2021, Elektroprivreda Srbije (EPS) rapidly worsened all of its balance positions compared to 2020, so share in gross domestic product (GDP) was reduced from 2.23% to 1.38%.
This was published in the latest issue of the magazine Makroekonomske analize i trendovi (Macroeconomic Analyses and Trends – MAT).
In MAT’s analysis “Effects of EPS’ business in 2021: Facing the Consequences of Lack of Restructuring”, by authors Edvard Jakopin and Nataša Čokorilo, it is stated that in that period, EPS reduced gross value added (GVA) by 35%.
Total business expenditures in 2021, as it is stated, were twice higher than total business revenues. capital was reduced by 7.4% and loss amounted to close to 150 million euros.
EPS’s liabilities in 2021 reached 3 billion euros, and cumulative loss EUR 1.7 billion.
EPS’s results started deteriorating in 2018 and, with the exception of the pandemic year 2020, inefficient business operation, burdened by numerous structural problems, has been continuously deepening.
“Due to diminished production in the fourth quarter of 2021, the rise in the prices of the import of energy products due to the global energy crisis in the first quarter of 2022, and consequently additional indebtedness, the company has been operating in the negative zone,” the text reads.
It is added that the losses in the fourth quarter of 2021 (117 million euros) and the first quarter of 2022 cumulatively amounted to 253 million euros. In 2021, total revenues increased by 15 percent in real terms, while total expenditures increased by 29 percent. Business revenues grew twice more slowly in 2021 compared to business expenditure growth, 17 percent versus 33 percent.
„The cumulative loss was constantly growing, in real terms per year at a rate of 6.1 percent from 2015-2019, while in 2020, after the separation of the public company Elektrodistribucija, it grew in real terms by 38.5 percent, from 1.1 billion euros to 1.5 billion euros”, it was stated in the analysis.