The losses of the state-owned company “Mini Maritsa-Istok” are escalating at an alarming rate due to decreased operations and a decline in coal sales, according to a report on the company’s performance in the second quarter of 2024.
From January to June, the company generated 116 million leva in operating income, a significant drop from 242 million leva during the same period in 2023. This has resulted in a loss of 75.9 million leva, compared to a loss of 51.4 million leva for the same timeframe last year.
The figures reveal that for every 1.5 leva earned, the company incurs a loss of 1 lev, indicating that without state support or substantial reforms its viability is in jeopardy. Notably, personnel expenses are exceeding the company’s total revenue, with 149.5 million leva allocated for salaries in the first half of the year, overshadowing the 116 million leva in revenue generated.
Mini Maritsa-Istok is a state-owned coal mining company in Bulgaria, located in the Maritsa basin, and is one of the largest producers of lignite coal in the country, primarily supplying thermal power plants for electricity generation. Established in the mid-20th century, it has recently faced significant financial challenges. As Bulgaria transitions towards renewable energy sources, the company’s sustainability is in question, highlighting the need for reforms and government support to adapt to the changing energy landscape while continuing to play a crucial role in national energy security and local employment. (Novinite)
