Georgia's leading electricity provider reveals revenue losses for 2020

Energy Materials 28 May 2021 14:52
Baku, Azerbaijan Trend News Agency Tamilla Mammadova
Georgia's leading electricity provider reveals revenue losses for 2020

Telasi, the leading supplier of electricity in the capital of Georgia has published its financial report for 2020, Trend reports.

The report shows that the company's financial situation has deteriorated and that the company ended 2020 with a loss of 72.9 million lari ($22.1 million).

For comparison, in 2019, the company had a profit of 14 million lari ($4.2 million).

According to a Telasi report, due to the impact of COVID-19 pandemic, the volume of electricity sold by the company last year fell by 11 percent to 2.47 billion kilowatt-hours. As a result, the company's revenue from electricity distribution fell by 9 percent to 411 million lari ($124.9 million).

Despite reducing the volume of electricity sold, "Telasi" increased the electricity purchase tariff by 9.8 percent to 397 million lari ($120.6 million). This circumstance became one of the main factors affecting the overall year losses for the company.

Telasi's 2020 revenues:

- Income from household subscribers - 163.6 million lari ($49.7 million), a decrease of 0.2 percent over the previous year;

- Electricity sales for commercial and industrial customers - 219.1 million lari ($66.6 million), a decrease of 15 percent over the previous year;

- Sale of electricity to the public sector - 22.4 million lari ($6.8 million).

In addition to the $411 million in electricity sales, the company also received 21 million lari ($6.3 million) in revenue from GWP and the Tbilisi Cleaning Service for billing (accounting) services last year. In total, the company's operating income amounted to 432 million lari ($131.3 million). Still, this amount was not enough to fully cover the company's costs, due to which Telasi ended the 2020 year with a loss.

In addition to the $397 million spent on electricity purchase and distribution, the company paid 59.2 million lari ($17.9 million) in salaries in 2020. In addition, depreciation and amortization expenses amounted to 15 million lari ($4.5 million), while taxes amounted to 5 million lari ($1.5 million).

The company also spent 22 million lari ($6.6 million) on other expenses, and financial expenses amounted to 11 million lari ($3.3 million).

Due to these factors, in 2020, the company lost 72.9 million lari ($22.1 million).