Eurohold Bulgaria, one of the largest energy and financial group in CEE, posted an increase in its financial results in the first quarter due to improved profitability of its energy business and stable results from the insurance operations, shows the consolidated report of the company for the period.

In January-March Eurohold registered total revenues of nearly BGN 1.52 billion (EUR 777 million) and earnings before interest, taxes and depreciation (EBITDA) and the amount of BGN 326.5 million (EUR 167 million). The net financial result is approximately BGN 264 million (EUR 135 million).

The energy business, which operates under Electrohold brand, is improving its overall profitability despite falling prices on the free market compared to the first quarter of 2022. In March Electrohold signed a 10-year purchase power agreement with Yettel and CETIN Bulgaria for the supply of electricity from renewable sources. A major part of the consumption under this contract will be provided by the Verila solar power plant (124 MW), which is the largest so far in Bulgaria.

"Two years ago we took a big step in our new development strategy, entering the energy business, and it is already paying off. The activity of Electrohold is of the greatest importance to our performance. The vertical business model we have announced, which includes renewable energy generation, distribution, supply and trading of clean energy, is on the way. This creates solid opportunities for growth and fits perfectly into the EU's green transition strategy", commented Assen Minchev, CEO of Eurohold.

Outside of Romania Eurohold's insurance business, concentrated in Euroins Insurance Group AD (EIG), has been developing steadily. In March the license of the group's Romanian insurer was revoked by the local regulator.

Deducting the loss from ceased operations due to the case with Romania, the group ends 2022 with EBITDA in the amount of BGN 244.5 million (EUR 125 million) and a positive net financial result of nearly BGN 21.8 million (EUR 10.15 million), according to the consolidated audited report for the period. With its results in the first three months of 2023, Eurohold compensated for the accounting loss for the previous year.

"Concerning the insurance business, regardless of the regulatory shock we received in Romania, we will not deviate from the mission we have stood for all the years in this industry - to provide qualitative, reliable insurance services, for which our millions of customers in the region have always relied on us. We believe that with the support of our shareholders and partners we will overcome the adverse consequences of the development of the Romanian case, continue the process of diversifying our portfolio and achieve a good year", said Assen Minchev.