95
94
Annual Financial Statements
3.11 Significant information
During the reporting period, the Group proceed to the following:
DEPA and Gazprom Agreement
On 25/2/2014, the Ministry of Environment, Energy and Climate
Change announced the agreement between DEPA and Gazprom for
the retroactive price discount for gas supplied by the latter, a discount
that will be passed to consumers.
The discount amounted to 15% over current prices that was valid until
25/02/2014 and had a retrospective effect. The amount of discount for
the Group was
€
16,5 mio for the period 1/7 – 31/12/2013.
The total discount is recorded in the Group’s results for the period
01.01.2014 – 31.12.2014.
Law 4254/07.04.2014
The law 4254/07.04.2014 “Measures of support and development of
Greek Economy referred to L. 4046/2012 and other provisions” defined
arrangements in order to ensure the viability of the renewable energy
sources (RES) support mechanism, aimed at the consolidation of the
special account referred to in article 40 of law 2773/1999. In addition,
the recommended settings are intended to help reduce the cost of
electricity for final consumers and the national economy. More specifi-
cally, the present law consists of three main axes: (a) price adjustment
to converge, as far as possible, the benefits from the RES support
mechanism at around the same level for all categories of producers,
therefore being an adjustment that aims, as far as possible, on similar
yields between the several types of investment, b) investor protection
taking into account existing financing agreements and c) new tariffs to
compensate producers of electricity from RES and through RES and
high efficiency Cogeneration Plants (HeCoGen), compatible with the
requirements of the national electrical system, which will contribute to
reduction of energy costs while at the same time ensuring reasonable
returns.
In particular, Sub Paragraph IC 3 of the said law includes the following:
1. Within two (2) months from the entry into force of this law, the RES/
HeCoGen producers shall issue a credit note to provide discount:
a. 35% regarding energy from photovoltaic plants (except in cases of
the “special program of development of photovoltaic systems in build-
ings”) and
b. 10% regarding energy from other RES and HeCoGens, in both
cases (a) and (b) calculated on the total value of energy sold in 2013.
2. On expiry of the period referred to in paragraph 1 and until issuance
and delivery of the credit note referred to in this paragraph, the obliga-
tion of LAGIE for the Interconnected System and HEDNO for the Non
Interconnected System, to pay to RES and HeCoGens producers the
price for the volume of electricity delivered from the month of entry
into force of said Law and onwards, shall be suspended. The General
Secretariat of Public Revenues is hereby authorized to determine by
decision the details regarding the tax treatment of the transaction de-
scribed in paragraph 1 and the present.
3. For RES and HeCoGen projects that issue the credit note pursuant
to para. 1 the excise tax of L. 4093/2012, as amended and in force, is
recalculated on the reduced, after the credit note discount, proceeds
from the sale of energy for the reference year 2013.
The impact on the Group’s results for the
period 1/1/2014-31/03/2014 amounted to
€
3,2mio .
METKA’s new construction contracts &
completion of Power Plant in Turkey
METKA S.A., a subsidiary company of MY-
TILINEOS Group, announced on 13.2.2014
that its Turkish subsidiary, Power Projects
Sanayi
İ
n
ş
aat Ticaret Limited
Ş
irketi (Power
Projects Limited), in consortium with Gen-
eral Electric, has signed a new contract
with Société Algérienne de Production de
l’Electricité (SPE Spa). This is METKA’s fifth
major project in Algeria, and emphasizes
the company’s commitment to further de-
velop its presence in one of the region’s
most important growth markets. The pro-
ject concerns the engineering, procure-
ment, installation and commissioning of
eight (8) mobile gas turbine power genera-
tion units with a total output of 179,72 MW
at site conditions, to be installed at three (3)
sites in Algeria. The total contract value for
Power Projects Limited is US$ 66.085.842.
The project will be carried out on a fast-
track schedule, with commercial operation
in the first half of 2014.
Furthermore, METKA S.A. announced on
11.03.2014 its appointment as the provi-
sional contractor for the project “Construc-
tion of remaining infrastructure, permanent
way, signalling-telecommanding, telecom-
munications and electrical engineering
works for the tunnel facilities for the new
railway line Kiato-Rododafni” (Tender no.
715), following the decision of the Board of
Directors of ERGA OSE S.A., in the context
of the open call for tender.The total budget
of the projects amounts to
€
273,000,000
and is co-funded by the European Region-
al Development Fund (ERDF), under Prior-
ity Axis 2 of the Operational Programme
“Accessibility Improvement” of the Greek
NSRF 2007-2013, and is scheduled for im-
plementation over a period of 24 months
following the contract award date.For the
implementation of the project, METKA will
collaborate with the international company
THALES, global leader in the field of signal-
ling and telecommanding, as well as with
XANTHAKIS S.A., a Greek company spe-
cialised in railway superstructure works.
The Kiato-Rododafni railway line is part of the larger construc-
tion project for the new double railway line from Athens (SKA) to
Patras and is considered an infrastructure project of significant
importance, since with its implementation it will be possible
to connect the Peloponnese with the modern railway network
of Athens. The New Double High-Speed Railway Line KIATO-
PATRAS is the extension of the new ATHENS - KORINTHOS
- PATRAS New Double High-Speed Railway Line, which will link
the Greek capital to Patras, the third largest economic centre of
the country.
METKA announced on 24.04.2014 the successful completion of
the RWE/TURCAS 800MW power plant in Turkey.
Following the successful introduction of the Denizli CCPP
800MW plant into commercial operation, already since June
2013 and resolution of all pending commercial and technical is-
sues, METKA also announced that the Provisional Acceptance
Certificate (PAC) has been signed.
The turn-key EPC contract has been carried out by METKA S.A.
and its fully owned Turkish subsidiary, Power Projects Ltd. The
owner of the project is the joint venture RWE/Turcas Guney Ele-
ktrik Uretim A.S.
The Denizli CCPP is the second after the Samsun CCPP state-
of-the-art natural gas fired power plant of this size that METKA
has built in Turkey on behalf of international investors. Both
Plants combine the high efficiency and operational flexibility
needed to serve effectively the Turkish electricity market.
With the 23/11/2011 contract METKA undertook on behalf of
the Ministry of Electricity Republic of Iraq, the engineering,
installation and commissioning of an open cycle gas turbine
power plant of 1250 ΜW, with General Electric turbines, in the
area Basra of South Iraq. Further to the client’s call and in or-
der to optimize the unit’s flexibility, ΜΕΤΚΑ undertook with the
12/06/2014 contract the engineering, installation and commis-
sioning of equipment which will allow the Unit to operate also
with HFO (Heavy Fuel Oil). The contractual value is $166,5 mil-
lion.
Significant information for other subsidiary companies and
Parent Company
Οn 31/03/2014, subsidiary company of MYTILINEOS Group,
KORINTHOS POWER S.A. has issued a
€
155,0 mio long-term
bond loan in order to refinance the existing ,since 20/07/2010,
€
157.5 mio short-term bond loan. On 01/04/2014, the amount of
€
155,0 mio was drawn and contributed to the fully repayment of
the short-term
€
157.5 mio loan.
On 29/04/2014, 100% subsidiary company of MYTILINEOS
Group, PROTERGIA S.A., announced its entry in the electricity
retail market with a view to supplying electricity to businesses,
professionals and households. Protergia
is the largest independent electricity pro-
ducer in Greece. The company’s portfolio
of energy assets exceeds 1,200 MW of
installed capacity, corresponding to more
than 10% of the country’s total electricity
production.
MYTILINEOS HOLDINGS S.A. announces
that the Company’s Board of Directors,
pursuant to a relevant resolution adopt-
ed on 29.05.2014, resolved to initiate the
procedure for the merger by absorption
of its wholly-owned subsidiary THORIKI
– PRODUCTION AND TRADE OF MET-
ALS INDUSTRIAL S.A. with the Company.
The aforementioned resolution also set
31.05.2014 as the Transformation Balance
Sheet date and appointed the independ-
ent auditors to assess the book value
of the absorbed company’s assets. The
transformation will take place in accord-
ance with the provisions of articles 67-68
of C.K. 2190/1920 and articles 1-5 of Law
2166/1993.
On 17/10/2014, MYTILINEOS HOLDINGS
S.A. announces that the merger by ab-
sorption of the Company’s wholly-owned
subsidiary under the business name
“THORIKI – PRODUCTION AND TRADE
OF METALS INDUSTRIAL S.A.” with the
Company was approved by Decision no.
K2-4873/14.10.2014 of the Deputy Minis-
ter for Development and Competitiveness,
which was registered with the General
Commercial Register (GEMI) under Regis-
tration No. 260475 on 14.10.2014.
3.12 Financial instruments
Financial instrument is any contract that
creates a financial asset in an enterprise
and a financial liability or Equity instrument
in another.
The financial instruments of the Group are
classified in the following categories ac-
cording to the substance of the contract
and the purpose for which they were pur-
chased.
