د . إAEDSRر . س

Electrogas Consortium Reports Over €19 Million Profit After Years of Losses

Article Featured Image

Updated at 17.20 with Gasan Enterprises response

Electrogas, the consortium that supplies gas and electricity to Enemalta, Malta’s state-owned energy provider, has announced its first multi-million profit since its inception.

The company’s 2021 accounts, published last month, reveal a profit of €19.1 million, a significant turnaround from the €56 million loss incurred in 2020.

This positive result comes after consecutive years of losses, including €15 million in 2019, €32 million in 2018, and €23 million in 2017.

According to the company directors’ annual report, Electrogas anticipates further improvements in its financial performance and operating cash flow in the coming years, based on the most recent financial projections.

One contributing factor to Electrogas’s improved financial position is its gas supply arrangement with Socar, Azerbaijan’s state-owned energy company. In 2021, Electrogas purchased €136 million worth of gas from Socar, replacing a previous five-year fixed-price agreement that ended the previous year.

While Electrogas now faces exposure to variable market prices, the costs of gas purchases are passed on to Enemalta, offsetting the risk.

In a new statement provided to Lovin Malta, Gasan Enterprises noted that the company has never made a profit through this enterprise.

“With reference to the financial position of ElectroGas Malta Ltd. as published in the financial statements for the year 2021, whilst a profit was registered, the company is still in a substantial negative equity position due to past losses. Gasan Enterprises Ltd. has not profited from this venture and reaffirms its commitment not to profit in any way from this investment as declared publicly in a statement dated 23rd September 2020”. 

Despite the positive financial results, Electrogas’s operations have come under scrutiny in recent times. The Maltese government’s deal with the consortium has faced criticism, with parliament’s public spending watchdog closely examining the agreement.

PN Justice Spokesperson Karol Aquilina called out Electrogas shareholder Gasan Enterprises who, in a statement three years ago, had said that they didn’t want to have anything to do with this project anymore and had forsworn any profits from the company.

Aquilina claims that it doesn’t seem that the Gasan group has sold or divested any of its shares and that they seem to be in for a windfall of €2.24 million on their investment of 11.72% of total shares in the Electrogas group.

Aquilina goes on to say that Gasan Enterprises should stay true to their word and pass on these earnings to the Maltese and Gozitan people.

Former Electrogas director Yorgen Fenech, who has been implicated in the assassination of journalist Daphne Caruana Galizia, was summoned to testify before the parliamentary committee.

However, his testimony has been postponed due to pending criminal charges against him.

Fenech’s alleged involvement in the Electrogas project has been identified as a potential motive for Caruana Galizia’s murder, although he denies any connection to the crime.

Leaked emails also suggest that Fenech’s offshore company planned to make substantial payments to Panama-based companies owned by former government officials Konrad Mizzi and Keith Schembri.

Both Mizzi and Schembri deny any wrongdoing despite being banned from travelling to the United States in December 2021 due to suspicions of corruption related to the power station deal.

The Electrogas consortium has seen changes in its board as well. Former director Paul Apap Bologna resigned in 2021 after his ownership of a company similar to Fenech’s came to light through reporting by the Times of Malta.

A magisterial inquiry into Fenech’s company, 17 Black, is currently ongoing.

As Electrogas celebrates its first profitable year, it faces the challenge of restoring public trust amid allegations of corruption and ongoing legal investigations.

What do you make of this recent development?

READ NEXT: Bathers Advised To Avoid Pembroke Area Due To Sewage Overflow

Mario enjoys reading, cooking, the art of film and travelling. A man of this world, he believes that the earth needs more equitable distribution of assets and resources - and way more seafood platters. Contact him via email at [email protected]

You may also love

View All