Enemalta has reportedly made losses in the region of €30 million, with a credits rating report allegedly giving a negative outlook for the company. 

The Times of Malta has revealed that an unpublished credit rating report by S&P Global has indicated a significant loss, the first since the company started making profits in 2015.

An Enemalta spokesperson did not comment on the figures, however, attributed the losses to “extraordinary costs”  brought on by a decrease in demand and issues with the Malta-Sicily interconnector. The company last published accounts for the year 2018. Its last recorded accounts showed a profit of €7 million, down from the €44 million it recorded in 2016.

S&P Global attributes the loss to the pandemic and a drop in business activity and demand. It believes that it could reach pre-pandemic levels in 2022. Enemalta’s earnings dropped from €64.2 million in 2019 to €16.8 million in 2020. 

The company did spend €15 million on repairing the interconnector, however, it has already recovered €11 million. Meanwhile, the cost of sales increased by €10.9 million.

Enemalta is tied to both Shanghai Electric Power and the Electrogas project. SEP is a part-owner of Enemalta, while Enemalta is bound to buy electricity from Electrogas. A spokesperson said that issues with the interconnector meant it was more dependent on buying electricity from Electrogas.

It is also linked to allegedly corrupt deals, namely its Yorgen Fenech-linked purchase of a wind farm in Montenegro.