Annual Financial Report for the period from1st of January to the 31st of December 2013
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Energy Sector
In 2014, the Energy sector is expected to continue its steady contribution to the Group’s financial results, as
all thermal plants constructed during the previous years are now in commercial operation. The combination
of reduced demand and increased production capacity, particularly so from RES plants, is expected to force
gas-driven plants to operate at reduced capacity and does not allow expectations of a significant price boost
in the wholesale market.
The changes recently announced by the Regulatory Authority for Energy regarding the operation of the market
pave the way for the gradual transition to a more competitive market model and are expected to help restore
liquidity, whose scarcity was a major problem during the previous period.
With a 1.2 GW of installed capacity in full operation, the Group is now firmly established as the largest
independent energy producer in Greece and has secured the critical size required to benefit the most from the
impending full liberalisation of the domestic electricity market. In this context, the Energy Sector is expected
to have a steady and satisfactory contribution during 2014 and to boost the Group’s consolidated business and
financial results on an equal basis relative to the Group’s other key activity sectors.
IV BUSINESS RISK MANAGEMENT
Financial risk management aims and policies
The Group’s activities give rise to multiple financial risks, including the current and interest rate related risks;
the volatility in market prices; credit risks; and liquidity risks. The Group’s risk management program aims
at containing potential negative influence to its financial results, as this may arise from the inability to predict
financial markets and the volatility with respect to cost and sales variables.
The essential risk management policies are determined by the Group’s Management. The risk management
policy is applied by the Corporate Treasury Department. The latter acts as a service center, operating under
specific Management - approved lines.
Credit Risk
The Group does not exhibit any considerable concentration of credit risk in any of the contracted parties.
Credit risk originates from available cash and cash equivalents, derivative financial instruments and deposits
at banks and financial institutions; also from exposure to client derived credit risk.
Regarding commercial and other claims, the Group is not theoretically exposed to significant credit risks;
as of the multifaceted nature of the Group’s activities, there is no significant concentration of credit risk with
respect to its commercial requirements, as this is allocated over a high number of clients. However, the
atypical conditions that dominate the Greek market and several other markets in Europe are forcing the Group
to constantly monitor its business claims and also to adopt policies and practices to ensure that such claims
are collected. By way of example, such policies and practices include insuring credits where possible; pre-
collection of the value of product sold to a considerable degree; safeguarding claims by collateral loans on
customer reserves; and receiving letters of guarantee.
