Undistributed profits from previous years are taken from "Bulgarian Energy Holding" EAD as a dividend for the state

The Council of Ministers adopted an Order amending and supplementing Order No. 2 of 2023 on the establishment and payment to the state of deductions from the profit of state-owned enterprises and commercial companies with state participation in the capital. It is related to the distribution of the profit of "Bulgarian Energy Holding" EAD (BEH EAD), says the government announcement.

The order stipulates that BEH EAD distributes and pays in full as a dividend to the state its undistributed profit from previous years, reported in its annual financial report as of 12/31/2022. The holding company will also distribute and pay a dividend of BGN 800,000,000 based on the adopted and audited interim financial report for the first half of 2023. The distributed dividend from "Bulgarian Energy Holding" EAD shall be paid by July 31, 2023.

The contribution of additional funds by BEH EAD to the state budget is a measure in the revenue part of the budget, with the aim of preserving the stability of public finances and in connection with the achievement of a budget balance with a deficit of up to 3% within the criteria of the Pact for Stability and Growth, with a view to fulfilling one of the main goals of the Bulgarian government - joining the Eurozone.

The allocation and contribution of funds as a dividend to the state will not negatively affect the financial stability of BEH EAD and the companies of the BEH Group and does not put the "Energy" industry at risk, the government's press release claims.

The order is in accordance with Art. 14, item 3 of the Law on Public Enterprises and it provides conditions for the implementation of the revenue part of the state budget in the part of non-tax dividend income, specified by the Ministry of Justice.