EP Energy buys a stake in the Schkopau power plant

17. 7. 2012

The EP ENERGY Group has acquired an equity stake of 41.9% in the German lignite fired power plant Schkopau with an installed capacity of 900 MWe, specifically through its acquisition of a 100% interest in Saale Energie GmbH (SEG) from
US-based NRG Energy, Inc., for approximately EUR 141 million.

The Schkopau power plant is situated near the city of Halle in Saxony-Anhalt, one of the German states. E.ON Kraftwerke GmbH holds the majority interest in the Schkopau power plant.

Through this transaction, EP ENERGY, a part of the Energetický a průmyslový holding Group (EPH), has effectively acquired a part of the Schkopau power station that corresponds to an installed capacity of 400 MWe. The total installed electrical capacity of EP ENERGY’s power stations has therefore risen to 1,477 MWe.

“Acquiring a stake in the Schkopau power plant follows up on our acquisition of the coal mining company MIBRAG. Thanks to the Schkopau acquisition, we will interconnect coal extraction with power generation, thereby ensuring long term sales of the coal from MIBRAG mines,” said Jan Špringl, EP ENERGY’s CEO and member of its Board of Directors. “The transaction confirms our enormous interest in the German energy market and is also a part of our broader strategic plan to achieve a vertical integration of MIBRAG,” he also noted. “As a result of the Schkopau acquisition, EP ENERGY becomes de facto a half-German company in terms of operating profit generation,” added Mr Špringl.

The Schkopau power plant is supplied by lignite from MIBRAG’s Profen mine. It is an important part of the electricity supply system in central Germany. Schkopau supplies energy to, among others, the neighbouring major chemical works and also for Deutsche Bahn.

EP ENERGY is a vertically integrated energy utility covering the complete value chain from coal extraction to electricity and gas supply for final customers. EP ENERGY is the largest supplier of heat and the second largest electricity producer in the Czech Republic. EP ENERGY is placed third in brown coal mining in Germany, where it owns MIBRAG, a company whose output amounted to 19 million tonnes last year.

The cogeneration capacities of Elektrárny Opatovice (EOP), Pražská teplárenská, United Energy (UE), MIBRAG, and Plzeňská energetika (PE) and the renewable capacities of EP ENERGY have a total electrical capacity, already including the 400 MWe from Schkopau, of 1,477 MWe and a capacity of 4,744 MWt for heat production. Through its combined heat & power generation plants, EP ENERGY supplies heat in the Czech Republic to approximately 360,000 households and also for corporate, municipal and institutional customers. The EP ENERGY Group has a total of 4,400 employees and reported an EBITDA of CZK 7.3 billion (EUR 297 million) for 2011.

EP ENERGY is a wholly-owned subsidiary of ENERGETICKÝ A PRŮMYSLOVÝ HOLDING (EPH). The shareholding structure of EPH is composed of the PPF Group (40% of shares) and the J&T Group (40%); Daniel Křetínský holds 20% in EPH and is also responsible for its management.