Fiáth Attila — Kristóf Tamás — Márton András

Financial performance of publicly owned energy companies in Hungary before and during the COVID crisis

The financial performance of the companies in the energy sector greatly influences the stability of economic progress and the introduction of environmentally friendly energy technologies. The coronavirus pandemic that hit Hungary in 2020 and the resulting economic crisis caused difficulties in many industries and sectors. The aim of this study is to discover how severely the COVID-19 crisis affected the energy sector in Hungary in the short run (until the end of 2020) by analysing the financial stability of the large companies in this sector, especially the public ones. The analysis is based on a logistic regression model using an extensive corporate database. The empirical evidence shows that the publicly owned energy companies performed slightly differently financially depending on their profiles, but the probability of their default was under 5% in the given period, indicating strong financial stability and resilience to the COVID crisis. The authors conclude that in itself, the economic setback caused by the pandemic had little influence on the green energy transition of the Hungarian actors in this sector.

LXX. évf., 2023. October (1057 - 1076. O.), DOI:10.18414/KSZ.2023.10.1057, Study

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