Romanian electricity distribution and supply group Electrica posts losses in 2021

Energy company Electrica (BVB: EL), one of the largest electricity distribution and supply companies in Romania, reported for the year 2021 an unaudited consolidated loss of RON 552 mln (EUR 110 mln) compared to a profit of RON 387 mln achieved in 2020, according to the report sent to the Stock Exchange (BVB).

The company has a market capitalisation of RON 3.46 bln (EUR 700 mln) after the price of its shares edged up by 0.81% on the day it released the FY 2021 results.

Electrica reported a negative consolidated operating result of minus RON 605 mln, from a profit of RON 451 mln in 2020, Economica.net reported.

The bottom line result was dragged down by the soaring electricity and natural gas prices on the wholesale markets under the circumstances of capped end-user prices. The Government is supposed to compensate this year for the costs incurred by the energy suppliers under the ‘cap and subsidy’ scheme.

Electrica’s expenditures for the acquisition of electricity and gas soared to RON 5.7 bln in 2021, from RON 3.9 bln in 2020.

Electrica Group provides services to about 3.8 mln users and has a national coverage area - with a coverage of 18 counties in three geographical areas for electricity distribution: Northern Transylvania, Southern Transylvania, Northern Muntenia, and throughout the country for the supply of electricity and maintenance and energy services.

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