Transelectrica halves profit expectations amid high electricity prices

Romania’s electricity transport system operator Transelectrica cut the profit forecast for this year to RON 41 mln (EUR 8 mln) down from RON 91 mln projected initially, pointing to the high electricity price among others for the revision, Profit.ro reported.

The high electricity price pushed up the expenses related to the power it uses for maintaining the network (technological losses), but the volatile market resulted in other expenditures as well.

Transelectrica estimates total revenues of RON 2.38 bln (EUR 476 mln) this year, almost 35%more compared to the initially forecast.

As regards its plans, Transelectrica announced more investments (admitting that it was sluggish in this regard over the past years) and also announced plans to change the financing structure to more loans (as opposed to financing from own resources).

This, in essence, means, on the one hand, the optimisation of the financing structure - but also higher dividends on the other hand.

With a view of bringing its financing structure in line with its peers, Transelectrica aims to launch a Medium-Term Notes (MTM) corporate bond program, taking into account the option of borrowing in foreign currency in international markets, such as London, Paris, Luxembourg, or Dublin.

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