Shares of Romanian grid operator Transelectrica up 7.35% on higher tariffs

The shares of Romanian state-controlled power grid operator Transelectrica (BVB: TEL) leaped up by 7.35% on June 5, after the company announced in a note to investors that it will increase by 40% the regulated tariff charged for system services applied from June 1 to all end customers for the energy extracted from company networks.

The company announced that the new tariff had already been endorsed by the market regulator ANRE.

The change of the tariff value was determined by the application of the mechanism for correcting significant deviations from the forecast that was the basis for approving the tariff that entered into force on January 1, 2024, in accordance with the provisions of the regulatory framework issued by ANRE, the company explained.

Transelectrica’s market capitalisation reached RON 2.62 billion (EUR 530 million) after its shares rose by 45.7% y/y.

With a profit of RON 213 million (EUR 43 million) in 2023, the company is traded at a price-earning ratio of just over 12. The dividend disbursement resulted in a modest yield of 0.78%.

The company’s main shareholder is the Romanian state, which has a 58% stake.

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