Romanian utility companies Transgaz and Transelectrica post strong profit increases in 2024 on higher regulated tariffs

Romania’s power grid operator Transelectrica (BVB: TEL) and gas grid operator Transgaz (BVB: TGN) both posted higher revenues and strong profit increases in 2024 as they benefitted from higher regulated tariffs for their core operations.

Transelectrica reported a net profit of RON 597 mln (EUR 120 mln) for 2024, 180% higher than in 2023. The group’s operating revenues went up 12% to RON 2.34 bln (EUR 471 mln), as the regulated transmission revenues were 5% higher than in 2023 and the quantity of energy transported went up by 2.8%.

Transgaz doubled its consolidated net profit to RON 391 mln (EUR 78.7 mln) as its operating revenues went up 29% to RON 2.3 bln (EUR 463 mln). Transgaz also benefitted from an increase in gas transmission tariffs. The approved regulated revenue related to natural gas transmission in the period October 1, 2023 - September 30, 2024 was RON 1.647 bln, some 58% higher than in the previous two years. Moreover, the energy market regulator ANRE approved another increase for the period October 1, 2024 – September 30, 2025, to RON 2 bln, which should also reflect in the company’s results for 2025.

The tariff increases and higher financial results have also boosted the shares of Transelectrica and Transgaz in the last year. Transelectrica’s shares have gained 53% over the last 12 months while Transgaz saw a 49% increase in its share price. Both significantly outperformed the BET index, which recorded an 11% increase over the same period.

Transelectrica and Transgaz are both majority controlled by the Romanian state.

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