Romanian coal and power group CE Oltenia, which is seeking to get the European Commission's consent for a EUR 3.5 bln state-backed program of converting to green resources, announced another RON 939 mln (over EUR 180 mln) losses for 2020 when its incomes shrank by one third (-32%) to RON 2 bln (EUR 400 mln).

The company can secure only EUR 1.5 bln for the EUR 3.5 bln (with the rest of EUR 2 bln expected from the state), according to insolvency lawyer Gheorghe Piperea - who estimates that the EC could "only in theory" green light the restructuring program.

Both Piperea (in Bursa daily) and Ziarul Financiar, in a comment on this issue, remark the opposition expressed by Fondul Proprietatea (21.5% shareholder in CE Oltenia) to the Government's plan. The company's management is, however, thrilled about the EUR 3.5 bln project. It said it sent ten letters to banks (to get financing) and is seeking long-term contracts to sell its electricity.

"The current context is phenomenal because we have never had so much money at our disposal," said Lăcrămioara Diaconu-Pinţea, member of the CE Oltenia board of directors, who took her place in the directorate of CE Oltenia in May last year.

The main argument of CE Oltenia is its very size: it estimates it accounts for 20% of the country's electricity. However, in 2017 it accounted for 30% of the Romania's electricity, which means that the company is not indispensable for the country's electricity system.

By 2032, Romania should completely phase out the use of coal under the Resilience Plan (PNRR) - meaning that CE Oltenia should run wind farms, PV parks and gas-fired power plants (with H2 added). 

iulian@romania-insider.com

(Photo source: Facebook/Complexul Energetic Oltenia)