Romanian electricity distributor sees strong growth in profits

State-owned Electrica group, one of the biggest electricity distributors and suppliers in Romania, recorded a consolidated net profit of RON 210 million (EUR 45 million) in the first half of this year. In the same period of 2017, the group’s net profit stood at RON 8 million (EUR 1.7 million). The company’s revenues totaled RON 2.65 billion (EUR 570 million), down 1% year-on-year, but the expenses with the purchase of electricity sold to clients dropped by 17%, due to lower prices on the primary electricity market. The expense for electricity purchased decreased by RON 262.7 million, or 17%, to RON 1,269 million in the six month period ending June 30 2018, from RON 1,531 million in the six-month period ending June 30 2017. The decrease is mainly due to the fact that the first part of 2017 was affected by the unfavorable events from the energy market, which generated significantly higher electricity prices as compared to H1 2018, reads the company’s report. The expenses with green certificates also declined by 15%, to RON 155 million. Electrica holds the monopoly for electricity distribution in Transylvania and northern Muntenia regions, where it is also the main electricity supplier. The state owns a 49% stake in the group. editor@romania-insider.com