Romanian energy supplier’s net profit drops almost fivefold

Romanian energy supplier and distributor Electrica, one of the most valuable companies on the Bucharest Stock Exchange, recorded a net profit of RON 95 million (EUR 20.4 million) in the first nine months of this year, down almost five times compared to the same period of 2016. The largest part of this amount was recorded in the third quarter of this year, namely RON 87 million (EUR 18.7 million). The year 2017 was marked by adverse conditions in the first quarter and by a very slow improvement over the next three months, according to company representatives. The electricity distribution sector has come closer to normal profitability levels after the first half of this year, while the supply market has remained difficult until September, especially in the regulated market area with non-eligible customers. The total operating revenues of the Electrica Group reached RON 4.1 billion (EUR 897 million) in the first nine months of this year, being similar to the same period of last year. Meanwhile, the cost of electricity purchased amounted to RON 2.2 billion (EUR 474 million) up from RON 1.94 billion (EUR 425 million) in the first nine months of 2016. This resulted in lower operating profits for the group. The Romanian state holds just under 50% of Electrica while the remaining shares are owned by private investors. The company is listed on the Bucharest Stock Exchange and has a capitalization of EUR 925 million. editor@romania-insider.com