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Romania's CE Oltenia gross profit surges in H1

Romania's CE Oltenia gross profit surges in H1 Romania

BUCHAREST (Romania), August 20 (SeeNews) - Romanian state-controlled energy holding company Complexul Energetic Oltenia (CE Oltenia) said on Tuesday it posted a gross profit of 188.9 million lei ($44.5 million/40.1 million euro) in the first six months of the year, compared to 35 million lei in the like period of 2018.

Turnover in the first six months of 2019 amounted to 1.51 billion lei, up from 1.41 billion lei in the first half of 2018, CE Oltenia said in a press release.

EBITDA grew 41% on the year to 614 million lei in the first half of 2019.

The company also said it has no debts to the state.

In April, CE Oltenia said it expects a slim gross profit of 1 million lei this year. Revenues are expected to come in at 3.9 billion lei, while expenses are forecast to reach 3.912 billion lei, the company said at the time. It also said it plans to lay off 200 of its employees.

CE Oltenia closed last year with a loss of 1 billion lei, despite expectations for a 70 million lei profit.

Set up in 2012, CE Oltenia produces electricity and heat mainly for the southern city of Craiova, in southern Romania, and sells coal to third parties, mainly to electricity producers.

Romania's economy ministry holds a 77.17% stake in CE Oltenia, blue-chip investment fund Fondul Proprietatea [BSE:FP] owns 21.54% and Electrocentrale Grup holds the remainder.

In February, the energy ministry said it plans to invest 180 million euro ($204 million) to convert to natural gas a 200 MW plant coal-fired power plant in Craiova. As much as 70% of the project costs will be financed by European funds, while CE Oltenia will cover 30%, it also said at the time.

(1 euro = 4.7305 lei)