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Romania's Electrica 9-mo net profit nearly halves on higher electricity prices, regulatory instability

Romania's Electrica 9-mo net profit nearly halves on higher electricity prices, regulatory instability Electrica Romania

BUCHAREST (Romania), November 15 (SeeNews) - Romanian power supplier and distributor Electrica [BSE:EL] posted a net profit of 161 million lei ($37 million/34 million euro) in the first nine months of 2019, compared to a 315 million lei net profit a year earlier, the company said on Friday.

The decrease was mainly due to higher electricity prices in 2019, and to the modified regulatory framework applicable for the distribution segment in 2019, as well as to the impact of the regulated supply segment, particularly in January and February, Electrica said in an unaudited consolidated interim financial statement filed with the Bucharest Stock Exchange, BVB.

Power acquisition costs rose 31.8% on the year in the first nine months of 2019 to 2.45 billion lei.

The company distributed 13.3 TWh of electricity during the January-September period, 0.5% up compared to last year, to a total of 3.77 million clients.

Electrica's operating revenues rose 14.5% on the year to 4.72 billion lei in the nine months through September, while operating expenses rose by 21% to 4.53 billion lei.

"After the first quarter of this year was marked by the significant changes of the regulatory framework, which had adverse effects on the business, we managed to recover and to register a consolidated net profit of 161 million lei at the end of nine months, representing 133% from the budgeted value for 2019," Electrica CEO Corina Popescu said.

Electrica's EBITDA fell by 22% to 549 million lei in the January-September period.

Also on Friday, Electrica's board of directors approved a 39.2 million lei increase in the company's capital expenditure plan for the year, to 778.2 million lei.

Electrica booked a consolidated net profit of 230 million lei in 2018, up by an annual 34%.

Shares of Electrica, in which the Romanian state owns a stake of 48.8%, are listed on the Bucharest Stock Exchange and the London Stock Exchange.

Electrica's shares changed hands 0.45% lower at 11.5 lei by 1137 CET on Thursday in Bucharest. 

(1 euro=4.7667 lei)