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Romania's Electrica swings to loss in Q1

Romania's Electrica swings to loss in Q1 Electrica Romania

BUCHAREST (Romania), May 16 (SeeNews) - Romanian power supplier and distributor Electrica [BSE:EL] posted a net loss of 41 million lei ($9.6 million/8.6 million euro) in the first quarter of 2019, compared to a 59 million lei net profit a year earlier, the company said.

Electrica's operating revenues rose to 1.6 billion lei in January-March 2019, compared to 1.39 billion lei in the like period of last year, the company said in an unaudited consolidated interim financial statement.

The company posted an operating loss of 47 million lei in the first quarter of the year, compared to an 81 million lei net profit in the like period of 2018.

"Considering the new legislative context and the fact that this year, compared to 2018, the regulatory framework has undergone significant changes, 2019 being the first year of a new regulatory period in the distribution segment, the results recorded in the first quarter of this year were anticipated in the revenue and expenses budget," Electrica CEO Corina Popescu said.

Electrica will continue with its business optimization and cost reduction programmes, as well as adjusting the strategy to market conditions and the regulatory framework, to make sure that end-of-year results will be in line with investor expectations, the CEO added.

Electrica booked a consolidated net profit of 230 million lei in 2018, up 34.3% on 2017.

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 0.95% higher at 10.65 lei by 1114 CET on Thursday in Bucharest. 

(1 euro=4.7615 lei)