Romania's Transelectrica grows 9-mo net profit fivefold on higher transport tariffs

The increase in net profit was mainly due to higher transport tariffs and interconnection revenue in the context of the decrease of electricity quantity delivered to consumers, as well as due to the significant increase in revenues from the balancing market, Transelectrica said in a filing to the Bucharest Stock Exchange, BVB.

"Despite a very difficult year and difficulties in the first nine months of 2022, when energy prices were considerably higher across the European Union, a situation also exacerbated by the conflict in Ukraine, the company met all its financial liabilities", Transelectrica added.

During January-September, national electricity consumption decreased due to the increase in primary fuel prices which was reflected in the final price of electricity, and due to warmer weather, according to the bourse statement.

Transelectrica's total revenues soared 83% year-on-year to 1.74 billion lei in the first nine months of 2022 mainly due to the increase in interconnection revenues and the recording of revenues from one’s technological consumption (OTC) capitalization.

Total operating expenses increased by 57% to 1.08 billion lei during January-September, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) soared 149% year-on-year to 659 million lei.

Electricity production and consumption decreased by 7% and 6% year-on-year, respectively, during January-September. Cross-border exports rose by an annual 28%, while cross-border import flows registered an increase of 30%.

Transelectrica has planned 469 million lei investments for 2022, of which it implemented 60.6% during the first three quarters of the year.

In October, Transelectrica announced that it has signed 424 million euro ($415.6 million) worth of non-refundable financing contracts under the EU's Modernisation Fund for projects for the development of the national grid infrastructure.

In 2021, Transelectrica swung to a net loss of 6 million lei, from a 145 million lei net profit in the previous year.

Blue-chip Transelectrica's shares traded 6.22% higher at 19.65 lei as at 1146 CET on Monday on the BVB.

(1 euro=4.8982 lei)