You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Romania's Transelectrica H1 net profit plummets 73% y/y

Romania's Transelectrica H1 net profit plummets 73% y/y Transelectrica Romania (Author: Transelectrica) License: all rights reserved.

BUCHAREST (Romania), August 12 (SeeNews) - Romanian power grid operator Transelectrica [BSE:TEL] said on Friday that its net profit slumped by 73% year-on-year in the first half of 2022, to 28 million lei ($5.9 million/ 5.7 million euro), mainly due to higher electricity purchase prices.

The current price situation on the wholesale electricity market is fundamentally different compared to the one in the first half of 2021, strongly influenced by the rise in prices, Transelectrica said in a filing to the Bucharest Stock Exchange, BVB.

The centralised short-term markets organised by the Electricity Exchanges recorded unprecedented historical prices, following the international context on the energy markets, accentuated by the conflict in Ukraine, the company added.

Transelectrica's total revenues rose 35% year-on-year to 858 million lei in the first six months of 2022 on the back of higher revenues from the transmission tariff approved by the national energy regulator ANRE as well as improved interconnection revenues.

Total operating expenses increased by 70% to 714 million lei in the first half, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 33% year-on-year to 143 million lei.

First-half electricity production and consumption decreased by 5% and 8% year-on-year, respectively. Cross-border exports rose by an annual 6%, while cross-border import flows registered an increase of 47%.

Transelectrica has planned 468 million lei investments for 2022, of which it implemented 34% during the first half of the year.

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 1.86% higher at 18.5 lei as at 1444 CET on Friday on the BVB.

(1 euro=4.8909 lei)