Electrica, the largest company in the state’s portfolio, reported gross profit of RON 1.5 billion (€407 million), ten times higher year-on-year, due to the sale of its most valuable branch, Electrica Muntenia Sud, to Italian Enel group, according to preliminary data provided yesterday by the company to Business Standard.
According to information contained in its 2007 financial report, Electrica had gross consolidated profit of RON 94.36 million (€28.27 mln), and net profit of RON 46.08 mln (€13.8 mln), but this data also includes the stakes in the privatized branches.
The sale of Electrica Muntenia Sud was finalized in June 2008, with the value of the transaction amounting to €820 million. Enel acquired 50 percent of the electricity distribution and supply branch directly from Electrica for €395 mln, and subscribed €425 million worth of new shares to increase share capital, to own 64.4 percent of shares.
