Most profitable state energy companies

In 2008, Transelectrica and Nuclearelectrica were affected by the exchange rate due to loans, Romgaz’s production dropped, and Rovinari’s profit was affected by environmental costs. On the other hand, Electrica, Transgaz, Complexul Energetic (CE) Turceni, and Hidroelectrica did well last year. “As concerns regulated activities [Ed. n. transportation and distribution], no special merit goes to operators, but rather to the regulator.

A significant change appeared in the area of electricity production, with the weight shifting from the law of the seller to that of the buyer, and the last quarter delivered blows due to the crisis and a drop in demand,” said a consultant for Business Standard. He added that last year’s profits are not the merit of the management of respective companies, but rather to conjuncture, with profit margins dropping sharply due to the crisis in 2009.

The Ministry of Economy, which took over all energy companies at the beginning of this year from the Authority for State Assets Recovery (AVAS), plans to reorganize these into 1-5 state giants by 15 March, when the new strategy is due to be finalized.

Top spot is claimed by Electrica, with turnover last year amounting to €1.63 billion, and gross profit at €407 mln. Its profit was ten times higher year-on-year, due to income from the sale of its most valuable branch, Electrica Muntenia Sud, to Italian Enel group.

Second place goes to Romania’s largest gas producer, Romgaz, which reported turnover worth €1.02 billion and gross profit of €206 million, followed by national gas transporter, Transgaz, that reported preliminary financial data indicating gross profit of €77.32 million, net profit worth €64.78 mln, and turnover of €304.11 mln, 7.8 percent higher than in 2007. CE Turceni claims fourth place, with gross profit of some €33.7 million, and turnover worth €331.5 mln in 2008.