Wood & Company: Transelectrica’s profit could triple

Wood & Company Financial Analyst, Ovidiu Fer, indicated to Business Standard that this profit is only possible provided that “the congestion situation, imposed by the National Energy Regulation Authority (ANRE), is not repeated this year.”

According to Wood’s report, ANRE negatively influenced Transelectrica’s results, causing the company to lose €27.9 million. There is no guarantee that the situation will be settled in 2008, an electoral year, when ANRE will face major pressure from political parties.

Transelectrica announced 22.6 percent increased costs for producers, distributors and energy suppliers. The funds will be used to rehabilitate the transportation network and improve the connection with neighboring countries.

The Ministry of Economy and Finance owns 73.7 percent of Transelectrica’s capital, while Fondul Proprietatea has 13.5 percent, and other shareholders the remaining 12.8 percent.

The company listed 10 percent of its capital on the Bucharest Stock Exchange in 2007.