“The leu-euro exchange rate of the final day of last year was responsible for most of our financial losses, due to an increase in the cost of loans, which led to a drop in net profit,” company officials told Business Standard. “We had previously based our calculations on an average exchange rate of RON 3.8/€1, and not of some RON 4/€1. The operating profit was very good, but, considering the investment loans, the effect of the exchange rate was negative,” officials added.

 

According to the latest available data, the company forecast gross profit worth RON 126.3 mln (€31.5 mln), twice as high as the result registered in 2008. However, the 2009 budget will be re-evaluated, and a decision will be made during the General Shareholders’ Meeting on 23 February. “The budget will be modified, probably downward, as the highest risk is a maximum five percent decline in energy consumption at the national level,” added company officials.

 

The company is controlled by the Ministry of Economy, which owns a 73.68 percent share package. Transelectrica is listed on the Bucharest Stock Exchange (BVB). Once the results were announced, the company’s shares traded for RON 10.1 per unit, down 2.88 percent, and the company’s market value amounted to RON 762.35 mln.