Transelectrica Net Profit Drops 44% in 1Q, to RON38M

Exploitation expenses grew slightly in the first quarter, to RON605 million, compared with RON603 million in the first quarter last year.

Domestic electricity consumption declined by 2%, domestic production dropped 11% and exports dropped 38%.

On the profit-allowed segment, Transelectrica had better financial results compared with the first quarter of 2018, posting an EBIT of RON72 million, up 31% on the year.

It said transmission income grew 6% due to higher transmission tariffs (+7%) in the first quarter, as did revenues from cross-border transmission capacity sales. Sales growth fully absorbed the decrease in national power consumption, reflecting in lower billed quantities (-2%).

“Q1 2019 was a difficult one, characterized by high operating costs of the transmission system, particularly the costs of power procurement to compensate for technical losses in the grid. Despite the fact that the physical level of technical losses was lower than in the previous year, total power procurement costs were significantly higher (+RON14 million, representing +21%) amid a substantial increase in the price of energy on the wholesale market (the average price paid by Transelectrica was over 50% higher, from RON194 million?MWh in Q1 2018 to RON299 million/MWh in Q1 2019),” the company said.

In the zero-profit segment, Translectrica recorded a temporary financial loss of RON28 million in the first quarter, compared with a temporary profit of RON27 million in the first quarter last year.

Transelectrica has a share capital of RON733 million and is 58.69% owned by the state. Retailer Dedeman owns 6.14% in the power grid operator.

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