The state’s financial black holes: public companies that lost hundreds of millions of lei

The largest loss was reported by the National Railway Company CFR SA, which recorded a negative result of 417.3 million lei. This company manages public railway infrastructure, a strategic sector that has suffered from years of underfunding, delayed investments, and high maintenance costs.

In second place is Societatea Electrocentrale Craiova SA, which reported a gross loss of 400.9 million lei. This company operates in the energy sector, where production costs, regulated prices, necessary investments, and market pressures can significantly impact financial results.

The third-largest loss was reported by Compania Naţională Unifarm SA, which showed a net loss of 354.2 million lei. This places Unifarm among the most troubled public companies analyzed in the report, as its loss exceeds the 350 million lei benchmark.

Fourth on the list is the National Railway Freight Transport Company CFR Marfă SA, which reported a gross loss of 320.8 million lei. This well-known state-owned entity has faced difficulties for years due to competition, historical debts, and restructuring issues.

The list continues with Compania Municipală Termoenergetica Bucureşti SA, which reported a loss of 198.5 million lei. This company plays a vital role in supplying heat to the capital but operates within a system characterized by outdated infrastructure, network losses, and dependency on public support.

Metrorex SA is also among the top losers, reporting a net loss of 181.1 million lei. The Bucharest metro operator provides critical urban transportation services, but high operating costs and fare policies can pressure its financial results.

Another significant loss was recorded by Societatea Complexul Energetic Valea Jiului SA, which posted a gross loss of 152.3 million lei. This company operates in a sector facing structural challenges related to the energy transition, high costs, and the need for restructuring.

Top state-owned companies with losses exceeding 100 million lei include:
– Compania Naţională de Căi Ferate CFR SA: 417.3 million lei
– Societatea Electrocentrale Craiova SA: 400.9 million lei
– Compania Naţională Unifarm SA: 354.2 million lei
– CFR Marfă SA: 320.8 million lei
– Bucharest Municipal Thermal Energy Company SA: 198.5 million lei
– Metrorex SA: 181.1 million lei
– Valea Jiului Energy Complex SA: 152.3 million lei

The report emphasizes that the losses suffered by these companies must be analyzed within the context of their economic and social roles. Many of them do not operate as typical market firms but provide essential public services such as rail transport, urban transportation, thermal energy, and infrastructure. Nonetheless, the substantial losses raise concerns regarding management efficiency, financial sustainability, and the use of public resources.

This issue is particularly significant given the extensive nature of the state-owned enterprise sector. The report examined a total of 1,735 companies under the control of the state or local authorities, with majority or full public ownership. Of these, 1,421 were active while 314 were inactive, being in bankruptcy, insolvency, liquidation, dissolution, or insolvency.

In contrast to the loss-making firms, the report also mentions state-owned companies that reported positive financial results in 2024. These include Hidroelectrica, Romgaz, the Bucharest National Airports Company, Transelectrica, Transgaz, the National Printing House, the Constanţa Maritime Ports Administration, the National Investment Company, the Romanian Lottery, and the Romanian Vehicle Registry.

This disparity illustrates that the public economic sector cannot be treated uniformly. While some state-owned companies generate significant profits and revenues, others incur large losses, especially in areas where public service is crucial and costs cannot be fully covered by the market.

The report highlights the need for more stringent oversight of state-owned companies, particularly those that consistently report losses or rely on subsidies. Without clear performance indicators, recovery plans, and managerial accountability, losses may continue to be financed by public funds without any genuine improvement in the services provided.

Prepared in 2025 with the most recent official data available, primarily from 2024, the report analyzes central public administration, local government, and state-owned enterprises. The data used comes from official sources, mainly from the Ministry of Finance, and was processed with support from the World Bank.