Romania, Transelectrica has decreased the profit forecast for this year

, SEE Energy News

Romanian electricity transmission system operator Transelectrica has decreased the profit forecast for this year to 8.3 million euros down from the initial estimate of 18.4 million euros, pointing to the high electricity price among the reasons for the revision.

The high electricity price pushed up the expenses related to electricity it uses for maintaining the network (technological losses), but the volatile market resulted in other expenditures as well.

On the other hand, Transelectrica estimates total revenues of around 476 million euros for this year, almost 35 % more compared to the initially forecast.

Regarding its investment plans, Transelectrica announced more investments, admitting that it underperformed in this regard in the past years, and also announced plans to change the financing structure to more loans, as opposed to financing from own resources. This means the optimization of the financing structure and possibly higher dividends.

Transelectrica recorded a net profit in the amount of 23.3 million euros in 2020, which is by 18.3 % higher compared to the previous year. The increase in profit was mainly due to reduced operational expenses, including depreciation, as well as to an efficient management of available resources.

Transelectrica’s total revenues dropped slightly by 1 % year-on-year to 486 million euros in 2020, mainly due to the decrease of the operational revenues associated to zero profit activities and also by diminished quantity of transported electricity. Total operating expenses increased by 8 % year-on- year to 199 million euros in 2020, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 11 % year-on- year to 89.5 million euros.

Transelectrica invested almost 74 million euros in its infrastructure in 2020, up by an annual 43 %.