Electrica 1H Net Profit Rises 30%

08.14.2015 By Bogdan Neagu

Romanian electricity distribution and supply company Electrica (EL.RO) Friday said its net profit for the first half rose nearly 30% on the year on higher operating revenue and improved cost control.

The company posted net profit of 277.1 million lei (EUR62.4 million) for the January-June period, up 29.8% from RON213.5 million in the year-ago interval.

Electrica consolidated revenue from operations rose 7.5% on the year to RON2.6 billion, as both the distribution and supply segments registered higher income, the company said in its financial report.

Revenue from the electricity distribution segment increased 7% to RON1.2 billion, following a 6% rise in distributed volumes, the company said.

Revenue from the power supply operations rose 5% to RON2.2, due to both increases in supplied energy and the value of green certificates included in invoices to the final consumer.

On the other hand, salary and benefit expenditure fell during the first half, as a result of layoffs at service subsidiaries which are in bankruptcy or reorganization procedures. The reorganization also led to lower costs for maintenance and repairs, while power acquisition expenses rose following the increase in supplied electricity volumes.

Electrica invested RON185 million in the January-June period, with 95% of the amount going to the distribution network, the financial report showed.

Electrica is a holding company for a group which comprises four electricity distribution subsidiaries, one supply company and three service firms. The Romanian government holds a 48.8% interest in Electrica.