Romanian Power Utility Electrica's Cons Net Profit Rises 32.2% y/y in Q1

Romanian power supplier and distributor Electrica [BSE:EL] said on Friday its consolidatednet profit jumped32.2% on the year to 126.8million lei ($32.5 million/28.5 million euro) in the first quarter of 2015, while gross profit climbed by only 15%.

Gross profit rose to 149.7 million lei from 130.2 millionin the first quarter of 2014. However, profit tax decreased to 22.9 million lei from 34.2 million, the company said in its unaudited consolidatedfinancial report for the first quarter of the year.

Commenting on the results, Raiffeisen Bank said in a note to investors, "The net result is fully in line with our figures [...]as the bankruptcy of one of the subsidiaries, SE Dobrogea, and the subsequent de-consolidation generated gains on loss of control of38.5 million lei, reducing the losses from the maintenance subsidiaries."

Electrica's operating profit rose 8.6% to 142.6 million lei, while net financial income turned to a positive7.1 million lei from a loss of 1.1 million lei a year earlier.

Operating revenues rose 5.8% to 1.34 billion lei in the first quarter.

"Overall, we are rather neutral on the results. We are bullish however on the performance for this year, as the closing of two of the maintenance subsidiaries and the lay-offs should lower the losses incurred by these companies [...]," Raiffeisen Bank added.

Blue chip Electrica issimultaneously listed on the Bucharest Stock Exchange and the London Stock Exchange with a free float of 51.2%.

Its shares were changing hands 0.86% up at 11.7 lei by 0918 CET on the Bucharest Stock Exchange on Friday.

The Electrica group operates in highly populated and industrialised areas of Romania. Electrica’s distribution business operatesnearly 8,500 kmof high voltage lines, some 46,000 km of medium voltage lines and around 135,000 km of low voltage lines.

Source: SeeNews