AFTER NINE MONTHS Profit of "Electromagnetica" falls 14.4% at the end of Q3 2012

Electromagnetica reported a net profit of 14.58 million lei in the first nine months of 2012, down 14.4% YOY, and a net turnover of 327.1 million lei, down 15.26% over last year's similar period.

The company's own equity increased 4.41%, to 281 million lei and it accounts for 85.7% of the total assets.

• The company sold over 9 million lei worth of LED lighting products

Lighting appliances with LEDs, the newest products launched by "Electromagnetica" have generated sales of 9.9 million lei, in the first three quarters of this year.

The production of electricity from renewable sources and the production of LED-lighting systems, in the development of which it has invested significantly over the last years, have seen the most important increases in turnover compared to the first 9 months of 2011, the report also states.

In the first nine months of the current year, revenues from the sale of LED lighting systems have reached 9.9 million lei, up 160% over the similar period of last year, and those pertaining to the production of electricity amounted to 6.09 million lei, up 77% over the similar period of 2011, and the weight of green certificates in the revenues from renewable energy increased from 42% to 71%.

Eugen Scheuşan, the CEO of the company said: "Without a doubt, lighting devices which use LED technology are beginning to be successful in Romania as well, even though, at the moment, we are selling almost exclusively to the private sector". He mentioned that in order to benefit from the accelerated worldwide growth of the LED technology, the entire R&D development capabilities have been mobilized, and he went on to say: "Results so far give us the confidence that it won't be long before the production of LED lighting appliances will match and surpass our traditional production segments".

• Turnover on the electricity supply segment fell by approximately 20%

The drop in turnover on the energy segment by approximately 20%, in the first nine months of the current year, compared to the end of Q3 2011, was partially compensated by the increase in the other lines of business, meaning that the company beat its budget forecasts.

The unfavorable conditions on the energy market, such as the extended drought, the state of "force majeure" invoked by "Hidroelectrica" and the increased volatility of prices on the Day-Ahead Market and on the balancing market, have caused the company to start adjusting its client portfolio ever since last year. Following the resizing, the portfolio has stabilized to a number of approximately 250 clients, with a diversified structure.

Electromagnetica currently conducts works of automation of the hydro-aggregates of three microhydroelectric plants and works for the modernization and retooling of two others. These works are estimated to be completed in H1 2013.

Operating revenues fell in the first three quarters of 2012, from 388.2 million lei in the first nine months of 2011, to 335.6 million lei at the end of Q3 2012, whereas financial revenues increased from 1.9 million lei to 2.2 million lei.

Operating expenses and financial expenses fell during the first three quarters of the current year, compared to last year's similar period.

Operating expenses fell to 319.5 million lei, from 368.4 million lei, and financial expenses fell to 627,000 lei, from 940,000 lei.

Total revenues fell from 390.1 million lei in the first nine months of 2011, to 337.8 million lei, in this year's similar period, and total expenses fell from 369.4 million lei to 320.1 million lei.

Non current assets have increased by 2.3 million lei, from 233.4 million lei at the end of September 30, 2011, to 235.8 on September 30, 2012. Current assets fell slightly, from 21.5 million lei in the first nine months of 2011, to 21.3 million lei at the end of Q3 2012.

In the first nine months of 2012, short and long term debts increased from 45.8 million lei to 46.4 million lei, and from 1.5 million lei to 1.6 million lei, respectively.

"Electromagnetica", producer and provider of electricity, currently has 560 employees and a share capital of 67,603m870.40 lei, divided into 676,038,704 shares, with a face value of 0.1 lei/share.

The company has as its main shareholders the Association of Employees of Electromagnetica, which owns 30.73% of the shares, and SIF Oltenia, with a stake of 21.12% of the shareholder structure.