Profit of "Transelectrica" fell 87.36% in the first semester

National energy transporter Transelectrica (TEL) ended the first six months of 2012 with a net profit of 22.58 million lei (5.1 million Euros), almost 8 times less compared to last year's similar period (down 87.36%), even though it had posted a profit of 43.6 million lei in Q1 2012.

After the first six months of 2011, Transelectrica had a net profit of 178.63 million lei.

The bi-annual report of the company says: "This was predominantly caused by the reduction of the energy consumption in the SEN (National Energy System), which led to a decrease of all our revenue categories which depend on the former, (transport service, system services, wholesale market), by the increase in liabilities generated by the transport tariff, by the tariff of system functional services; the increase of the material expenses (amortization, maintenance and other services provided by third parties) and of personnel expenses (the payment of the employee revenue sharing)".

The net revenue on June 30th, 2012 was 32.22 million lei, down 85.05% over H1 2011f, but in line with the approved budget (an insignificant increase of 1.65%).

In the first semester, the net turnover of "Transelectrica" reached 1.447 billion lei, up 7.86% compared to June 30th, 2011 (1.341 billion lei) and represents revenues obtained from providing licensed services on the electricity market.

The company's total revenues increased 3.28% YOY in H1 2012, to 1.489 billion lei, whereas the total expenses reached 1.457 billion lei on June 30th, 2012, up 18.79% YOY.

Operating revenues increased 7.77% between January and June 2012 compared to H1 2011, to 1.46 billion lei.

Compared to the first semester of last year, operating revenue fell 3.88 in H1 2012, as electricity supplied to consumers fell 5.91%.

A significant increase (109.09%), was seen by the revenues from the balancing market, which is a segment which had zero profitability (expenses increased to the same extent).

Operating expenses increased 20.11% YOY, to 1.39 billion lei, in the first semester of 2012.

Operational expenses increased 11.07% in H1 2012, compared to H1 2011.

A significant increase, of 109.09%, was seen by expenses on the balancing market, in direct proportion with the increase of the corresponding revenues.

On June 30th, 2012, the company had a gross operating profit of 69.94 million lei, up 20.77 million lei (42.24%) compared to the forecasted profit (almost 49.17 million lei), and 127.82 million lei less compared to the profit recorded in the similar period of last year, which amounted to 197.76 million lei (64.64% less).

On June 30th, financial revenues amounted to 26.49 million lei and included dividends from the company's branches, bank deposit revenues and revenues from exchange rate differentials.

Financial operating expenses at the end of the first semester amounted to 63.49 million lei and for the most part include expenses with interest on foreign loans coming due and exchange rate differentials calculated for liabilities denominated in foreign currencies coming due in the first semester of 2012 (interest, installments, suppliers).

In H1 2012, the company's financial activity saw a loss of 37 million lei, whereas on June 30th, 2011, the financial result was a profit of 17.77 million lei.

Between January and June 2012, long term debts increased 3% YOY, to 971.91 million lei, whereas short term debts fell 52.1% YOY, to 666.82 million lei.

Total receivables at the end of June amounted to 611.82 million lei, up 17.55% compared to the receivables at the end of June 30 2011, of 520.47 million lei.

Amounts to collect from the companies in the group, (9.77 million lei), represent 1.60% of the total, and are dividends earned by the company out of the profit of its branches recorded on December 31st, 2011.

Trade receivables (466.72 million lei) accounted for a total of 76.28% of the total receivables, and for the most part represent uncollected customer revenues for the services provided by the company on the electricity market (266.64 million lei).

The company's investment program for the year 2011 stipulated total investment expenses of 296.5 million lei (VAT excluded), down 38.97% over 2010 (485.817 million lei).

In the first semester of 2012 there were investments worth a total of 81.158 million lei were completed (VAT excluded).

In the first quarter, the majority shareholder of "Transelectrica", the Ministry of the Economy, Trade and Business Environment (MECMA - which holds 73.7% of the share capital of the company), sold 10,995,472 shares, (15% of the share capital), through a secondary public offering (SPO).

Following the secondary public offer, the Ministry of the Economy holds 58.69% of the share capital of "Transelectrica", the "Proprietatea Fund" owns a block of shares of 13.5%, and SIF "Oltenia" owns 5.1% of the shares of the company.