Electrica anticipates 1.2bn-euro turnover

Electrica, a major domestic company specialising in electricity supply and distribution, anticipates a slight turnover increase in 2010, but expects its gross profit to be three times lower at the end of the year compared with the end of 2009.

“The gross figure expected in 2010 for the Electrica group revolves around 0.1bn RON (23.8m euros), while turnover stands at about 5bn RON (1.2bn euros),” say the representatives of the state-owned company.

According to Electrica’s latest estimates, in 2009 the company reached turnover worth 4.8bn RON (1.14bn euros) and posted net income worth 0.3bn RON (71.4m euros).

Last year energy consumption fell by 8.3% on the entire market, according to Transelectrica data, with most electricity suppliers experiencing supply drops particularly on the segment of industrial consumers.

Estimates for this year indicate a slight pick-up in electricity consumption against last year, by as much as 3%, so that consumption will not reach the 2008 level this year, either.

According to Electrica data, in the first nine months of last year the company had sold 11% less energy than in the same period of 2008. Sales growth in 2010 would come from the expansion of the company’s client portfolio.

The company says it has earmarked an investment budget worth 470m RON (111.9m euros), with the money to target the modernisation of distribution networks, leading to fewer supply disruptions for consumers. Against 2009, this year’s budget is around 30% lower.

“For the time being, Electrica does not plan to resort to loans to finance its operations,” the company officials said.

Electrica has repeatedly announced its intention to enter the energy generation market, being interested in developing several projects based on renewable sources. Thus, according to the latest information available, the company plans to develop around 375 MW, with projects including the construction of three wind farms of 50 MW each.