Electrica Oltenia slips into the red under CEZ

Electrica Oltenia, the biggest electricity distributor, in terms of numbers of clients in Romania, went into the red last year, when it was taken over by the Czech-owned CEZ company. The electrical power group CEZ, one of the biggest electricity exporters in Europe, posted its financial results for 2005 in Prague on Tuesday. The electricity distributor from Oltenia witnessed losses of 3.2 million euros, according to international accounting standards, being the third local company to go into the red immediately after being taken over by a strategic investor. Petrom, the biggest petroleum company, reported losses worth 246 million euros in 2004, immediately after being taken over by the Austrian group OMV, due to massive provisions being set up. Gas distributor Distrigaz Sud, taken over last autumn by Gaz de France, also announced losses of 7 million euros due to the setting up of provisions, the payments made to suppliers in advance and the difference between the acquisition price and the price for which gases are sold. ZF