Transelectrica cuts profit target from 70 to 10m RON

The Romanian national power grid company (TEL) is considering
revising this year’s budget downwards, to a 10 million-RON gross
profit, 7 times lower than the 70 million RON originally budgeted.
The modification of the budget is the result of a proposal made by
the Ministry of Economy, the company’s majority shareholder, with a
73.6% stake, and is to be discussed at September 22nd’s General
Meeting of Shareholders. The company’s revenues have also been
revised downwards, to 2.69 billion RON, from 3.07 billion RON, the
original level approved in July, according to the report sent to
the Bucharest Stock Exchange on Wednesday. The company now expects
an over 12% decline in revenues for this year. The company’
spending has been reconsidered, with an over 10% decline expected,
from 3 billion RON to 2.68 billion RON. The company posted 9.1
million euros (38.3 million RON) in losses in the second quarter of
this year, compared with 9.1 million euros (33.3 million RON) net
profit in the similar period of last year.