Without Muntenia Sud effect, Electrica sees turnover drop by 36%

Electrica energy distributor and supplier, a major player on the domestic electricity market, which is still state-owned, in the first half of this year posted turnover worth 574m euros (2.431bn RON), down 36% from the same period of last year, when it reported consolidated turnover worth 888.5m euros (3.26bn RON). It was the company’s gross income, though, that suffered the most dramatic change, as it dived to 36m RON (8.5m euros), almost 50 times less than in the first six months of last year. The income decline was primarily the result of the fact that after privatisation, the Muntenia Sud branch of Electrica no longer contributed to the company’s figures. In April 2008 the privatisation of Muntenia Sud was finalised and around 395m euros in cash and another 425m euros as a capital increase entered Electrica’s accounts. Besides the effect of the finalisation of Muntenia Sud’s privatisation, the company’s financial indicators were also hurt by the situation of energy sales. Domestically, electricity consumption in the first half dropped by around 10% from the same period of last year.