Termoelectrica burdened by past losses

Electrical and thermoelectric power producer Termoelectrica SA logged net profit of 4.6 million euros (173bn ROL) for 2003, while its operating revenues stood at 234 million euros (8,797bn ROL). The results helped it reduce some of the losses that have accumulated in previous years. Termoelectrica is a company whose business is ten times smaller than two years ago, when it was the second largest company on the Romanian market in terms of revenues, after state-run oil company SNP Petrom. It now has three branches that are separate legal entities, Deva, Galati and Bucharest, which operate as independent players on the energy market and whose operations receive separate accounting treatment from those of Termoelectrica SA. In the current structure, Termoelectrica SA’s units account for 1.5% of the power market at the moment, just a shadow of the giant that existed two years ago, previously meeting two thirds of the total demand. Following a series of outsourcing deals and some streamlining, the present day Termoelectrica is bearing the burden of historical losses of about 266 million euros. It also holds more than 11,000bn ROL (over 270 million euro) in receivables, while its debts are even higher, placing it at the heart of the energy sector in terms of arrearage. ZF