Transelectrica national electricity transmission company concluded last year with 36% higher net income in euros, but did not manage to top the profit posted in 2003.
The company is going to be listed on the Stock Exchange this summer in the wake of a public equity offering.
Net income registered last year amounted to 104.7 million RON (29.2 million euros), according to the data published in the Official Gazette. During the same period, Transelectrica derived turnover worth 1.7 billion RON (476 million euros), according to the same source.
Thus, the company in the last three months of last year managed to derive turnover worth above 250 million euros, after turnover logged for the first nine months of the year had reached 219 million euros.
Transelectrica was last year subject to an audit process in view of its upcoming floatation on the Bucharest Stock Exchange, which helped rectify “basic errors” in the accounting reports, according to the preliminary offering prospectus.
According to the preliminary issue prospectus for the company”s listing on the Stock Exchange, in 2004 Transelectrica posted net income worth 21.3 million euros. The company logged losses in the second half of last year. At the end of the first half, Transelectrica reached net income worth 115.2 million RON (31.4 million euros).
The state, the only shareholder of Transelectrica, during the Extraordinary General Meeting convened on April 28th approved the sale, through an initial public offering, of a number of 7.33 million new shares in the company with a view to its floatation.
According to the latest data available, the offering is going to be launched at a price equivalent with 4.75 euros per share, which would put the total value of the offering at approximately 35 million euros. The sale price of issued stock will be denominated in the domestic currency against NBR”s exchange rate valid at the moment the final offering prospectus was approved by CNVM (National Securities Commission).
At this price, the PER (profit/earnings ratio) indicator of the stock would equal 12. The indicator shows how expensive a company”s shares are against its earnings.
In line with a survey Raiffeisen Centrobank carried in March, the main energy companies listed on European capital markets traded at PER indicators ranging between 13 and 17.
The biggest company listed on the Bucharest Stock Exchange, Petrom, is trading at a 14.6 PER calculated against income derived over the last four quarters.
The public equity offering is going to be handled by a syndicate made up of Alpha Finance, Raiffeisen Capital & Investment and BRD Securities and is scheduled for the first half of June.
The electricity transmission company is carrying out an investment programme worth 375 million euros during the period 2005-2007, to modernise the power transmission infrastructure.
Transelectrica
* Is set to be listed on the BSE this summer
* Posted net income worth 29.2m euros last, while turnover stood at 476m euros
* A number of 7.33m shares will be sold through an initial public offering
* The offering will be launched in the first half of June at a price of 4.75 euros per share
* Is carrying out a 375m-euros investment programme during 2005-2007 period.