Electricity & gas: Only two Romanian companies reach the EUR 1 bln threshold in annual turnover

Most Romanian companies operating in the electricity and gas sectors – producers, transporters or distributors – expanded their businesses in 2017 and posted higher profit margins, but only two of them – state-owned Hidroelectrica and Romgaz – reached the threshold of EUR 1 billion in turnover, according to Ministry of Finance data.

Producers

Romgaz, one of the two main producers of natural gas in Romania, posted a 34.4 percent increase of its turnover last year, to RON 4.58 billion (slightly over EUR 1 billion), and a net profit of RON 1.85 billion (EUR 406 million), up 81.3 percent from 2016 and equivalent to a profit margin of 40.4 percent.

The RON 1 billion net profit from 2016 turned into RON 1.8 billion in 2017 at a relatively stable number or employees around 6.000.

Hidroelectrica came close in terms of profit margin. Last year, the company posted a turnover of RON 3.2 billion (EUR 712.2 million), down RON 100 million compared with 2016, and a net profit of RON 1.3 billion (EUR 284.6 million), RON 130 million more than the profit reached in 2016.

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The hydropower company lost 120 employees between 2016 and 2017 and finished the last year with 3,279.

Nuclearelectrica managed to reach a turnover of RON 1.9 billion (EUR 415.9 million) in 2017 and a net profit of RON 303 million (EUR 66.5 million). The company posted a turnover growth rate of 15 percent, while the net profit increased almost three times.

The nuclear power company, which runs Romania’s sole nuclear power plant with two reactors at Cernavoda, has close to 2,000 employees.

CE Oltenia reported a turnover of RON 2.9 billion (EUR 641 million) in 2017, RON 600 million bigger compared to 2016, and reversed losses, posting a net profit of RON 180 million. The company has almost 14,000 employees.

The heat and electricity producer Electrocentrale Bucuresti (ELCEN), caught in a vicious circle in relation with the heating supplier and major client RADET, fell under insolvency procedure with a large debt of RON 2.4 billion, more than its turnover of RON 1.73 billion in 2017.

The company posted a net profit of RON 35.9 million in 2017, which seems irrelevant under the current circumstances.

Transporters and distributors

Transelectrica, a state-owned monopoly and electricity transmission system operator, reached a turnover of RON 3 billion (EUR 660 million) in 2017, up RON 300 million from the previous year.

The net profit dropped almost ten times, from RON 272 million to RON 28 million in 2017.

Transgaz, the other state-owned monopoly and gas transmission system operator, managed to increase its turnover with RON 50 million to RON 1.8 billion last year.

The company, which has around 4,500 employees, posted a net profit of RON 582 million (EUR 127 million), down RON 12 million from 2016.

The local subsidiary of German group E.ON is the only energy distribution company with a turnover over EUR 1 billion for more than six years.

In 2017, E.ON Romania registered a turnover of RON 4,7 billion and a net profit of RON 72,4 million (EUR 15,8 million) with only 182 employees.

Electrica Furnizare, which runs three regional electricity distribution subsidiaries in Transylvania and Wallachia, ended 2017 with a turnover of RON 3,88 billion (EUR 849,8 million), lower by RON 300 million compared with 2016, and a small net profit of RON 1.5 million, compared with RON 175 million in 2016.

ENEL, the local subsidiary of an Italian energy group, reached a turnover of RON 2 billion (EUR 441 million) in 2017, but posted losses of RON 89 million.

Oltenia Distributie, owned by the Czech energy group CEZ, reported a turnover of RON 771 million (EUR 168.9 million) in 2017, slightly lower compared with 2016, and losses of RON 15 million.