Transelectrica SA (TEL), the Romanian power-grid operator, said it turned to profit in the first half of the year, as the company cut costs and an industry-driven economic recovery boosted electricity demand.
Transelectrica reported net income of 178.6 million lei ($59 million) in the first half compared with a loss of 58.1 million lei, the Bucharest-based company said in a filing to the capital’s stock exchange. Revenue rose 13 percent to 1.44 billion lei, while costs dropped 8.3 percent to 1.22 billion lei.
The first-half “profit was mainly the result of additional revenue stemming from higher electricity consumption, but also from a diminished volume of expenses,” according to the statement.
Romania’s economy exited a two-year recession in the first quarter, helped by surging exports and industrial output, which boosted electricity consumption by 5.6 percent in the first half of the year and production by 11.4 percent compared with the year-ago period, Transelectrica said. Electricity consumption and production will continue to grow at the same pace in the second half, it said.
Energy consumption will probably grow about 5 percent in the second half compared with the same period of last year, while production will probably increase about 10 percent in the same period, Transelectrica said.
To contact the reporter on this story: Irina Savu in Bucharest at firstname.lastname@example.org
To contact the editor responsible for this story: James M. Gomez at email@example.com