In 2018, Transelectrica recorded a 11% YoY decrease in revenue, an increase in EBITDA of 6% and an increase in net income of 216%.

Last week Transelectrica published their FY 2018 non-consolidated financial results, showing a top line decrease of 11% YoY. The segment of profit allowed activities registered slight growth in revenues, amounting to RON 1.2bn (+0.4% YoY). This was due to a higher tariff valid from July 2018 onward and to the 2% increase in electricity consumption. On the flip side, revenues of zero profit activities decreased by 18% YoY, reaching RON 1.5bn. The main reason for the drop in revenues was the 31% drop in the revenues on the balancing market which was caused by negative imbalances and lower revenue from system balancing.

EBITDA grew 6% YoY to RON 403m as a 13% decrease in operating expenses managed to offset the negative top line performance. The main contributor to the EBITDA growth were the diminished expenses on the balancing market. Below the operating line, an improved FX result of RON -8m (-69%) gave an additional leg up to the bottom line. As a result of the aforementioned, net profit skyrocketed reaching RON 89m (+216% YoY).

Transelectrica Key Financials

Source: Transelectrica, InterCapital Research

On the balance sheet the company managed to significantly increase their net cash pile which now amounts to RON 285m (from RON 8.5m in 2017).

Investment wise, earlier this month, Transelectrica announced that they plan on investing RON 144.4m into upgrading the Domnesti transformer power station in 2020.