Transelectrica published their FY 2020 results yesterday, showing a -1% YoY decrease in sales, EBITDA +11% YoY and net profit of RON 114m (+18% YoY).

Transelectrica sales in FY 2020 amounted to RON 2.4bn representing a -1.2% YoY decrease mainly determined by the operational results related to zero profit activities (balancing market) and to the reduced amounts of delivered electricity. Namely, the total amount of electricity billed for services provided on the electricity market (53.85 TWh) registered a 3% YoY decrease.

The segment of profit allowed activities registered a 2% YoY decrease in revenues, mainly determined by 4% decrease of transmission revenues and of other revenues on the energy market. This was due to a diminished electricity quantity delivered to customers while the average tariff approved by ANRE for such services was about RON 0.08 / MWh higher in 2020 compared to 2019, owing among others to the impact of Covid-19 pandemic.

EBITDA was up 10.5% YoY, amounting to 437.5m as operating expenses fell 3.6% YoY. Operating profit of the profit allowed activities amounted to RON 61m, decreasing 55% YoY, meanwhile operating profit from zero-profit activities soared to RON 108m from last year’s loss of RON -22m.

Below the operating line, the company posted a net financial loss of RON -2m, marking a 77.4% improvement from last year’s net financial loss of -8.7m.

Finally, net profit amounted to RON 113.7m, representing an +18.4% YoY growth.

Turning our attention to the balance sheet, the company posted a net cash position of RON 386m, thus continuing to operate virtually debt free.  

Transelectrica Key Financials

Fondul reported a total NAV of RON 10.35bn (EUR 2.12bn), which translates into a NAV per share of RON 1.7216 (0.6% YoY).

According to the latest NAV report (29 January 2021), Fondul reported a total NAV of RON 10.35bn (EUR 2.12bn), which translates into a NAV per share of RON 1.7216.

When comparing it to the same period last year, their total NAV recorded a decrease of -11.7%, meanwhile due to the fund’s intensive buyback program, NAV per share increased slightly by 0.6% YoY. Meanwhile, when comparing MoM, both Fondul’s NAV and NAV per share observed a solid increase of 0.8% and 1.4%, respectively.

When observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for 64.8% of the total NAV. In terms of the Fund’s portfolio structure, unlisted equities account for as much as 73.24%, representing an increase of 1.85 p.p. YoY. Listed equities and net cash and receivables follow with 17.52% (-7.2 p.p. YoY ) and 9.24% (+5.37 p.p. YoY), respectively.

Turning our attention towards the share’s price performance, in January, the company’s share price increased by 4.14%, while as of 15 February the share price amounted to RON 1.1650. Note that the discount to NAV per share currently stands at 6.2%.