Romanianpower
supplier and distributor Electrica, said on Friday its consolidatednet
profit jumped32.2% on the year to 126.8million lei ($32.5 million/28.5 million
euro) in the first quarter of 2015, while gross profit climbed by only
15%.
Gross profit rose to 149.7 million lei from 130.2 millionin the
first quarter of 2014. However, profit tax decreased to 22.9 million lei from
34.2 million, the company said in its unaudited consolidatedfinancial report
for the first quarter of the year.
Commenting on the results, Raiffeisen
Bank said in a note to investors, "The net result is fully in line with our
figures [...]as the bankruptcy of one of the subsidiaries, SE Dobrogea, and the
subsequent de-consolidation generated gains on loss of control of38.5 million
lei, reducing the losses from the maintenance subsidiaries."
Electrica's
operating profit rose 8.6% to 142.6 million lei, while net financial income
turned to a positive7.1 million lei from a loss of 1.1 million lei a year
earlier.
Operating revenues rose 5.8% to 1.34 billion lei in the first
quarter.
"Overall, we are rather neutral on the results. We are bullish
however on the performance for this year, as the closing of two of the
maintenance subsidiaries and the lay-offs should lower the losses incurred by
these companies [...]," Raiffeisen Bank added.
Blue chip Electrica
issimultaneously listed on the Bucharest Stock Exchange and the London Stock
Exchange with a free float of 51.2%.
Its shares were changing hands
0.86% up at 11.7 lei by 0918 CET on the Bucharest Stock Exchange on
Friday.
The Electrica group operates in highly populated and
industrialised areas of Romania. Electrica’s distribution business
operatesnearly 8,500 kmof high voltage lines, some 46,000 km of medium voltage
lines and around 135,000 km of low voltage lines.