Electrica SA, one of the largest companies on the Romanian market, reported a return to profits again at the end of last year under international accounting standards, Nicolae Coroiu, Electrica' s chief executive, said. The electricity distributor and producer reported an approximately 2.19bn euro (88,991bn ROL) turnover and is competing for the title of Romania's largest company with Petrom, which is yet to announce its results for 2004. Electrica's turnover in ROL grew by about 21% compared with 2003, outstripping inflation.
Gross profits last year reached nearly 34 million euros (1,378bn ROL), after posting losses in 2003 due to the crisis in the energy system caused by the drought. In its four-year history, Electrica also made a profit in 2002.
The company is trying to maintain its business at around 2bn euros and will complete the sale of its eight distribution branches to strategic investors by privatisation in the coming years.
To continue being a major player on the energy market, Electrica intends to remodel its business portfolio through energy trading and by tapping into new segments, such as electrical power generation and telecommunications, the company's long-term business plan shows.
It has an investment peak of up to 350 million dollars (270 million euros) scheduled for this year, up 84% on 2004.
Besides electricity distribution infrastructure, Electrica is now focusing on communications infrastructure in order to establish the Societatea de Servicii Integrate de Comunicatii (integrated communications services company) to operate its fibre optics network.
Roland Berger, a management consultancy company, will first conduct a feasibility study, after which the integrated communications services operator will be set up and the public communications operator licence secured some time after that.
Electrica is
