Romania’s power grid operator Transelectrica reported RON48mn (€10.3mn) losses for 2017, the company reported.
The losses were due to lower (regulated) fees and RON99mn additional payment liabilities calculated by the tax collection agency (ANAF) following the audit of the 2005-2010 financials.
In February, the company estimated RON26mn net profit. Its market capitalisation was RON1.7bn (€370mn) at the end of Q1.
The company’s investment operations and its investment plans are not impaired by the additional liabilities set by ANAF.
The fees set by the market regulator ANRE were cut (by 18.9% for the system services and by 8.9% for transmission services) to correct excess profits achieved in previous years. In addition, the high electricity price hurt company’s profitability as well.
The company’s release blames previous management for not provisioning the liabilities. “The imprudent behaviour of the past with respect to managing this situation had consequently a great negative impact only in the 2017 financial results, determining total accounting loss of RON48mn, which is mainly coming from the audit of previous periods concluded in 2017,” the company’s management commented.
However, the incumbent management was in office at the time when ANAF completed its audit in June 2017, as stated in the company’s release, while the CEO Corina Popescu was appointed in May 2017.
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