Transelectrica SA (TEL), Romania’s power- grid operator, said nine-month profit plunged 87 percent because of a widening financial loss and surging costs.
Net income fell to 19.2 million lei ($5.4 million) in the first nine months of the year from 153.5 million lei in the same period last year, the Bucharest-based utility said in a regulatory filing to the stock exchange in the capital today. Revenue rose 5 percent to 2.18 billion lei, while expenses surged 14 percent to 2.15 billion lei.
Transelectrica has increased spending to modernize and expand its outdated power grid to accommodate to a boom in wind- power generation, as Romania’s renewable energy incentives plan attracts investors in the country, including GDF Suez (GSZ) SA and Enel Green Power SpA.
The state-owned utility’s financial loss widened in the first nine months of this year to 65 million lei compared to a loss of 28 million lei in the same period of last year, according to the statement.
“The financial operations took into account the depreciation of the local currency against the main currencies in which Transelectrica took external loans for investments, namely euro, dollar and Japanese yen,” the company said in the statement.
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