Electrica's profit, sevenfold increase in its listing year

Electrica has reported a net profit of 280.5 million lei in 2014, the year when the company was floated on the Bucharest Stock Exchange. 

The preliminary financial results indicate a 712 percent jump in annual profit compared to 2013, ended with a net profit of 39.4 million lei.

"This remarkable evolution of the net profitability is the result of higher finance revenues driven by the improved performance of the distribution and supply subsidiaries, which resulted in an increase in dividends paid to Electrica SA, as the parent company," said Ioan Rosca, Electrica's CEO, as per a press release.

Last year's operating revenues declined to 249 million lei, down 16 percent over the previous year, as a consequence of a diminution of the value of service-level agreements concluded with its subsidiaries. The operational expenses followed the downtrend, as well, leading to a positive result as concerns the operating profit (101,000 lei), compared to a 53 million lei loss in 2013.

Electrica is the leading distributor and supplier of electricity in the domestic market. The group's core business segments are the supply and distribution of electricity which is the largest one in the domestic market both in terms of volume of electricity distributed to users and number of users