Romanian utility company Electrica sketches EUR 750 mln investment plan
Romanian utility firm Electrica, a major player in the electricity distribution and supply market, announced that its board of directors approved the RON 3.7 billion (EUR 750 million) investment plan of the subsidiary Distribuţie Energie Electrică Romania (DEER) for the period 2025-2029.
DEER would thus make investments of RON 706 million in 2025, RON 727 million in 2026, RON 747 million in 2027, RON 754 million in 2028, and RON 768 million in 2029, so a total of RON 3.7 billion over a period of five years, according to a report published on the Bucharest Stock Exchange.
"The approval of the investment plan by the board resulted from the obligation of distribution operators to submit to the market regulator ANRE the forecasted investment program within 30 calendar days from the date of entry into force of order no. 67/2024 approving the Methodology for establishing tariffs for the electricity distribution service," explained Electrica representatives.
Previously, the company summoned the shareholders to submit for approval the guarantee of a term loan of up to EUR 200 million that DEER will contract from the European Investment Bank (EIB) to finance the investment plan related to the period 2025-2027.
Electrica recorded operating revenues of RON 4.7 billion in S1 2024, down 29% compared to the same period last year. The net profit amounted to RON 102 million, RON 40 million less than last year.
EL shares are trading up 16% since the beginning of the year and 41% up y/y, at a market value of RON 4.5 billion. The Romanian state, through the Ministry of Energy, owns a 49.8% stake in the company's share capital.