Quarterly Report • May 16, 2016
Quarterly Report
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| Report date: | May 16, 2016 |
|---|---|
| Company name: | CNTEE TRANSELECTRICA SA, company with a dualist management system |
| Registered office: | Bucharest, Gen. Gheorghe Magheru Boulevard, no. 33, sector 1, zip code 010325 |
| Operational office: | Bucharest, Olteni Street, no. 2 - 4, sector 3, zip code 030786 |
| Telephone/ fax: | 021 303 5611/ 021 303 5610 |
| Unique registration code: |
13328043 |
| Trade Register Registration Number: | J40/ 8060/ 2000 |
| Company's establishment date: |
31.07.2000/ OUG 627 |
| Registered capital: | 733,031,420 lei, subscribed and paid |
| Trading regulated market for the issued securities: |
st category Bucharest Stock Exchange, 1 |
| The main features of the issued securities: | 73.303.142 shares with a nominal value of 10 lei/ share, dematerialized shares, freely tradable from 29.08.2006 under the TEL symbol |
| 20.000 bonds with a nominal value of 10.000 lei/bond, nominative bonds, dematerialized and unsecured, rd Category, traded at the BVB Credit Title sector – 3 corporate Bonds under the TEL 18 symbol, within the category; Maturity date 19.12.2018 |
|
| The total market value: | 2,155,112,375 lei (29.4 lei/share on 31.03.2016) |
| Applied accounting standard: | International Standards for Financial Reporting |
| Audit: | The quarterly financial data issued on 31.03.2016 are not audited |
To our knowledge, the quarterly financial data for the 3 months period ended on 31st of March 2016, had been issued according to the applicable accounting standards (International standards for Financial Reporting as approved by the European Union) and provide a correct and realistic view of CNTEE Transelectrica SA shares, bonds, financial position, profit and loss account.
This reports contains correct and complete information regarding the economic and financial situation and the activity of CNTEE Transelectrica SA.
Bucharest, May 12, 2016
Directorate,
Ion-Toni TEAU
Constantin VĂDUVA
Octavian LOHAN
Ion SMEEIANU Cătălin Lucian CHIMIREL
Directorate President
Directorate Member
Directorate Member
Directorate Member
Directorate Member
| FINANCIAL | OPERATIONAL | ||
|---|---|---|---|
| 755 mil lei |
▼3.1% y/y |
Incomes | 2,43* ▼1.62% % |
| 198 mil lei |
▼13.5% y/y |
EBITDA | 10,99 TWh |
| 99 mil lei |
▼21.6% y/y |
Net profit | |
| 14,02 TWh |
0% y/y |
Charged energy** |
| 22,5 mil lei |
▲24.5% y/y |
Purchase of tangible and intangible assets |
|---|---|---|
| 5,9 mil lei |
▼12.7% y/y |
Accounting registered fixed assets (PIF) |
| % | ▼1.62% y/y |
OTC |
|---|---|---|
| TWh | ▼0.3% y/y |
Transported energy*** |
OTC Own Technological Consumption
* The own technological consumption value in the electric energy, taken over by the electric transport network (transported energy)
** The charged quantity is defined as the electric energy quantity extracted from the public electricity networks (transportation network and distribution networks), except the exports of electrical energy
*** The transported quantity is defined as the physically conveyed energy quantity within the transport network
The summary of the quarterly financial results on March 31st 2016, is presented in the tables below. The financial results are not audited and the extended version for the same time period is presented in this Report annexes.
| [mil lei] | st Quarter 1 2016 |
st Quarter 1 2015 |
|---|---|---|
| Charged energy volume (TWh) | 14,02 | 14,02 |
| ALLOWED PROFIT ACTIVITIES | ||
| Operational incomes | 348 | 390 |
| Transport | 317 | 361 |
| Functional system services | 17 | 20 |
| Other incomes | 14 | 9 |
| Operational Costs | 138 | 143 |
| System operation costs | 63 | 65 |
| Maintenance and repairs | 15 | 14 |
| Salaries and other retributions | 41 | 40 |
| Other costs | 19 | 23 |
| EBITDA | 210 | 248 |
| Amortization | 82 | 80 |
| EBIT | 129 | 167 |
| ZERO-PROFIT ACTIVITIES | ||
| Operational incomes | 407 | 389 |
| Technological system services | 177 | 177 |
| The balancing market | 230 | 212 |
| Operational costs | 420 | 407 |
| Technological system services | 190 | 195 |
| The balancing market | 230 | 212 |
| EBIT | -12 | -19 |
| ALL ACTIVITIES (WITH PROFIT ALLOWED AND ZERO-PROFIT) | ||
| Operational incomes | 755 | 779 |
| Operational costs | 557 | 550 |
| EBITDA | 198 | 229 |
| Amortization | 82 | 80 |
| EBIT | 116 | 149 |
| Financial result | 2 | 1 |
| EBT | 118 | 150 |
| Tax on profit | -19 | -24 |
| Net profit | 99 | 126 |
| [mil lei] | March 30, 2016 | December 31st ,2015 |
|---|---|---|
| Fixed assets | 3,357 | 3,432 |
| Tangible assets | 3,267 | 3,341 |
| Intangible assets | 34 | 35 |
| Financial assets | 56 | 56 |
| Current assets | 1,637 | 1,802 |
| Stocks | 35 | 34 |
| Receivables | 692 | 723 |
| Other financial assets | 0 | 70 |
| Cash and equivalents | 911 | 974 |
| Assets | 4,995 | 5,234 |
| Owner's equity | 3,128 | 3,029 |
| Subscribed joint stock | 733 | 733 |
| Capital surplus | 50 | 50 |
| Legal reserves | 99 | 99 |
| Reevaluation reserves | 589 | 604 |
| Other reserves | 56 | 56 |
| Reported result | 1,601 | 1,488 |
| Long-term liabilities | 1,092 | 1,167 |
| Loans | 569 | 635 |
| Other liabilities | 523 | 532 |
| Short-term liabilities | 774 | 1,038 |
| Loans | 188 | 167 |
| Commercial liabilities | 486 | 776 |
| Other liabilities | 99 | 95 |
| Liabilities | 1,866 | 2,205 |
| Owner's equity and liabilities | 4,995 | 5,234 |
| [mil lei] | 3 months period ended on the 31st of march, 2016 |
3 months period ended on the 31st of march, 2015 |
|---|---|---|
| Cash flows before the circulating capital modifications | 197 | 229 |
| Cash flows (used)/generated in the exploitation activity | -81 | 89 |
| Net cash (used)/ generated in the exploitation activity | -103 | 70 |
| Net cash generated/(used) in the investments activity | 79 | -27 |
| Net cash used in the financing activity | -40 | -69 |
| Net decrease in cash and cash equivalents | -64 | -26 |
| Cash and cash equivalents on the 1st of January | 974 | 865 |
| Cash and cash equivalents at the end of the time period | 911 | 840 |
In 2016, the electric energy quantity charged for the services performed on the electricity market recorded a constant evolution, with a value similar to the one recorded in the first quarter of 2015 (the difference between the two periods is +0.04 TWh).
The incomes achieved during January – March, 2016, decreased by 3.1% comparing to the same period of the previous year (755 mil lei in the 1st Q of 2016, from 779 mil lei in the 1st Q of 2015).
Functionally, the segment of activities with allowed profit recorded an income decrease by 10.9% (348 mil from 390 mil lei in the 1st Q of 2015), determined by the decrease of the average taxes approved by ANRE for transport service, starting with 1st of July 2015, given the fact that the electric energy consumption has been relatively constant.
In the 1st quarter of 2016, the incomes resulted from the interconnection capacity allocation, slightly decreased by 4.1% comparing to the value achieved in the 1st quarter of 2015, (22 mil lei in the 1st Q of 2016 from 23 mil lei in the 1st Q of 2015), due to a reduced usage level of the interconnection capacity liquid assets by the traders on the electricity market.
*includes the incomes resulted from the transport fee and the fee corresponding to the functional system services
The total incomes resulted from the zero-profit activities increased by 4.8% (407 mil lei from 389 mil lei in 2015) determined by the incomes growth on the balancing market by 8.4%, the imbalances are higher in the 1st quarter of 2016, determined by the renewable energy sources and the weather conditions recorded.
Regarding the incomes resulted from technological system services, there is a minor increase of 0.4% (approximately 0.7 mil. lei).
The total operational costs (including the amortization) achieved during January – March 2016, increased by 1.4% comparing to the similar period of the previous year (639 mil lei from 630 mil lei).
Within the activities with allowed profit segment, the expenses (without amortization) decreased by 3.5% (138 mil lei from 143 mil lei).
OTC: The total cost to purchase the electric energy necessary to cover the own technological consumption decreased by 3.9% during January – March 2016, comparing to the similar period of the year 2015.
This was due both to the quantitative decrease, from 273 GWh to 267 GWh, and as a result of purchasing the electric energy for OTC from the electric energy free market at low prices, comparing to the prices recorded in the 1st quarter of 2015.
The technological losses decrease in terms of quantity was primarily due to the import/export flows which were more advantageous in terms of OTC, more favorable weather conditions determining the decrease of the Corona type losses and more favorable distribution of the production structure.
In the 1st quarter of 2016, the purchasing average unitary cost was reduced by 2% comparing to the similar period of 2015, respectively 182.4 lei/ MWh in 2016 in regard to 185.95 lei/ MWh.
Station internal consumption: Due to a temporary delay, on the 31st of March 2016, expenses regarding the electricity consumption were recorded in the stations, of only 0,2 mil lei comparing to 3,8 mil lei on March 31, 2015, the settlement of the stations consumption corresponding to the 1st quarter of 2016 to be performed in the 2nd quarter of 2016.
Congestions: Congestions (network restrictions) represent electricity transport requests beyond the limits of the network technical capacity, corrective actions being necessary by the transport and system operator and occur when programming the operation or during the operation in real time, the power circulation between two joints or system areas leads to failure in respecting the safety parameters during the electricity system operation.
Thus, in order to comply with the safety criteria in Dobrogea, the values notified by certain participants were reduced on the balancing market, which deliver in the 110 kV electricity network from Dobrogea and Tariverde 400 kV Station. This situation determined congestions expenses in January 2016 in the amount of 2.6 mil lei.
For the zero-profit activities segment, the costs increased by approximately 3.0% (420 mil lei from 407 mil lei in the 1st Q of 2015), determined by the expenses increase on the balancing market. The expenses related to the technological system services decreased by 2.9% in the 1st Q of 2016 (190 mil lei from 195 mil lei in the 1st Q of 2015) due to the price reduction for purchasing the power reserves necessary to balance the national energetic system.
During the 1st of January and 31st of March 2016, system technological services were purchased (slow tertiary reserve) according to the regulations, GD no. 1019/30.12.2015, whereby the "Winter energy program in the energetic field for ensuring the safe and durable operation of SEN" was approved.
For the period July 1, 2015 - June 30, 2016, the purchase of technological system services is performed according to the regulations of SC Hidroelectrica SA (Decision no. 1377/26.06.2015 amended by Decision no. 1423/01.07.2015) and SC Complexul Energetic Hunedoara SA (Decision no. 859/08.04.2015).
EBITDA decreased by 13.5% comparing to the similar period of 2015 (198 mil lei in the 1st Q of 2016 from 229 mil lei in the 1st Q of 2015), this evolution was mainly due to the segment influence of activities with allowed profit.
The allowed profit activities recorded a positive result, but 15.1% lower than the one achieved in the 1st Q of 2015 (210 mil from 248 mil lei in the previous year) on the background of income decreases.
EBIT generated by the zero-profit activities recorded a negative result, from 12 mil lei, decreasing from the result recorded in the 1st Q of 2015 (negative result of 19 mil lei).
For the entire activity, EBIT decreased by approximately 21.9% (116 mil lei from 149 mil lei). 1st Q of 2016).
The profit before tax profit, decreased by 21.1%, up to 118 mil lei in the 1st Q of 2016 from 150 mil lei in the 1st Q of 2015.
The difference between the profit recorded in the 1st Q of 2016 and the 1st Q of 2015, split in the constitutive elements of the profit is presented below.
The incomes resulted from interests increased by 18% in the first quarter of 2016, comparing to the 1st Q of 2015 following the recording of the interest corresponding to the first three months of 2016, while simultaneously recording some expenses related to the interests decreased by 19% comparing to the 1st Q of 2015.
The evolution of the exchange rate net differences was determined mainly by the national currency exchange rate evolution comparing to the foreign currencies bank loans contracted by Transelectrica to finance the investments programs (especially in Euro). Thus, on the 31st of March 2016, the Company recorded a net gain from exchange rate differences of 6,5 mil lei, and the net financial result recorded in the 1st quarter of 2016 was positive (2.1 mil lei), increased by 81% comparing to the one recorded on the 31st of March 2015.
3,9 4,2 4,5 4,8 January February March April EURO USD -4,95% -0,95%
The net profit decreased by approximately 21,6% comparing to the 1st Q of 2015 (99 mil lei from 126 mil lei).
Fixed assets decreased by 2.2% at the end of the 1st Q of 2016 mainly after recording the tangible and intangible assets amortization.
Current assets decreased by 9.2% on the 31st of March 2016 (1.637 mil lei) comparing to the value recorded on the 31st of December 2015 (1.802 mil lei), determined by the 4.4% decrease of receivables and 8.7% of cash and bank deposits.
On the 31st of March 2016, the balance account clients from the operational activity decrease comparing to the 31st of December 2015, determined mainly by the increase of the receivables collecting degree comparing to 2015 and the average taxes decrease approved by ANRE for the services performed by the Company, starting with the 1st of July 2015.
The main customers on the electricity market are represented by: RAAN, Electrica Furnizare, CET Govora, E.ON Energie Romania, Electrocentrale Oradea, Enel Energie, Enel Energie Muntenia, Romenergy Industry. Their share in the total gross receivables corresponding to the electricity market is 75%.
CNTEE Transelectrica SA performs activities corresponding to the bonus type support scheme for promoting high-efficiency cogeneration, as administrator of the support scheme, according to the provisions of GD no. 1215/2009, "the main attributions are to monthly collect the contribution for cogeneration and monthly payment of bonuses."
On the 31st of March 2016, the Company records receivable to collect from the bonus type support scheme in order to promote high-efficiency cogeneration of about 25% (December 31, 2015 – 25%) from the total commercial receivables.
In April 2016, ANRE issued a series of Decisions regarding the overcompensation corresponding to 2015, in the amount of 119.7 mil lei, for which the Company issued invoices for the high efficiency cogeneration electricity producers, whereat the activity overcompensation was recorded.
The clients from the bonus type support scheme for promoting high efficiency cogeneration recorded on the 31st of March 2016 a receivables decrease, mainly determined by the overcompensation collection, corresponding to 2014.
During January 1st and 31st of March 2016, the Company decreased the balance with the amount of 6,0 mil lei for the overcompensation of 2014, whereby collections from bank transactions in the amount of 0,2 mil lei (Termo Calor) and compensation based collections, performed through the Management and Information Institute (according to GD no. 685/1999) in the amount of 5,8 mil lei (Electrocentrale Oradea).
Also, during January 1st and 31st of March 2016, the Company decreased the balance with the amount of 3.2 mil lei for the undue bonus corresponding to 2015, whereby collections from bank transactions in the amount of 0.3 mil lei (Electrocentrale București) and compensation based collections performed through the Management and Information Institute (according to GD no. 685/1999) ) in the amount of 2.3 mil lei (CET Arad).
On the 31st of March 2016, the Company records receivables to collect, representing issued invoices, corresponding to the bonus type support scheme for promoting high efficiency cogeneration, as follows:
For the receivables extinguishing, generated by overcompensation for the 2011-2013 period (receivables to collect from RAAN and CET Govora), the Company requested the performing of mutual compensation.
RAAN and CET Govora did not agree with this extinguish method for the mutual receivables and debts, wherefore the Company continues to apply the provisions of art. No. 17. para. 5 of ANRE President's Order no. 116/2013 for approving the Regulation regarding the settlement of the contribution collecting method for high efficiency cogeneration and bonus payment for the electricity produced in high efficiency cogeneration: "In case the producer did not fully paid the support scheme administrator the payment obligations resulted according to the present regulation provisions, the support scheme administrator shall pay the producer the difference between the invoices value issued by the producer and the producer's payment obligations concerning the support scheme, with the explicit mention, on the payment document for the respective amounts" and withheld from payment the amounts corresponding to the due support scheme.
Long-term liabilities decreased by 6.4% during January - March 2016, mainly due to principal repayments (from 635 mil lei on the 31st December 2015 to 569 mil lei on the 31st of March 2016).
Short-term liabilities also decreased by approximately 25,5% on the 31st of March 2016. The decrease is mainly due to the liabilities reduction to the electricity suppliers, but also upon recording the compensations corresponding to the undue bonus/overcompensation within the support scheme.
Interest-bearing liabilities (long and short term) are presented in the structure below.
The owner's equity increased by 3.3%, due to the first quarter positive performance, credited in the reported result.
In the first quarter of 2016, the Transelectrica share (BVB symbol: TEL) recorded an improved evolution comparing to the main index of Bucharest Stock Exchange (BET) and also over the BET-NG index.
2016 started with a transaction price of 28.9 lei/share, market capitalization of 2,118 mil lei, at the end of the period (March 31st, 2016) the share price is 29.4 lei, with a market capitalization of 2,155 mil lei. The minimum trading price was recorded on 20.04.2016, of 26.4 lei/share, the maximum price of 29.8 lei/share was achieved on 02.03.2016.
The internal1 net consumption increased by 1,6% comparing to the last year similar period.
The net energy production decreased by approximately 4.0% comparing to the similar period of the year 2015, mainly due to a lower production in the hydroelectric and renewable stations as a result of unfavorable weather conditions.
Throughout the first quarter of 2016, export border physical trades decreased by 17.9% comparing to the similar period of 2015, while the import border flows increased by 130.2%.
Within the mix of production structure, during the first quarter of 2016 comparing to the first quarter of 2015, an increase of the thermal component share of approximately 3.9% was recorded, in the hydro component detriment which decreased by 4.3%.
Also, the unfavorable weather conditions determined a decreased energy quantity produced from renewable sources (with 0,2 TWh).
During the first quarter of 2016, the gross power installed within the electrical stations recorded a minor increase of 0.3% comparing to the first quarter of 2015.
The power installed within the station on renewable source increased during January – March 2016 comparing to the last year similar period by approximately 3% (132 MW) from 4,321 MW installed on the 31st of March 2015, to 4,452 MW installed on the 31st of March 2016.
The installed power dynamics, corresponding to the first quarter of 2016, respectively 2015, is presented below:
1 Values do not include the consumption corresponding to own services within the electricity production stations; the net consumption value includes losses from the transport and distribution networks as well as the pumps consumption within the hydro stations with pumping accumulation.
2015 Installed power (24.557 MW, gross value)
The border flows recorded important values on the relations with Hungary, Serbia and Bulgaria but decreased comparing to the previous year.
Thus, comparing to Q1 2016, the export physical flow with Hungary (-36,9%) and Serbia (-18,9%) decreased, while to Bulgaria a greater quantity of energy was exported (+31,7%).
In the first quarter of 2016, the total allocated capacity utilization degree on the interconnection lines for export decreased comparing to the same period of 2015, significant decreases being recorded on the relation with Serbia and Hungary.
The relation with Moldova did not record any import/export operations in the first three months of 2016 and 2015.
Both import and export physical flows on each border are presented below.
The import and export commercial flows for each border are presented below.
Commercial flows
In the first quarter of 2016, OTC in RET decreased with approximately 2,1 % comparing to the same period of 2015, due to the more favorable weather conditions, physical flows and more advantageous production structure.
Relating to the energy contour input, the losses slightly decreased from 2,47 % to 2,43 %.
In January 2016, the absolute value OTC decreased comparing to January 2015 by approximately 7,77% due to the favorable import/export flows and more advantageous production repartition, especially hydrocarbon production growth, which led to the reduction of energy transport away from the production sources.
The losses percentage reported at the RET input energy decreased from 2,5% in January 2015 to 2,22% in January 2016. The internal net consumption of energy was increased comparing to January 2015 by 3,79%. The contour input energy also increased by 4,18% in January 2016, comparing to the similar period of 2015. The weather conditions were unfavorable determining the Corona losses increase.
In March 2016, the absolute value OTC decreased comparing to March 2015 by approximately 2,43% due to more favorable weather conditions, which determined the corona losses decrease and more advantageous production mix, leading to the reduction of energy transport away from the sources.
The contour input energy also decreased by 3,37% in March 2016, comparing to the similar period of 2015. The losses percentage reported at the RET input energy increased from 2,6% in 2015 to 2,63% in 2016.
The value of the accounting registered fixed assets in the first quarter of 2016 was 5.9 mil lei.
The largest transfers from ongoing tangible assets to tangible assets are represented mainly by commissioning the investments objectives, as follows:
The tangible and intangible assets acquisitions2 value is 22.5 mil, comparing to the similar period of 2015 when the acquisitions value was 29.7 mil lei.
The investments projects in progress on the 31st of March 2016 are as follows:
Internal services modernization c.c. and c.a. in the Station 400/110 kV Draganesti Olt – 0.5 mil lei.
In the first quarter of 2016, the amount of 29.6 mil lei was collected, representing the unused advance corresponding to Portile de Fier – Anina new line section within the investments objective "Switching the voltage to 400kv for the section Porțile de Fier - Reșița - Timișoara - Salacaz - Arad/ LEA 400kv Porțile de Fier - (Anina)", until the Government Decree issuance regarding the technical and economic indicators approval and the expropriation procedure initiation for private property buildings.
During the first three months of 2016, 13 contracts have been signed for investments objectives, with a total value of 9.0 mil lei, comparing to 19 contracts with a total amount of 5.8 mil lei signed in the first quarter of 2015.
The most important investments contracts signed during January – March 2016, are:
2 It includes providers of property variation in the balance on March 31 of 2016
The project was implemented in Tulcea, Tulcea County, with a duration of 41 months and 15 days and it was framed within the 4th priority axis "Increasing energy efficiency and security of supply, in the context of combating climate change", operation "Supporting the investments in transport networks extension and modernization for electricity, natural gas and oil in order to reduce the network losses and to accomplish in conditions of safety and stability the transport and distribution services – transport part".
The project's objective is to increase the energetic efficiency and safety in operation of the Electricity Transport System by modernizing the electric transformer station and high voltage connections 400/110/20 kV Tulcea West, in the context of combating climate change.
According to the attributions and abilities established by the Law for electricity and natural gas no. 123/2012, RET Technical Code -Inspection I, approved by ANRE Order no. 20/2004, amended and supplemented by ANRE Order no. 35/2004 and the special Conditions associated to the License no. 161/2000 for performing electricity transport service, system service and for the balancing market administration, National Power Grid Company Transelectrica S.A., performs the planning activity regarding the RET development, taking into consideration the current stage and the electricity consumption and sources future evolution, including electricity imports and exports.
For this purpose, Transelectrica updates every 2 years the Electric Transport Network Development Plan for the next 10 successive years.
After the Plan is approved by the competent authority and the transport network owner agrees with the financing method for investments in the transport network, this document becomes public.
Since March 17, 2016", the document "The Electric Transport Network Development Plan – 2016-2025" is posted on Transelectrica website, within the "RET Management section.
On the 23rd of March, the Supervisory Board members appointed Dragoș Corneliu ZACHIA-ZLATEA as Supervisory Board President.
On the 28th of March, the Extraordinary General Meeting of Shareholders (EGMS) and the Ordinary General Meeting of Shareholder (OGMS) took place The main aspects included in the OGMS decision are:
The main aspects included in the EGMS decision are:
Subsequently the first quarter of 2016, the following events significant for the Company took place:
The international credit rating Moody's Investors Service increased by one level the credit rating of Transelectrica, to Ba1 (previously Ba2), the perspective is maintained on a stable level. The Transelectrica rating remains just one level below Romania's state rating (the previous two levels), thus recognizing the Company's management and financial performance.
On the 29th of April, the Extraordinary General Meeting of Shareholders (EGMS) and Ordinary General Meeting of Shareholder (OGMS) took place.
The main aspects included in the OGMS decision are:
Approving the gross dividend per share for 2015 of 2.65 lei gross/ share, proper for the shareholders registered within TEL shareholders Register on the 8th of June 2016, ex-dividend date of June 6 2016 and payment start date of June 28 2016.
Approving the annual financial situations separated and consolidated for 2015 financial year of National Power Grid Company Transelectrica S.A., as well as the annual report for 2015 regarding the economic and financial activity of the Company, according to the capital market legal provisions, grant discharge to the Executive Board and Supervisory Board members..
On the 31st of March 2016, the ownership structure was the following:
| Shareholder name | ||
|---|---|---|
| Romanian State through the Ministry of Economy, Commerce and Relations with the Business Environment |
43,020,309 | |
| Legal Persons 21,582,794 |
||
| S.I.F. Oltenia | 3,764,105 | |
| Physical Persons | 4,935,934 | |
| Total | 73,303,142 |
On the 31st of March 2016, the Executive Board was as follows:
| Ion - Toni TEAU | President |
|---|---|
| Octavian LOHAN | Directorate Member |
| Constantin VĂDUVA | Directorate Member |
| Ion SMEEIANU | Directorate Member |
| Cătălin CHIMIREL | Directorate Member |
The most significant litigation involving the Company are presented below:
The company is in dispute with ANAF, which issued a tax audit report on September 20, 2011 regarding the VAT reimbursement for September 2005 – November 2006, for 123 unused invoices identified as missing, special regime documents and for which it was estimated a collected VAT of 16.303.174 lei plus the accessories in the amount of 27.195.557 lei. The counter value of these obligations in the total amount of 43.498.731 lei, was deducted from the VAT paid by the Company in November. Subsequently, the Company has found that the current VAT amounts paid, were taken into consideration for the amounts settlement within the tax audit report above mentioned.
Thus, the Company was forced to pay penalties of 944.423 lei, corresponding to the VAT which should have been paid in November 2011, in order not to register overdue debts to the state budget. Altogether, in 2011, the Company paid the amount of 44.442.936 lei.
The company submitted an appeal to ANAF against the notice of assessment and requested its suspension until the administrative settlement of the complaint submitted to ANAF. The Court rejected the request for the notice of assessment's suspension of the tax audit report execution.
At the hearing set on 30th of April 2014, the resolution issued by the trial court – Bucharest Appellate Court, Section VIII Administrative and Fiscal Legal Department (Decision no. 1356/2014) in the case File no. 6657/2/2012 was the following: "Rejects the request of CNTEE Transelectrica SA complainant (Complaint against ANAF Fiscal administrative Document)". The Company appealed against the Decision no. 1356/2014, the following hearing being established for the 7th of April, 2016. On the 7th of April 2016, due to a lack of procedure, a new hearing has been established for 02.06.2016.
CNTEE Transelectrica SA issued a complaint against the ANRE President's Order no. 51 / 26.06.2014 ANRE registration no. 47714 / 04.08.2014 and an appeal to the Bucharest Appellate Court which is the subject of the case file no. 4921/2/2014, requesting either the above mentioned Order's modification or issuing a new order, for the recalculation of the RRR
value to the 9,87% level (recalculated with a coefficient (β) of 1,0359, according to the internal Transelectrica verifications) or, to the extent that this request will be rejected, using the same percentage of 8,52% established by ANRE for 2013 and the first semester of 2014.
On the 26th of June 2014, the ANRE Order no. 51 was issued, published in the Official Gazette no. 474/27.06.2014, regarding the approval of the average transport tax, system service tax and local taxes corresponding to the transport service performed by National Power Grid Company Transelectrica S.A., and abrogation of the Annex no. 1 of the ANRE President's Order no. 96 / 2013 regarding the approval of the transport service average tax, system service tax, local taxes corresponding to the transport service and the taxes for reactive electricity, practiced by the operators in the electricity sector.
The values considered when calculating the regulated return rate (RRR1 ) by ANRE according to the Methodology of establishing the taxes for electricity transport service approved by the ANRE Order no. 53/ 2013 ("Methodology"), determined a RRR value of 7,7%.
CNTEE Transelectrica SA considers that applying the provisions of Art. 51 from the Methodology by establishing the Beta parameter (β) value of 0,432 will determine the company's financial prejudicing, by decreasing the return rate with an estimated value of 138,4 mil lei³ having a significant impact on the financial interests of the society, thus prejudicing both the company's shareholders and their interests.
At the hearing on 09.02.2016, the law court accepted the evidence with accounting expertise – financial investments specialty and other securities entities, prorogued the evidence deliberation with technical expertise – electro-energetic specialty, after submitting the evidence with accounting expertise – financial investments specialty and other securities entities, deciding to postpone the case for June 10 2016, in order to complete and analyze the expertise report.
Following an inspection performed in 2013, The Court of Accounts decided that the Company should implement certain measures as a result of deficiencies found during this inspection. The decision and conclusion issued by the Court of Accounts were appealed to the Bucharest Appellate Court, case file no. 1658/2/2014.
In the hearing held on January 20, 2016, the law court postponed the case so as the accountant can state his own opinion regarding the complainant's objections on the performed expertise report and so as the technical expert can perform the expertise paper. The next hearing was established for 18.05.2016.
OPCOM
On November 24, 2014, The Electricity and Natural Gas Market Operator - OPCOM SA, sued the Company, in order to force the Company to pay the amount of 582.086,31 euro (2.585.161,72 lei at the BNR exchange rate dated 24.11.2014), representing the amount paid by OPCOM as fine, of the total fine of 1.031.000 euro, the request being the object of the case file no. 40814/3/2014.
Previously, the OPCOM SA Subsidiary General Meeting of Shareholders decided, in the session dated 10.06.2014, the total payment of the fine in the amount of 1.031.000 euro – applied by the Competition General Directorate – European Commission for the violation of Art. 102 of the Treaty regarding the European Union functioning, according to the Decision in the antitrust case AT 39984.
Also, OPCOM SA requested the law court to force the Company in paying the amount of 84.867,67 lei as legal interest corresponding to the period 11.06.2014 – 24.11.2014.
The action filed by OPCOM SA, is the object of the case file no. 40814/3/2014, before the Bucharest Court, Civil Section VI, covering claims, matters of dispute with professionals and the trial date established for - 29.06.2015. The Company met a claim at the request of summons in this cause, pleading as exceptions and background defenses regarding the groundlessness and illegality of the action.
In the hearing dated 24.07.2015, the court granted the application for summons issued by the complainant The Electricity and Natural Gas Market Operator - OPCOM SA in contradiction with the defendant National Power Grid Company Transelectrica S.A., and forced the defendant to pay the complainant the amount of 582.086,31 de euro, representing the
1 RRR- The regulated return rate can be found in the specialty literature under the abbreviated name of WACC– Weighted Average Cost of Capital – in translation The Capital Balanced Average Cost, the two indicators formula is similar: RRR = WACC = CCP + Kp/(1 – T) + CCI x Ki
² Value which determined the RRR decrease by 7,7 %
³ Value calculated comparing to a RRR value of 8,52%
amount paid by the defendant instead of the complainant from the fine value of 1.031.000 de euro charged by the European Commission Decision dated on 05.03.2014 in the AT.39984 case and the legal interest payment, in the amount of 582.086,31 Euro, calculated on 11.06.2014 and until the date of actual payment .
Also, the court obliges the defendant to pay the complainant the amount of 37.828,08 lei, as court expenses, with the right to appeal within 30 days from the communication date.
Against the sentence no. 4275/2015, pronounced in the above mentioned file, Transelectrica SA issued an appeal, which was registered before the Bucharest Court of Appellate.
Transelectrica filed a legal action against the Bucharest Trade Register director's resolution and against the documents issued by the SC Smart SA Subsidiary for increasing the joint stock, representing the object of the case file no. 14001/3/2015, before Bucharest Court – Civil Section VI, with hearing set for 07.09.2015.
On the 7th of September 2015, the court decided the disjunction of the litigations 2 and 3 within the request for summons issued by the complainant CNTEE Transelectrica in contradiction with the defendant Maintenance Services Society Subsidiary of Electric Transport Network Smart SA, the Romanian state through the General Secretariat of the Government and Trade Register, constituting a new case file with the hearing set on November 2, 2015. In the case file no. 14001/3/2015, for continuing the trial, the hearing was set on 19.10.2015.
On October 19, 2015, the court decided under art. 43, para. 1, pt. 2 C civ. proc., the suspension of the application for summons issued by the complainant Transelectrica in contradiction with the defendants Maintenance Services Society Subsidiary of Electric Transport Network Smart SA, Romanian State and Trade Register, until the final resolution of the case file which is the object of the file no. 32675/3/2015 before the Bucharest Court – Civil Section VI.
In the case file no. 32675/3/2015, at the hearing dated 16.11.2015, the court accepted the inadmissibility exception, rejecting the application for summons issued by the complainant Transelectrica in contradiction with the defendants Maintenance Services Society Subsidiary of Electric Transport Network Smart SA, the Romanian State and Trade Register, as inadmissible, with the right to appeal within 30 days from the communication date. The sentence has not been communicated to the Company until this present report date.
| [thousands lei] | 31.03.2016 | 31.12.2015 |
|---|---|---|
| Assets | ||
| Fixed assets | ||
| Tangible assets | 3,267,133 | 3,341,451 |
| Intangible assets | 34,310 | 34,570 |
| Financial assets | 55,944 | 55,944 |
| Total fixed assets | 3,357,387 | 3,431,965 |
| Current assets | ||
| Stocks | 34,529 | 34,329 |
| Clients and similar accounts | 691,751 | 723,448 |
| Other financial assets | 0 | 70,085 |
| Cash and cash equivalents | 910,846 | 974,451 |
| Total current assets | 1,637,125 | 1,802,313 |
| Total assets | 4,994,512 | 5,234,278 |
| Owner's equity and liabilities | ||
| Owner's equity | ||
| Joint stock, wherefrom: | 733,031 | 733,031 |
| Subscribed joint stock | 733,031 | 733,031 |
| Capital surplus | 49,843 | 49,843 |
| Legal reserves | 99,407 | 99,407 |
| Reevaluation reserves | 589,134 | 603,685 |
| Other reserves | 55,695 | 55,695 |
| Reported result | 1,601,339 | 1,487,645 |
| Total owner's equity | 3,128,449 | 3,029,306 |
| Long-term liabilities | ||
| Long-term advance incomes | 455,250 | 462,721 |
| Loans | 569,461 | 634,590 |
| Postponed taxes liabilities | 33,088 | 34,663 |
| Obligations related to the employees benefits | 34,669 | 34,669 |
| Total Long-term liabilities | 1,092,467 | 1,166,644 |
| Current liabilities | ||
| Commercial liabilities and other liabilities | 486,450 | 776,168 |
| Other taxes and obligations for social insurance | 7,872 | 6,763 |
| Loans | 188,360 | 167,362 |
| Provisions | 38,221 | 38,255 |
| Short-term advance incomes | 32,737 | 33,408 |
| Payment profit tax | 19,956 | 16,371 |
| Total Current liabilities | 773,596 | 1,038,328 |
| Total liabilities | 1,866,063 | 2,204,972 |
| Total owner's equities and liabilities | 4,994,512 | 5,234,278 |
| 2: Profit and loss separate account for the period ended on the 31st of March 2016 ANNEXE |
||
|---|---|---|
| ---------------------------------------------------------------------------------------------- | -- | -- |
| [thousands lei] | T1 2016 | T1 2015 |
|---|---|---|
| Incomes | ||
| Transport service incomes | 317,232 | 360,643 |
| System services incomes | 194,490 | 196,966 |
| Balancing market incomes | 229,883 | 212,082 |
| Other incomes | 13,628 | 9,433 |
| Total exploitation incomes | 755,234 | 779,123 |
| Exploitation expenses | ||
| System operation expenses | -62,859 | -65,145 |
| Balancing market expenses | -229,883 | -212,082 |
| Technological system services expenses | -189,647 | -195,302 |
| Amortization | -81,638 | -80,119 |
| Salaries and other retributions | -41,307 | -40,240 |
| Repair and maintenance | -14,518 | -14,244 |
| Materials and consumables | -1,691 | -2,090 |
| Other exploitation expenses | -17,353 | -21,032 |
| Total exploitation expenses | -638,896 | -630,254 |
| Exploitation profit | 116,338 | 148,869 |
| Financial incomes | 12,870 | 14,673 |
| Financial expenses | -10,775 | -13,514 |
| Net financial result | 2,095 | 1,159 |
| Profit before profit tax | 118,433 | 150,028 |
| Profit tax | -19,289 | -23,620 |
| Year profit | 99,144 | 126,408 |
| [thousands lei] | T1 2016 | T1 2015 |
|---|---|---|
| Exploitation activity cash flows | ||
| Period profit | 99,144 | 126,408 |
| Adjustments for: | ||
| Profit tax expense | 19,289 | 23,620 |
| Amortization expenses | 81,638 | 80,119 |
| Provisions expenses arising from the commercial and other receivables depreciation |
543 | 4,909 |
| Incomes arising from provisions reversal for the commercial and other receivable depreciation |
-2,032 | -5,464 |
| Tangible assets sale loss, net | 0 | 508 |
| Value adjustments reversal regarding the tangible assets | 0 | 54 |
| Value adjustments net reversal regarding the provisions for risks and expenses |
-37 | -355 |
| Interests expenses, interests incomes and unfulfilled incomes from the exchange rate differences |
-1,952 | -928 |
| Cash flows before the circulating capital modifications | 196,593 | 228,871 |
| Changes in: | ||
| Clients and assimilated accounts | 33,578 | 212,606 |
| Stocks | -200 | -50 |
| Commercial and other liabilities | -303,841 | -349,450 |
| Other taxes and obligations for social insurances | 1,109 | 1,251 |
| Advance incomes | -8,143 | -4,051 |
| Exploitation activity cash flows | -80,904 | 89,176 |
| Paid interests | -4,591 | -7,191 |
| Paid profit tax | -17,280 | -11,649 |
| Exploitation activity net cash | -102,776 | 69,982 |
| Cash flows used in the investments activity | ||
| Tangible and intangible assets purchase | 7,129 | -29,744 |
| Tangible assets sale cashing | 0 | 0 |
| Collected interests | 1,538 | 3,038 |
| Collected dividends | 0 | 0 |
| Other financial assets | 70,085 | 0 |
| Net cash used in the investments activity | 78,752 | -26,706 |
| Financing activity cash flows | ||
| Short-term loans withdrawals | 32,881 | 0 |
| Long-term loans repayment | -72,398 | -69,236 |
| Paid dividends | -65 | -93 |
| Net cash used in the financing activity | -39,582 | -69,329 |
| Cash and cash equivalents net increase | -63,606 | -25,699 |
| Cash and cash equivalents on the 1st of January | 974,451 | 865,238 |
| Cash and cash equivalents at the end of the period | 910,846 | 839,539 |
| INDICATORS | BVC Q1 2016 |
Preliminary accomplished Q1 2016 |
Differences | Achievement rate |
|---|---|---|---|---|
| (+/-) | (%) | |||
| [thousands lei] | 2 | 3 | 4=3-2 | 4=3/2 * 100 |
| TOTAL INCOMES1=Rd.2+Rd.5+Rd.6) | 802,202 | 768,104 | -34,098 | 96% |
| Exploitation total incomes | 351,114 | 347,924 | -3,190 | 99% |
| Financial incomes | 13,500 | 12,870 | -630 | 95% |
| Zero-profit activity incomes | 437,588 | 407,309 | -30,278 | 93% |
| TOTAL EXPENSES (Rd.7=Rd.8+Rd.2 | 706,006 | 637,450 | -68,555 | 90% |
| Exploitation expenses | 257,322 | 219,366 | -37,955 | 85% |
| Assets and services expenses | 118,838 | 92,993 | -25,846 | 78% |
| Taxes, contributions and assimilated payments | 4,878 | 4,532 | -346 | 93% |
| Personnel expenses | 43,930 | 41,269 | -2,662 | 94% |
| Other exploitation expenses | 89,675 | 80,573 | -9,102 | 90% |
| Financial expenses | 11,097 | 10,775 | -322 | 97% |
| Zero-profit activity expenses | 437,588 | 407,309 | -30,278 | 93% |
| GROSS RESULT (profit) | 96,196 | 130,653 | 34,457 | 136% |
| Indicators | Calculation formula | 31.03.2016 | 31.03.2015 |
|---|---|---|---|
| Current liquidity indicator (x) | Current assets Current liabilities |
2.12 | 1.95 |
| Indebtedness indicators (x): | |||
| (1) Indebtedness indicator | Loaned capital x Owner's equity |
0.18% | 0.24% |
| (2) Indebtedness indicator | Loaned capital x | 0.15% | 0.20% |
| Customers rotation speed (days) | Fixed capital Customers average balance* x 90 Turnover |
21 | 29 |
| Tangible assets rotation speed (x) | Turnover Tangible assets |
0.22 | 0.22 |
*When calculating the average balance account, the customers contributing to the turnover have been taken into consideration (energy, balancing, other customers, customer's invoices to be issued). The values corresponding to the uncertain customers, cogeneration scheme and overcompensation were not included within the average balance account.
regarding the contracts signed during the 1st quarter of 2016 for assets, services and works acquisition, with a value greater than 500.000 Euro/acquisition (for assets and works acquisition) and respectively of 100.000 Euro/acquisition (for services)
| No. | Contract | Subject of the Contract | Duration | Value | Contract | Legal basis | Acquisition | Acquisition | |
|---|---|---|---|---|---|---|---|---|---|
| number | Lei | Euro | type | procedure | Initiator | ||||
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| 1 | PT 6/2212/2016 |
Execution of the fiber optic communication between the Stations 400/220/100 Kv Bradu and 220/110 Kv Stupărei |
18 months |
2,806.9 | 0.00 | Works | GEO 34/2006 |
Call for tenders | ST Pitesti |
| 2 | C 14/2016 | Primary equipment acquisition of average and high voltage (Framework Agreement) |
36 months |
28,733.5 | 0.00 | Supply | GEO 34/2006 | Open tendering | Executive - DEM |
| 3 | BC 489/2016 |
Specialized security and intervention services for the ST Bucharest objectives |
36 months |
8,602.7 | 0.00 | Services | GEO Exception 34/2006 |
Open tendering | ST Bucharest |
| 4 | CR 14/2016 | Maintenance services for the LEA passing lanes from areas with arboreal vegetation (Framework Agreement) |
36 months |
1,237.8 | 0.00 | Services | GEO Exception 34/2006 |
Open tendering | ST Craiova |
| 5 | PT 8/2322/2016 |
Specialized security and intervention services for the ST Pitești objectives |
36 months |
4,991.0 | 0.00 | Services | GEO Exception 34/2006 |
Open tendering | ST Pitești |
| 6 | C 52/2016 | Specialized Consulting Service for Works/Services in LEA 110 – 750 kV |
36 months |
2,787.8 | 0.00 | Services | GEO 34/2006 | Open tendering | Executive - DTDR |
| 7 | C 41/2016 | Subsequent Contract No. 4 to the framework agreement no. C 261/2012 - " Revolving Bank Credit Line" |
12 months |
787.5 | 0.00 | Services | GEO 34/2006 | Call for tenders | Executive - DSFT |
| 8 | C 37/2016 | Neplan Software: 2 new licenses, 5 licenses Cim/Xml module included and Maintenance and Up grade (Service) for 13 Neplan Licenses + 5 Cim/Xml Licenses |
48 months |
1,840.1 | 0.00 | Services | GEO 34/2006 | Negotiation without previously publishing a participation notice |
Executive - UNO-DEN |
| "ANRE" | National Regulatory Authority for Energy | |
|---|---|---|
| "BAR" | Regulated assets base | |
| "BVB" | Bucharest Stock Exchange, Regulated market operator for trading Shares |
|
| "CEE" | European Economic Community | |
| "Companie", "CNTEE", "TEL" | National Power Grid Company Transelectrica S.A., | |
| "CPT" | Own Technological Consumption | |
| "CS" | Supervisory Board | |
| "DEN" | National Energetic Dispatcher | |
| "EBIT" | Operational profit before the interests and profit tax | |
| "EBITDA" | Operational profit before the interests, profit tax and amortization | |
| "EBT" | Operational profit before the profit tax | |
| "ENTSO-E" | The European Network of Transmission System Operators | |
| "GD" | Government Decision | |
| "IFRS" | Financial Reporting International Standards | |
| "JPY" | Japanese Yen , the official currency of Japan | |
| "LEA" | Overhead Power Lines | |
| "Leu" or "Lei" or "RON" | The official currency of Romania | |
| "MFP" | Ministry of Public Finance | |
| "MO" | Romanian Official Gazette | |
| "GO" | Government Ordinance | |
| "OPCOM" | Romanian Electricity Market Operator OPCOM SA | |
| "GEO" | Government Emergency Ordinance | |
| "PZU" | The Day-Ahead Market | |
| "RET" | Electric Transport Network, national and strategic interest electric network with a nominal voltage greater than 110 kV |
|
| "SEN" | National Power System | |
| "Smart" | Trading Company for the Electric Transport Network Maintenance SMART SA |
|
| "SSF" | Functional System service | |
| "SST" | Technological System service | |
| "TEL" | Stock exchange indicator for Transelectrica | |
| "TSR" | Total efficiency for the Shareholders | |
| "UE" | European Union | |
| "u.m." | Measuring unit | |
| "USD" or "dolari US" | American Dollar, the official currency of USA | |
| "WACC" | Weighted Average Cost of Capital |
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