Caruntu, BCR: 2010 will be the weakest operational year for Transelectrica since listing

Some market analysts do not believe in the forecasts of the management of Transelectrica electricity transmission company indicating rising income for this year and say the firm will slip into the red in 2010. This happens as the transmission company has generated profit at least in the past eight years.

"I believe Transelectrica's 2010 income will be a negative one as I cannot see how it could improve its operating figure too much until yearend and the financial income will definitely be negative. This will be the weakest operational year for Transelectrica since the company was listed. For 2011 and 2012, instead, there are very many solid arguments for Transelectrica to get a very good tariff from ANRE. Under the circumstances, investment in this stock is justified toward the yearend. Transelectrica may be one of the stocks of year 2011," believes Mihai Caruntu, head of the capital market research department of BCR.

According to him, the lower operating figure will come amid the significantly lower revenues from the allotment of interconnection capacities amid the restrictions the EU introduced this year.

Transelectrica has recently reviewed its 2010 budget, projecting a 13m RON net gain at yearend from the previous estimate of 4.4m RON.