According to the financial results registered last year, energy generation companies, as well as electricity suppliers and distributors reached a cumulated value of 15bn euros, up 20% from the previous year, reveals information published in "Romania's 100 Most Valuable Companies" Yearbook, compiled by ZF and Capital Partners.
The market has still not stabilised given that this year alone three large companies (Petrom, Alro and Italy's Enel) invested 2.4bn euros in total, in 3 new power generators (860 MW, 1,000 MW and 900 MW respectively) in almost four nuclear reactors.
Growth was almost entirely triggered by the increased value of major energy generation companies, while distribution companies registered the same levels as in 2005. This is a direct outcome of the prospects that each market is offering.
The highest increase was registered by Nuclearelectrica, which manages the Cernavoda nuclear plant and whose value soared by 98% in 2006. Nuclearelectrica benefited from extremely favourable market conditions, due to the fact that when consumption increases, it is difficult to build new power generators quickly, which inevitably increases prices and implicitly the value of power generation companies.
Nuclearelectrica also benefited from the launch of its second nuclear reactor, which practically was the only investment in energy generation carried out for some years and had a key impact on the company value appraised in 2006.
Nuclearelectrica saw its value increase from 460m euros in 2005, to 910m euros at the end of last year.
Ranked next in terms of growth value are thermoelectric stations, which, although in a delicate situation in terms of investments in retooling, have a huge potential.
Hidroelectrica, the cheapest energy generation company, saw its value advance by 30%, and remains the only state-owned energy company still fighting the 10 largest firms for the leading position in Romania's 100 most valuable companies.
The energy distribution segment witnessed very slight increases, due to the fact that the market was not significantly affected by any events that could boost the value of companies on this segment.
Fluctuations in value are most likely to occur on the energy supply segment, which will attempt to attract as many customers as possible.
The energy market is still dominated by state-owned companies, while private firms have only entered the energy supply and distribution sectors.
Should the current government fulfil its plan to create a large vertically integrated group, its value would top 9bn euros, half the value of CEZ, the Romanian state's model.
Energy companies
According to the financial results registered last year, energy generation companies, as well as electricity suppliers and distributors reached a cumulated value of 15bn euros, up 20% from the previous year
Growth was almost entirely triggered by the increased value of major energy generators, while distribution companies registered the same levels as in 2005.
The highest increase was registered by Nuclearelectrica, which manages the Cernavoda nuclear plant and whose value soared by 98% in 2006.
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