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Nuclearelectrica to become much more profitable after market deregulation; listing as scheduled
Nuclearelectrica company is the producer that the deregulation of the electricity market puts at most advantage, which will significantly increase the nuclear power producer's profitability, company Managing Director Daniela Lulache told AGERPRES on Wednesday.
'I am convinced Nuclearelectrica is a powerful engine having a potential for increase in terms of profitability, given that the company has posted a profit margin at between 2 percent and 5 percent in the last years. In this respect, I want to underscore that Nuclearelectrica is the producer that the deregulation of the electricity market puts at most advantage as a result of the cut shares set for selling in the regulated market to null by 2018 down from 50 percent. Such a deregulation process will have significant positive effects on the Nuclearelectrica revenues and profit, inherently leading to clearly higher profit margins than recorded up until now. In fact, 2013 is a year in which such modifications will favourably mirror the company's profit account by the cut in the relevant share of the regulated market from 71 percent in 2012 to 50 percent at present and by establishing a better price for the regulated market', Lulache stressed.
She added the company will be listed on the Stock Exchange as scheduled, in mid-July.
Lulache explained such listing is a signal of openness towards the private capital and structural reforms that the company needs to send. Furthermore, the Stock Exchange listing is justified by the need for the company to draw funding and connect to the global capitals circuit.
'All companies are drained in the wake of the economic crisis and connecting to the circuit of the global capitals means, in fact, providing the security of the growth capability through investments. We gain access to funding, know-how and connection to the global market, but mostly refresh our growth resources. For this reason listing can also translate into the absorption of capital by beefing up the company's growth capability. Secondly, Stock Exchange listing is also an impetus towards turning more efficient', the company manager underscored.
The syndicate brokering Nuclearelectrica's listing on the Bucharest Stock Exchange (BVB) is made up from Swiss Capital (syndicate leader) and BT Securities, with the syndicate's legal consultants being Musat & Asociatii alongside Hogan Lovells.
By the primary public offer to be conducted on the BVB, the Romanian state plans to sell new stocks accounting for 10 percent of Nuclearelectrica capital.
The Romanian state holds a majority stake in Nuclearelectrica at 90.28 percent and Proprietatea Fund holds the remainder 9.72 percent of the stocks.
The Romanian executive has recently approved a Resolution of the Government on the Nuclearelectrica privatisation strategy.