January 4 (SeeNews) - Romanian power supplier and distributor Electrica [BSE:EL] said on Monday that it has completed the merger by absorption of three electricity distribution companies within Electrica Group.
Through the merger of the three companies - Transilvania Nord, Transilvania Sud and Muntenia Nord, the new company Distributie Energie Electrica Romania (DEER) becomes the most important national operator of electricity distribution networks, Electrica said in a statement filed with the Bucharest Stock Exchange, BVB.
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DEER will operate 198,988 km of electric lines in 18 counties, from three geographical areas of the country, representing 40.7% of the Romanian territory, and will serve over 3.8 million users.
"By implementing the merger of the three distribution companies within the Group, medium and long-term benefits will be obtained for all stakeholders. It is a major project which will allow us to streamline costs, while accelerating the digitization of major business processes, as well as to improve operational performance in order to increase the quality of services provided," Electrica SA CEO Corina Popescu said.
DEER will be responsible for the distribution of electricity in the counties of Cluj, Maramures, Satu Mare, Salaj, Bihor, Bistrita-Nasaud, Brasov, Alba, Sibiu, Mures, Harghita, Covasna, Prahova, Buzau, Dambovita, Braila, Galati and Vrancea.
Since 2014, Electrica Group has become the largest investor in the upgrading and retrofitting of electricity distribution networks, with a total of 4.39 billion lei ($1.1 billion/901.5 million euro) invested.
The net profit of Electrica, the parent company of the group, surged to 396 million lei in the first nine months of 2020, from 161 million lei in the like period of 2019, partially driven by higher power distribution tariffs and increased retail sale prices. Electrica's operating revenues rose to 4.895 billion lei in January-September 2020,compared to 4.723 billion lei in the same period of 2019.
Shares of Electrica, in which the Romanian state owns a stake of 48.8%, are listed on the BVB and the London Stock Exchange.
Electrica's shares changed hands 0.40% higher at 12.6 lei by 0928 CET on Monday on the BVB.
(1 euro=4.8694 lei)