Following the approval of the Board of Directors, Electrica submitted the Binding Offer regarding the subscription of 700,000 shares in CCP.RO, with a nominal value of RON10/shar. On December 8, 2022, the actual subscription was made, in the amount of RON7 million, so that, following the subscription, Electrica will own 8.06% of the share capital of CCP.RO, the report reads.
CCP.RO will fulfil the role of central counterparty for the transactions concluded on the markets served, respectively on financial instruments markets, including derivative financial instruments, administered by the Bucharest Stock Exchange (BVB) and on the markets organized for the trading of electricity administered by the Romanian Electricity and Gas Market Operator OPCOM (OPCOM) (significant shareholder of CCP.RO – with a 19.06% stake).
The Central Counterparty is a central financial infrastructure that intervenes between the parties of a transaction, becoming the buyer for each seller, respectively the seller for each buyer, guaranteeing the completion of the settlement of the transaction by applying specific mechanisms for risk management. The main objective is to increase liquidity on the local capital market, by launching a derivatives market on shares and indices that will also enhance the spot market. In the first stage, CCP.RO aims to launch asset-backed futures contracts on shares and stock indices – with cash settlement, futures contracts with asset-backed electricity – with cash settlement and physical delivery option, as well as forward contracts for electricity.
“The launch of derivatives on the energy market will allow a better management of market risks for all participants. Electrica expresses its strategic interest in the development of the derivatives market on the energy market to manage the risk of the increase in the price of electricity for the supply segment, with the possibility of subsequent interest also for the distribution segment, in order to limit the increase in the price of electricity to cover the NL (Network Loses),” as per the report.
By entering the shareholding structure of CPP.RO with a participation of 8.06%, Electrica aims to be an active member in defining the company’s strategy and direction, respectively in setting the corporate governance, methodologies, and corresponding risk management policies, thus contributing to market development, the stability of the financial system and the reduction of credit and counterparty risks in the energy market.
Electrica had a net profit of RON533.7 million in January-September 2022, up 640.8% on the year, and revenues of RON7.2 billion, up 44% on the year, in line with stock market data.
The company has a market capitalization of RON2.7 billion following a 21.3% decline in shares since the beginning of 2022, amid deals worth RON133.5 million.
Electrica is 48.8% held by the Romanian State through the Energy Ministry.