Finance Ministry data show Tinmar Energy, the most important company in the Tinmar group, posted 1.8 billion lei (EUR386 million) revenue last year, almost 30% lower than in 2016.
Moreover, the company posted RON29 million loss compared with a RON14 million profit the previous year.
The company officials did not comment on the results, but the decline also shows in the market share Tinmar Energy has on the competitive segment of the electricity supply sector.
Whereas it was the second leading supplier on the competitive segment with 9.1% market share in 2016, last year its market share dropped to merely 4.53%.
Energy market watchdog ANRE data show the company continued to lose market share this year, as well, so it only accounted for 3.25% of the electricity supply market at the end of February.
Tinmar started as an oil product trader in 2011. In 2014, it got the license to supply electricity and this was the most important factor in its growth. The customers it supplied electricity to include Lukoil, Lidl, Arctic and Carrefour.
In 2017, however, the market turned against the major electricity suppliers, as the year went down in history as one with the highest prices.
January became the most expensive month in ten years, with electricity trading for a staggering EUR450/MWh at times, compared with an average of EUR30 to EUR40/MWh.
According to the data published by the OPCOM energy exchange, the average price on the Day-Ahead market, the most important market of OPCOM, was about EUR48/MWh in 2017. This was the solely the price of electricity sold by producers to suppliers and was the highest in five years, without hitting the 2008 record, though.
This caught many companies off-guard, as their buying policies focused on the spot market, considering bilateral contracts had become unappealing due to higher prices.
A year later, many of the suppliers that when through the shock of 2017 say they have turned from risk takers into risk-averse players, choosing contract stability over price bets.
Despite the decline in revenue, Tinmar Energy announced early this year it would expand into supplying power to household consumers, aiming for an over 10% market share thereof. (EUR1=RON4.6660)
(English version by Loredana Fratila-Cristescu)