The seventeen companies, most of which operate in the energy sector, are worth over EUR12 billion, that is one quarter of the value of all the 100 companies put together. This shows the government continues to control highly valuable assets. The value of these companies fell by 25% in 2011 from 2008, so that the crown jewels lost EUR4 billion during the crisis.
Compared with the previous editions, there were three new entries this year: Electrica (until now only the non-privatized branches had been valued and the parent company left out), ROMATSA (Romanian Air Traffic Services Administration) and Electrocentrale Deva.
All in all, the 100 most valuable companies this year were worth EUR12 billion together, 25% less than in 2008, when they were worth over EUR16 billion.
The only state-owned company that is more expensive now than it was in 2008 is Transelectrica, the national gas transmission company, which is traded on the stock exchange.
It was also the state-run company with the highest profit margin last year, almost 30%, which is comparable to the level of the most profitable private sector companies in the cement industry for instance. Transgaz was the state-owned company with the second-highest net profit, almost EUR90 million, behind Romgaz.
Hidroelectrica, Romgaz and Nuclearelectrica are the three most valuable state-run companies. Hidroelectrica is the largest energy producer in Romania. Romgaz is the only natural gas producer, which covers half of the domestic output, while Nuclearelectrica is the operator of the Cernavoda nuclear plant, which generates about 20% of the energy produced in Romania.
The thermoelectric power plants were the hardest hit by the crisis, so that they are down at one third of the 2008 value. Complexul Energetic Turceni, the largest thermoelectric power plant in Romania, is now worth EUR325 million compared with EUR820 million in 2008, and Complexul Energetic Rovinari was put at EUR238 million, compared with EUR655 million.
The decline in value overlaps with the medium-term investment obligations of these companies, as well as with three years of inability to agree on a way the thermoelectric plants and the entire energy sector should be reorganized.
At the end of 2008, while Varujan Vosganian was economy minister, the government decided to set up the National Energy Company, which should have been called Electrica at first. The new entity should have included the three unprivatized branches of Electrica, the three energy complexes in Oltenia (southern Romania) and Hidroelectrica. The company was put at EUR20-24 billion, and should have reached EUR800 million revenue by 2012 and stood chances of floatation.
Once the government changed and Adriean Videanu took office, plans to build a national champion were dropped, and a decision to create two energy giants, Electra and Hidroenergetica, instead was made. The two should have been operational this year. Electrica should have included Turceni, Rovinari and Craiova energy complexes, Nuclearelectrica, Societatea Nationala a Lignitului Oltenia (National Lignite Company Oltenia – SNLO) and part of Hidroelectrica.
Hidroenergetica should have included Electrocentrale Deva, Electrocentrale Bucuresti, Termoelectrica Paroseni and Termoserv Paroseni, most of Hidroelectrica and part of Compania Nationala a Huilei (National Bituminous Coal Company).
After Adriean Videanu left, the new economy minister, Ion Ariton, came up with a new reorganization plan, largely pressured by the International Monetary Fund. As a result, the Oltenia Energy Complex and the Hunedoara Energy Complex should be created. The former should include the three energy complexes in Oltenia (Turceni, Rovinari and Craiova along with SNLO) and the latter should comprise Electrocentrale Deva and Paroseni, plus four viable mines of Compania Nationala a Huilei. Both Oltenia and Hunedoara Energy Complexes should be privatized in 2012.
(English version by Loredana Fratila-Cristescu)