State-Owned Companies’ Financial Performance in 2023
In 2023, the total profit of state-owned companies reached 16.07 billion lei, showing a 10% decrease compared to the record level of 17.89 billion lei in 2022, as revealed by the analysis conducted by Profit.ro. The earnings of major state-owned companies, under the Government’s control, experienced a significant increase in 2022, more than tripling compared to the previous year, mainly driven by energy prices. The majority of profits usually come from energy companies such as Hidroelectrica, Romgaz, and Nuclearelectrica.
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Top 50 Most Profitable Companies in Romania
For 2023, despite a modest 4% increase in revenue to 92.43 billion lei for the 200 government-controlled companies, salary expenses have significantly risen,
The Cost of Electricity in Romania
In Romania, the cost of electricity has been steadily increasing, making it more expensive than in Western Europe. This is due to the fact that government-controlled companies have seen a 22% increase in spending on employee salaries, while only experiencing a 1.5% growth in personnel. Total expenses have risen by 7.7% to 80.2 billion lei.
Profit Disparities
Despite the overall increase in expenses, only a few state-owned companies are actually generating profits, while many others are operating at a loss. For example, in 2022, just three companies – Hidroelectrica, Romgaz, and Nuclearelectrica – were responsible for two-thirds of the total profits among government-controlled companies.
Future Outlook
It is clear that there is a need for greater efficiency and profitability among state-owned enterprises in Romania. With careful management and strategic reforms, these companies can become more competitive and help reduce the cost of electricity for consumers.
The Top Companies Owned by the State in Romania
Introduction
When it comes to annual reports of companies, the state-owned ones are always in the spotlight. In Romania, the biggest and most profitable companies in the state’s portfolio are mainly in the energy sector. The government is keen on ensuring that the representatives of the state have a say in the decision-making processes of these companies.
The Shift in Leadership
AFI Cotroceni, which was once the leader in the mall industry in Romania, lost its title by a narrow margin after just one year. This shift in leadership is significant in the modern retail market, with companies constantly striving to increase their revenue and market share.
Analysis of Infographic Data
The data presented in the annual reports only include companies in which the state has full ownership or a majority stake, and which were operational during the reference period. These companies have recorded some of the highest earnings in the history of the modern retail market in Romania.
Conclusion
The government’s intention to mandate state representatives in the general shareholders’ meetings or boards of directors of national companies, as well as companies with full or majority state ownership, shows a commitment to ensuring that profits are distributed responsibly. This move aims to maintain transparency and accountability in the management of state-owned enterprises.
Dividends and Contributions to the State Budget in 2023
In the State Budget Law, revenues from dividends for this year are estimated to be close to the earnings from the previous year, totaling around 7.4 billion lei, with an additional 511.7 million lei contributed by autonomous agencies. These amounts are similar to those collected in 2023.
Local Authorities’ Companies
Companies controlled by local authorities, numbering 1,001 for the year 2023, have collectively generated a gross profit of 676 million lei, compared to 33.4 million lei in 2022. Revenues have increased by 17%, reaching 20.4 billion lei, while the 13.3% rise in total expenses was driven, as with large companies, by salary increases.
In 2023, the 99,371 employees (about 5,300 more than before) received a total of 7.4 billion lei, marking a 20% increase.
Company Performance in 2023
In 2023, many companies have shown remarkable growth and success in various industries. From tech giants to small startups, businesses have navigated through challenges and emerged stronger than ever before.
Tech Industry
In the tech industry, companies like Apple, Google, and Microsoft have continued to innovate and dominate the market. With the release of new products and services, they have maintained their position as industry leaders and have seen significant increases in revenue and market share.
Healthcare Sector
The healthcare sector has also seen impressive results in 2023, with pharmaceutical companies developing groundbreaking treatments and vaccines. Companies like Pfizer and Moderna have played a crucial role in the fight against global pandemics and have been rewarded with increased profits and recognition.
Financial Services
Financial services companies have also performed well in 2023, adapting to changing market conditions and providing innovative solutions to their customers. Banks and investment firms have seen growth in their assets under management and have expanded their reach through digital platforms.
Conclusion
Overall, the results of companies in 2023 have been positive, with many businesses achieving growth and success in their respective industries. By embracing innovation and adapting to challenges, companies have set a strong foundation for future growth and development.