FINANCIAL EQUILIBRIUM IN THE ENERGY INDUSTRY

Diana Andone (), Gheorghe Fatacean (), Paul Minteuan () and Nicolae Petric ()
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Diana Andone: Babes-Bolyai University
Gheorghe Fatacean: Babes-Bolyai University
Paul Minteuan: Babes-Bolyai University
Nicolae Petric: Babes-Bolyai University

Annals of Faculty of Economics, 2017, vol. 1, issue 1, 555-562

Abstract: The development in the energy market has shown that a large number of companies in this area are often confronted with the issue of investment, the issue of the purchase price of energy raw materials (oil, coal and gas), with problems related to the distribution of electricity to consumers, but especially with the problem related to the collection of energy bills. The global financial crisis has also affected the energy sector and the banking sector and, with the outbreak of the sovereign debt crisis, the crisis has also affected the budget sector. Against the background of the exit of the economy from the crisis, the energy industry has revived, although the problems related to the operational activity and the investment activity remained almost unchanged. The main concern of big companies in the energy industry is to permanently secure electricity consumers on the backdrop of companies’ stability and equilibrium. That is why our analysis will focus on comparing the results of the financial equilibrium indicators between two major energy companies in Europe, namely Transelectrica SA and Enel SpA during the pre-crisis, crisis and post crisis periods. As component of the entity analysis, the financial position is a constant concern of managers and aimes to ensure the necessary funds for the operational activity. In the industry in general and in energy industry in particular, the cycle of recovery is slowed down by the specific activity of these companies. That is why in the paper we analyze the equilibrium of two energy companies from Romania and Italy.

Keywords: earnings; liquidity; solvency; working capital (search for similar items in EconPapers)
JEL-codes: D04 D22 D92 (search for similar items in EconPapers)
Date: 2017
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