Transelectrica reported a disappointing RON 12.2m net profit for 1Q07, 26.7% below previous year’s result. EBIT came in at RON 25.6m, 39.7% lower y/y. The results are under Romanian Accounting Standards, IFRS releases being expected at the beginning of September. We expect the news to have a negative trading impact in the market although IFRS results could be somewhat better as the company will reevaluate its foreign exchange debt.