Electrica Group posts 190 million RON net profit, up by 74 percent in first semester

Electrica Group has posted a consolidated net profit of 190 million RON in the first half of 2020, registering an increase of 81 million RON, respectively 74.2%, compared to the same period of the previous year.

Consolidated EBITDA reached 486 million RON, being 127 million RON higher than in H1 2019. The increase in EBITDA was mainly generated by the supply segment, which recorded an increase in EBITDA of 135 million RON compared to the level of S1 2019, mainly due to the lower costs of electricity acquisition, corroborated with the increase of revenues.

The revenues of the Electrica Group, in H1 2020, amounted to RON 3,200 million, representing an increase of 3.2% compared to the same period of the previous year.

In the supply segment, revenues were higher by 2.9%, in the context of the increase in electricity sales prices on the retail market by 3.9%, but also the increase in revenues from green certificates, the latter having a neutral impact. in the supply margin.

Regarding the distribution segment, revenues were 3.6% higher, mainly as a result of the increase in distribution tariffs, which offset the negative impact of the reduction in the amount of electricity distributed.

Consolidated costs for the purchase of electricity decreased by 6.8%, to RON 1,812 million, in the first half of 2020. This evolution was generated by the supply segment, by decreasing by 8.9% the cost of electricity. purchased for the supply business, mainly as a result of the reduction of electricity purchase prices in the regulated segment.

The favorable effect generated by the evolution of the supply segment was slightly reduced by the increase of electricity acquisition costs to cover network losses related to the distribution segment, by RON 10 million, due to the average purchase price of electricity actually achieved for own consumption. technological in H1 2020, compared to H1 2019.

Corina Popescu, General Manager of Electrica SA, said: “The implementation of the business strategy we adopted in the second half of last year began to yield results, these being already visible in the first half of 2020. In addition to ensuring solid prospects for development of the company, we were able to respond quickly to current challenges. We have consolidated our status as the largest investor in energy infrastructure, we have initiated the expansion of the value chain of electricity, especially in the area of ​​production from renewable sources, which helps us achieve important synergies and we have accelerated transformation and optimization projects. from the Group.

The Group’s companies are solid both operationally and financially, which is also evident from the financial results recorded in the first half of 2020. The increase of approximately 74% in net profit compared to the same period of the previous year represents a remarkable performance in the current context.

In a period full of uncertainties, we have provided a safe environment for our employees, customers and partners, managing to adapt the business to the new conditions.”