Electrica reached net profit of 321.8 million RON, up by 7.8 percent in 2021

In 2021, Electrica obtained an individual net profit of RON 321.8 million, increasing by 7.8 percent compared to the level of 2020, and the net result of the Electrica Group was a loss of RON 553 million, registering a decrease of RON 941 million, compared to the profit of RON 388 million realized in the previous year. The decrease was mainly due to the accelerating increase in electricity procurement costs.

The gross dividend proposed to be distributed from the individual profit of 2021 registered by Electrica is in the amount of 0.45 RON / share. The total gross value of the dividends is RON 152.8 million, corresponding to a percentage of 50 percent of the individual net profit after the distribution to the legal reserve, established on the basis of the audited individual financial statements of Electrica for 2021.

The revenues of the Electrica Group, in 2021, amounted to RON 7,179 million, representing an increase of 10.4 percent compared to the previous year.

In the supply segment, revenues were higher by 15.1 percent, in the context of the evolution of electricity sales prices on the retail market of + 12.5 percent, the increase of the amount of energy supplied on the retail market by 1 percent, but also the increase in revenues from green certificates, the latter having a neutral impact on the supply margin.

In terms of the distribution segment, revenues were 0.7 percent lower, mainly due to the decrease in revenues related to the construction services of electricity networks from concession agreements, negative impact offset by the increase in distribution tariffs and volumes of distributed electricity, by 5.7 percent.

Consolidated costs for the purchase of electricity and natural gas increased by 45.8 percent, to RON 5,695 million, in 2021.

In the supply segment, the costs of purchased electricity and natural gas increased by RON 1,451 million, or 36.7 percent, compared to 2020. This variation represents the effect of the significant increase in 2021 of the purchase prices of electricity, increase in both the competitive and the universal service and last resort (FUI) segment, which in 2020 was a regulated segment and was influenced by the recovery, in the form of positive corrections, of previous years, when the tariffs approved by ANRE were below the actual purchase price of electricity, an effect that did not exist in 2021.

In the distribution segment, the costs of purchasing electricity to cover technological losses from networks (CPT) increased by RON 393 million, or 58.7 percent, also due to the significant increase in electricity purchase prices. The effect of the increase in electricity purchase prices for CPT was felt mainly in the third and fourth quarters, when the increase in prices was 36 percent and 167 percent respectively compared to the same period in 2020.

Corina Popescu, General Manager of Electrica said: “The entire energy market faces crucial challenges both at national and European level. The accelerated increase in energy purchase prices recorded in the second half of 2021, but also the uncertainties generated by the changes in the legislative framework have resulted in a significant deterioration of the financial situation of distribution operators, but especially of electricity supply companies. and natural gas. The measures taken by the authorities during this difficult period have led to additional costs for companies in the field, exposed to extremely high market prices, with a direct impact on the operational cash flow, which jeopardizes their financial viability.

Aware of the sensitivity of the context generated by the volatility of the energy market, at the level of the operating companies within the Electrica Group, we made major efforts to ensure continuity of supply and to strengthen our resilience to future shocks. Despite the difficulties encountered in the process of recovering, in a timely manner, the real cost of purchasing energy, energy suppliers have pre-financed, since November, the complex scheme of offsetting bills and capping prices for customers. The immediate effect was a significant increase in the working capital financing requirement for the Group’s operating companies. In this market context, we have adopted a series of measures to prepare the Electrica Group to act agilely in a period marked by volatility and uncertainty, in order to face the challenges from the internal and external environment.”