Electrica Group reported a net profit of 558.8 million RON in 2022

The Electrica Group announced a consolidated net profit of 558.8 million RON in 2022, compared to a loss of 552.9 million RON in 2021. The result was generated, mainly, by the performance of the supply segment and, secondarily, by the application of the new regulations regarding technological own consumption, against the background of the increase in the unit price of electricity, as well as the existing deficit in the European Union.

Alexandru Chiriță, Director General of Electrica, said: “The financial performances recorded by the Electrica Group in 2022, an atypical one for the energy market, and not only, are the result of a continuous process of optimization and adaptation to economic and legislative developments.

In the next period, we will continue the process of adapting our activities and strategy to market conditions, at the same time counting on sustainable growth of the companies in the Group, so that we can ensure the financial stability and efficiency of all the business lines we own in portfolio”.

The revenues of the Electrica Group, in 2022, amounted to 10 billion RON, representing an increase of 39.4% compared to the previous year.

Supply segment:

• Revenues from the supply of electricity and natural gas increased by 2,413.6 million RON, mainly from the net effect of the increase in retail prices by 53% and a slight increase of 8.7% in the amount of energy supplied on the retail market;
• Revenues from subsidies amount to 2,687 million RON, without having a corresponding value in 2021, because of the application of the electricity and natural gas price ceiling mechanism, the accounts for the amounts owed being submitted in 2022 and for the differences from 2021.

Distribution segment:

• In 2022, revenues from the electricity distribution segment increased by approximately 665.8 million RON, or 24.4%, to 3,396.6 million RON, from 2,730.8 million RON in 2021, mainly from the effect generated by the 110.9 million RON increase in revenues recognized in accordance with IFRIC 12 (respectively the recognition of network investments in connection with concession agreements), to which were added the increase in distribution tariffs and the decrease in the volumes of distributed electricity, with a net impact of 554.9 million RON or 24.9%;
• Revenues from the production of intangible assets, in the amount of 989.3 million RON, are recorded in the year 2022 without having a corresponding value in the year 2021 and represent the capitalization of the additional cost with the purchase of electricity made in the year 2022, in order to cover the current CPT of the costs included in the tariffs approved by ANRE for the year 2022.

In the supply segment, the net profit in 2022 is 261 million RON (compared to the loss of 390 million RON in 2021) and positive EBITDA of 390.9 million RON (compared to a negative value of 439.7 million RON in 2021), mainly as a result of the increase in revenues against the background of the increase in electricity sales prices, in conjunction with internal efforts to mitigate risks regarding the purchase of energy required for resale and to control operational costs.

In the distribution segment, the result recorded in 2022 represents a net profit of 308 million RON and positive EBITDA of 1,017 million RON (372 million RON in 2021), a significant positive impact resulting from the capitalization of additional costs with the purchase of electricity to cover consumption technological property (CPT), in the form of revenues from the production of intangible assets in the amount of 989.3 million RON, for the period January 1, 2022 – December 31, 2022.