Electrica reported net profit of 620 million RON, up 11 percent in 2023

In 2023, EBITDA at Electrica Group level increased by 27.1 percent, respectively by RON 369.8 million, reaching a value of RON 1,732.7 million, compared to the value of RON 1,362.9 million achieved in 2022.

The EBITDA growth in 2023 was mainly driven by the operational performance of the distribution segment on the back of the increase in electricity distribution revenues by approximately RON 1,014.8 million, or 29.9 percent, to RON 4,411.5 million from RON 3,396.6 million in 2022.

The operating profit had an increase of 22.0 percent, reaching a value of RON 1,011.1 million due to the positive impact generated by the operating expense decrease of RON 688.6 million, impact offset by the negative impact of the operating income of RON 506.4 million..

The net result of the Electrica Group for 2023 (RON 620.4 million) slightly increase of RON 61.6 million (11.0 percent), result generated mainly by the performance of the distribution segment in the context of decreasing electricity costs to cover NL, as a result of the implementation of the MACEE centralized purchase mechanism, according to which the producers have the obligation to sell 80 percent of the available energy at a price of 450 RON/MWh, impact diminished by the increase in the volumes of electricity needed to cover losses in the network.

On the distribution segment, revenues increased by approximately RON 1,014.8 million, or 29.9 percent, to RON 4,411.5 million, from RON 3,396.6 million in 2022 mainly due to the increase in revenues recognized under IFRIC 12 (recognized based on the stage of execution of the works, according to the accounting policy regarding the recognition of income from construction contracts), to which was added the increase in distribution tariffs as well as the decrease in volumes of electricity distributed.

For the supply segment, the revenues from electricity and natural gas supply decreased in 2023 by approximately RON 905.8 million, or 11.1 percent, to RON 7,280.3 million from RON 8,186.0 million in 2022 due to the decrease of quantities of electricity supplied in 2023 by approximately 9.1 percent, due to the decrease in the customer portfolio, as well as the decrease in consumption at the national level (as an effect of electricity price increases but also energy efficiency measures implemented). For the supply segment, both in 2023 and in 2022, the effect of retail electricity prices was covered by subsidies received from the state authorities, as a result of the application of the electricity and natural gas price ceiling mechanism, as a result of the application of Ordinance 27/2022, with subsequent amendments and additions.

Alexandru Chirita, CEO of Electrica: “The Electrica Group has maintained a positive trajectory of its financial performance in 2023, with an EBITDA increase of over 27 percent and an 11 percent higher net profit compared to the previous year. It is a team effort and I thank all my colleagues for their sustained effort. Last year also brought us other important events, such as the acceleration of initiatives in the renewable energy production segment and the launch of the corporate strategy for 2024-2030. By adopting the new strategic directions, aligned with those at the national and European level, we will play an important role in the energy transition and contribute to achieving the objectives of sustainability, efficiency and innovation in the field. At the same time, we aim to ensure solid prospects for the development of the companies in the Group and to meet both the needs of our customers and the expectations of our investors and shareholders.”