Electrica reports net profit of 127.7 million RON in Q1

In the first three months of 2024, EBITDA at Electrica Group level increased by 170 percent, respectively by RON 252.1 million, reaching a value of RON 400.8 million, compared to the value of RON 148.7 million achieved in the first three months of 2023. The EBITDA growth was mainly driven by the operational performance of the distribution segment on the back of the increase in electricity distribution revenues by approximately RON 273.6 million, (or 31.9 percent), to RON 1.13 billion from RON 857.0 million in 2023.

The operating profit had an increase of RON 227.8 million, reaching a value of RON 249.3 million due to the positive impact generated by the operating expense decrease of RON 1.16 billion RON.

The net result of the Electrica Group for 2024 increased of RON 170.7 million, reaching a value of RON 127.7 million from a net loss of RON 43.0 million from the first quarter of the previous year. This result is generated mainly by the performance of the distribution segment in the context of decreasing electricity costs to cover the network losses, 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 273.6 mn. (or 31.9 percent) to RON 1,130.6 mn., from RON 857.0 mn. in 2023, mainly due to the effect of, the significant increase in distribution tariffs due to ANRE order no. 115/2023 in which distribution tariffs were higher by approx. 6.8 percent compared to the last tariffs increased in Q2 2023 for the year 2024 as an intermediate year between RP4 and RP5, as well as the fact that starting Q2 2023 according to GEO 28/2023 distribution tariffs were higher by approx. 20 percent (26.1 percent MN area; 21.5 percent TN area and 10.9 percent TS area) compared to the corresponding tariffs in Q1 2023, a positive effect to which is added the increase of electricity volumes distributed by approx. 3.4 percent and also the increase in revenues recognized in accordance with IFRIC 12 (recognized on the basis of the stage of completion of works, in accordance with the accounting policy on the recognition of network investments in connection with concession agreements). The contribution of the electricity distribution segment to the Group’s consolidated revenue is 27.0 percent.

„The financial performance recorded by the Electrica Group in the first quarter of this year demonstrates our team’s ability to adapt and progress in a dynamic economic environment. EBITDA reached 400.8 million RON, marking an increase of 170 percent, highlighting our operational and strategic efficiency. The net profit reached 127.7 million RON, with a notable improvement of 170.7 million RON, underscoring our commitment to generating value for shareholders and consolidating our market position. Investments continue to be a priority across the entire Group, with a strong focus on the distribution area, reflected in the 7.7 percent increase in the value of completed works. These investments are essential for both the modernization and development of the infrastructure we manage and the provision of high-quality services for our customers, as well as for supporting the transition to increasingly sustainable energy sources. This year, we mark the 10th anniversary of our admission to trading, a milestone in the company’s evolution. It has been a decade marked by significant achievements and major transformations, and current performance gives us confidence that we are on the right path to continue the positive trend in the future,” said Alexandru-Aurelian Chirita, General Director of Electrica S.A.