Electrica reports net profit of 302.4 million RON, down 38 percent in the first 9 months

Electrica Group recorded in the first nine months of this year a net profit of 302.4 million RON, down by more than 38 percent compared to the value of 490.5 million RON recorded in the same period of 2023.

According to a statement from the group, the decrease was mainly generated by the negative effect of 438.3 million RON from the variation in the net result of the supply segment (from a profit of 78.5 million RON in 9 months from 2023 to a loss of 359.8 million RON at 9 months 2024), partially offset by the positive effect of 274.6 million RON from the variation of the distribution segment, respectively from a profit of 377.2 million RON at the end of September last year to a profit of 651.8 million RON in the similar period of 2024.

At the level of the Electrica Group, EBITDA recorded a value of 1.062 billion RON in the first nine months of 2024, down 10.5 percent (- 124.5 million RON), compared to 1.186 billion RON in the first nine months of of 2023. The largest share in the EBITDA variation was the decrease in revenues and other revenues in the supply segment with an unfavorable impact in the amount of 2.531 billion RON (of which subsidies 1,718.6 billion RON – values ​​to be recovered from the Ministry of Energy as a result of the application of electricity price caps) offset by the favorable impact from the decrease in the cost of purchasing electricity in the same segment in the amount of 2,204 billion RON.

The operating profit recorded a value of 623.7 million RON, down 21.9 percent compared to the same period last year, mainly due to the performance of the supply segment.

“The consolidated results for the first nine months of this year reflect the complexity of a dynamic economic and regulatory context, but also our firm commitment to respond to these challenges with responsibility and strategic vision. We have stepped up investments and made significant progress in implementing our strategy. In particular, the expansion of the renewable energy portfolio and the completion of the Vulturu project demonstrate our commitment to the energy transition. We remain dedicated to the objective of streamlining and expanding operations, strengthening the regulated asset base and increasing the company’s resilience in the face of market challenges. The increase in the volumes of distributed energy and the significant investments in the modernization of the infrastructure demonstrate our determination to offer high quality services for our almost 4 million consumers”, said Alexandru Chiriţă, Electrica CEO.

In the distribution segment, revenues increased by approximately 255 million RON (+ 8.1 percent), to 3.390 billion RON, from 3.135 billion RON in the first nine months of 2023, mainly from the increase in tariffs.

The group specifies that, starting from January 1, 2024, the tariffs have increased by approximately 6.8 percent compared to those in Q2 2023 (by ANRE Order 115/2023), a positive effect to which is added the increase in the volumes of electricity distributed by approximately 5.1 percent. The contribution of the electricity distribution segment to the Group’s consolidated revenues is 29.2 percent.

Regarding the supply segment, in the first nine months of 2024, revenues decreased by 15.2 percent, to 4.531 billion RON, this variation being mainly generated by the decrease in the purchase cost by approximately 41 percent (which determines revenues from lower subsidies and the modification given by the new ANRE guide dated July 29, 2024 regarding the new calculation of the amounts to be recovered from ceilings – subsidies) and the decrease in electricity sales volumes by 2 percent. The contribution of the supply segment to the Group’s consolidated revenues is 70.2 percent.

On September 30, 2024, the amount of subsidies to be collected was estimated at 1.392 billion RON (December 31, 2023: 2.614 billion RON). Of the amount of subsidies to be collected, the amount of 468.3 million RON represents uncollected claims submitted to the state authorities – respectively 212.6 million RON from the Ministry of Energy and 255.7 million RON from the National Payment and Social Inspection Agency (ANPIS) -, and the amount of 924 million RON represents requests that have not yet been submitted to the state authorities until September 30, 2024.