Electrica recorded net profit of 106 million RON in first half of 2023

Electrica published its financial statements for the first half of the year. The company recorded a net profit of 106 million RON, a significant improvement compared to the loss of 176 million RON in the first six months of 2022.

Alexandru Chirita, General Manager of Electrica SA said: “The financial results achieved by Electrica Group in H1, including an increase in EBITDA to 636 million RON and a net profit of 106 million RON, not only highlight the company’s resilient strategy but also the undeniable dedication of our team in implementing efficient solutions in a volatile market environment, with a deep focus on transitioning to green energy.

Our people are at the heart of this transition, serving as the source of innovation and adaptation. In a fluctuating economic and legislative environment, we are strengthening our position as a stable and resilient entity, always ready to adapt to the challenges of an evolving market. By reinforcing our financial foundation and optimizing operational efficiency in all our business domains, we aim to strengthen and expand our portfolio focused on renewable energies. I express my deepest gratitude to each member of the team, our customers, investors, and partners, whose contributions have been essential in defining and shaping the direction we are pursuing.”

In the first half of 2023, EBITDA at the level of the Electrica Group registered an increase of RON 535 million, reaching a value of RON 636 million, compared to a value of RON 101 million achieved in H1 2022.

The impact was mainly generated by the operational performance of the distribution segment, due to: increase in income from energy, generated by the increase in the distribution tariffs by an average of 20% (26.1% MN area; 21.5% TN area and 10.9% TS area), compared to the first six months of 2022, a positive effect reduced by the decrease in the volumes of electricity distributed by approx. 8% (in line with the decrease in national consumption); decrease in the costs incurred with the purchasing of electricity for covering network losses, due to the implementation of the centralized purchase mechanism MACEE, as well as the ongoing concern to keep operational costs under control.

The operational performance for the distribution segment which significantly improved in the second quarter of 2023, EBITDA registered in the first quarter on this segment was RON 112 million and in the second quarter it reached RON 418 million, representing an increase of approximately RON 306 million in the second quarter of 2023 alone.

During the six months period ended 30 June 2023, revenues from the electricity distribution segment increased by RON 394 million, or 25.3%, to RON 1,952 million, from RON 1,558 million in the same period of the previous year.

Revenues from the supply of electricity and natural gas decreased by RON 138 million, or 3.6%, to RON 3.695 million, from RON 3.833 million in the first half of 2023, mainly due to the net effect of increasing retail prices on the retail market by 10% and reducing the amount of energy supplied to the retail market by 7%.

The revenues from subsidies amount to RON 1.802 million in H1 2023, an increase by RON 591 million compared to the same period of the previous year, as a result of the increase in the electricity purchase prices and the application of the capping mechanism according to GEO 119/2022, with subsequent additions and amendments.