Transelectrica reports net profit of 264 million RON, up 63 percent in the first semester

Transelectrica announced its financial results for the first six months of 2024, with a net profit of 264 million RON, a growth of 63 percent compared to the same period of last year.

The segment of allowed-profit activities recorded a positive result in the amount of 317 million RON in H1 2024, an increase compared to the result in the amount of 218 million RON achieved in H1 2023, considering that operating revenues increased by 21 percent (212 million RON), correlated with an increase in expenses (including depreciation) by 15 percent (113 million RON).

The increase in operating revenues (RON 1,205 million in H1 2024 compared to 993 million RON in H1 2023) was mainly influenced by the increase in the volume of charged electricity (1.7 percent) calculated at the tariffs approved by ANRE, revenues from OTC transactions (+48.7 million RON) and OTC capitalization in the amount of 23.9 million RON (non-monetary), revenues from breakdown aid, as well as from the recording of certain conjunctural revenues from other operating revenues (+105 million RON).

The increase in other operating income is mainly determined by the registration in the segment of income from compensations, fines and penalties of the amount of 95 million RON, as a result of legal recovery, according to Civil Judgment no. 6169/2023, pronounced on December 20, 2023, by the ICCJ – Administrative and Tax Litigation Section and communicated to the Company on May 15, 2024, of certain amounts (additional payment obligations established by Tax Assessment Decision no. F-MC 439/30.06.2017) enforced in 2017 by ANAF, based on the enforceable title no.13540 /22.08.2017.

The interconnection revenues recorded a decrease from 181 million RON in H1 2023 to 102 million RON in H1 2024 corresponding to the level of utilization of available interconnection capacity by traders on the electricity market. The interconnection capacity allocation market is fluctuating, with prices evolving in line with demand and the need of electricity market participants to purchase interconnection capacity.

Operating expenses (including depreciation) increased by 15 percent (888 million RON in H1 2024 compared to 775 million RON in H1 2023), whereas the costs of energy purchase to cover own technological consumption amounted to 296 million RON, 13 percent higher (+35 million RON) compared to H1 2023.

Following the provisions of GEO no. 153 /2022 (for the period January-March 2024) and GEO 32/2024 (for the period April-June 2024) Transelectrica purchased electricity to cover 75 percent of the quantity of the OTC forecast validated by the Centralized Electricity Purchase Mechanism (MACEE), at a regulated purchase price, and the average price of the energy purchased from the DAM during the period January – June 2024 was lower than the price of the similar period of 2023, remaining however higher than the price recorded in the previous years.

The segment of zero-profit activities recorded a negative result in H1 2024 in the amount of 50 million RON, an increase of +9 million RON compared to the negative result recorded in H1 2023. The regulatory framework specific to zero-profit activities contains regularization mechanisms that ensure the compensation of the excess or shortfall of revenues compared to the level of expenses necessary to carry out the respective activities.

The investment expenses in H1 2024 amounted to 236.98 million RON, 16 percent higher than the investment expenses in H1 2023 (203.44 million RON).

The first semester of 2024 recorded a 2 percent increase in net domestic consumption and an 8 percent decrease in net energy production. In January 2024 the electricity consumption at the NES level registered an increase of approximately 5 percent (influenced by lower temperatures), the increase of approximately 3 percent in June was also influenced by temperature (increased values), the national average value of 22°C, registering a positive thermal anomaly compared to the monthly norm of 3.1°C (the monthly norm 1991 – 2020 is 18.9°C). The months of April and May registered decreases, (approx 1.7 percent in April and 3.88 percent in May 2024, respectively).