Electrica Group announced a profit of 396 million RON, up 146 percent in the first 9 months

Electrica Group has posted a consolidated net profit of 396 million RON in the first 9 months of 2020, registering an increase of 235 million RON, respectively 146.2 percent, compared to the same period of the previous year.

Consolidated EBITDA reached the value of 829 million RON, being higher by 280 million RON compared to the value at 9 months of 2019. The increase of EBITDA is mainly determined by the cumulative impact of the evolution of the supply segment, which registered an increase, at the level of EBITDA, of RON 130 million compared to the 9-month level of 2019, mainly due to lower electricity acquisition costs, corroborated with the increase in revenues, and the reversal of adjustments for the impairment of uncertain receivables at Group level, in the amount of approximately 105 million RON, after adjusting the uncollected VAT from the Oltchim customer.

The revenues of the Electrica Group, in the first 9 months of 2020, amounted to 4.7 billion RON, representing an increase of 3.7 percent compared to the same period of the previous year.

In the supply segment, revenues were higher by 4.3 percent, in the context of the increase in electricity sales prices on the retail market by 3.2 percent, but also the increase in revenues from green certificates, the latter having a neutral impact. in the supply margin.

Regarding the distribution segment, revenues were 2.1 percent higher, mainly as a result of the increase in distribution tariffs, which offset the negative impact of the reduction in the amount of electricity distributed.

“The results recorded by the Electrica Group in the first nine months of this year, a complicated one for everyone, prove that the adopted business model works. We were able to adapt quickly to the unprecedented situation created by the health crisis, which had a major impact on the evolution of the global economy, and beyond implementing the necessary measures for business continuity, we identified opportunities for a sustainable evolution of the company,” said Corina Popescu, General Manager of Electrica.

“The current context has not necessarily led to a change in priorities, but rather a need to focus efforts to accelerate their implementation. From this perspective, we managed to accelerate the major transformation projects planned for the entire Group, in all main business directions: distribution, supply and services. In addition to internal optimization and cost efficiency, we have become the largest investor in electricity distribution infrastructure in Romania and have continued to develop the business portfolio in both the supply and service areas, including by expanding the production area. from renewable sources. The merger projects of the three distribution companies in the Group, as well as the two energy services companies, will generate synergies that will add value to all stakeholders.”