Electrica Group recorded a consolidated net profit of RON 315 million in the first nine months of 2018, which represents an increase of RON 220 million compared to the same period of 2017 and an achievement of 124% of the net consolidated profit budgeted for the year 2018. The increase in Q3 2018 is mainly provided by the results recorded on the supply segment, writes a press release from the group.
The energy margin has significantly improved, notes Electrica, “based on more favorable market evolution in Q3 2018 compared to Q3 2017, the improvement of purchasing and selling strategies for energy and the review of risk policies, in order to ensure a better balance between profitability and market share. Last year’s losses in the regulated market were partly compensated in the current year, contributing to margin increase for the regulated segment in this period”.
Based on these evolutions, EBITDA increased by RON 297 million or 73% yoy, and the Group Operating profit (EBIT) increased by RON 268 million or 232% yoy.
“On the supply segment, we have managed to identify a balance between profitability and market share”, said Corina Popescu, CEO Electrica SA. “This year, some stabilization of the energy purchase prices was noticeable, after we experienced the major imbalances in the energy market in the past year, but in the last period, we notice a significant upward trend. There are still elements that point the need to improve legislation and to correct some market behaviors.”
Corina Popescu also said that the group will continue “our very ambitious investment program in our distribution networks”, as well as the efforts to optimize and streamline our business, “our priority being to improve the services that our 3.7 million customers benefit from, as well as ensuring sustainable financial results for our shareholders”.
The group maintains its program to optimize the activities started in 2017, oriented towards operational efficiency and results. The value of investments commissioned in Q3 2018 is by more than 6% higher than in Q3 2017, supported by the investment processes’ redesign and the maintenance activities’ reorganization, with the allocation of a higher number of own forces for investment activities.
During Q3 2018, Electrica Group distributed approximately 13.2 TWh of electricity to approximately 3.7 million users. Electrica Furnizare has a market share of 17.04%. It is the Romanian market leader on the regulated market, with a market share of 44.37%, whilst on the competitive market Electrica Furnizare has a market share of 8.85% (according to the ANRE report from August 2018).
In a separate press release, Electrica announced the resignation of the Chair of the Board of Directors, Elena Dascălu, following her nomination by the Romanian Parliament as First Vice President of the Financial Supervisory Authority, starting with 14 November 2018.