Although the operational result of the Electrica Group was positive, in the first half of this year the net profit decreased by 28%, under the influence of the “unfavorable dynamics of the supply market”, according to the group’s officials.
Thus, In the first six months of 2024, at the level of the Electrica Group, EBITDA recorded an increase of 6%, respectively of 35.0 million lei, reaching a value of 614.7 million lei, compared to the value of 579.7 million lei achieved in the first six months of 2023. The increase in EBITDA was mainly generated by the operational performance of the distribution segment, against the background of the increase in revenues from electricity distribution by approximately 292.0 million lei (or 15, 0%), to the value of 2,244.4 million lei, from 1,952.4 million lei in 2023.
The operating profit recorded is kept at the same level compared to the same period of the previous year, at a value of 322.8 million lei in 2024, respectively 322.5 million lei in 2023.
The net profit for the first six months of 2024 registered a decrease of 40.3 million lei, reaching the value of 102.1 million lei, from 142.4 million lei in the first half of the previous year.
“In the first half of the year, the Electrica Group recorded a 6% increase in EBITDA compared to the first half of 2023, being the result of solid strategies to optimize operations, especially in the distribution segment, where revenues increased by 15% , supported by the increase in regulated tariffs and the increase in the volumes of distributed electricity. The operating profit is similar to that of the 1st semester 2023, but the net profit registered a decrease as a result of the unfavorable dynamics of the supply market.
“We remain focused on the main priorities, investing in the modernization of the distribution infrastructure and, at the same time, having a strong focus on the implementation of measures aimed at stabilizing results and generating long-term sustainable growth,” said Alexandru Chiriță, CEO, Electrica.
In the distribution segment, revenues increased by approximately 292.0 million lei (or 15.0%), reaching 2,244.4 million lei, from 1,952.4 million lei in the first half of 2023, mainly due to the increase in tariffs . We remind you that in Q2 2023 the distribution tariffs increased by approximately 20% (26.1% in the North Muntenia area; 21.5% in the North Transylvania area and 10.9% in the South Transylvania area) compared to the tariffs in Q1 2023, through ANRE order no. 27/2023, and starting January 1, 2024, the tariffs were increased by ANRE Order 115/2023 by approximately 5.8% compared to those in Q2 2023. The positive effect of this increase was complemented by the increase in the volumes of distributed electricity by approximately 4.9%, as well as the increase in revenues recognized in accordance with IFRIC 12 (recognized on the basis of the stage of execution of works, according to the accounting policy on the recognition of network investments in connection with concession agreements). The contribution of the electricity distribution segment to the Group’s consolidated revenues is 29.6%.
Regarding the supply segment, revenues decreased in the first half of 2024 by approximately 757.2 million lei (or 20.5%), reaching 2,937.8 million lei, from 3,694.9 million lei in 2023. This variation was mainly generated by the decrease in electricity sales volumes by 3% and the decrease in the cost of electricity purchase by 49%, in the regulatory context explained below. The decrease in the purchase cost was manifested in the forward and Day-Ahead Markets (DAM). This reduction was also reflected in the decrease in revenues from the sale of electricity and revenues from subsidies (by approximately 74% – electricity), because, according to GEO 27/2022, with subsequent amendments, the final price billed to customers is represented by the minimum value between the price capped, the contract price and the final price calculated with the cost plus method (respectively the purchase cost realized + the supply component). The contribution of the supply segment to the Group’s consolidated revenues is 69.7%.
