In 2023, at the level of the Electrica Group, profit before taxation EBITDA recorded an increase of 27.1%, respectively 369.8 million lei, reaching a value of 1,732.7 million lei, compared to the value of 1,362.9 million lei completed in 2022.
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 1,014.8 million lei (or 29.9%), to the value of 4,411.5 million lei, compared to 3,396.6 million lei in 2022.
The operating profit registered an increase of 22.0%, up to the value of 1,011.1 million lei, due to the positive impact of 688.6 million lei generated by operational expenses, an impact diminished by the decrease in operating income by 506.4 million lei lei.
The net profit for the year 2023 registered an increase of 61.6 million lei (11%). The result is generated mainly as a result of the performance of the distribution segment, in the context of the decrease in electricity costs for CPT coverage, as a result of the implementation of the MACEE centralized procurement mechanism. According to it, the producers have the obligation to sell 80% of the available energy at a price of 450 lei/MWh, impact diminished by the increase in the volumes of electricity needed to cover losses in the network.
“Electrica Group has maintained the positive trajectory of financial performance since 2023, with an increase of over 27% in the EBITDA value and an 11% higher net profit compared to the previous year. It is a team effort and I thank all my colleagues for sustained effort.
Last year brought us other important events, such as the acceleration of initiatives in the renewable energy production segment and the launch of the corporate strategy for the period 2024-2030. By adopting the new strategic directions, aligned with those at the national and European level, we will play an important role in the energy transition and contribute significantly to achieving the objectives of sustainability, efficiency and innovation in the field. At the same time, we aim to ensure solid prospects for the development of the companies in the Group and to respond both to the needs of our customers and to the expectations of our investors and shareholders,” said Alexandru Chiriță, CEO, Electrica.
In the distribution segment, revenues increased by approximately 1,014.8 million lei (or 29.9%), to 4,411.5 million lei, from 3,396.6 million lei in 2022, mainly from the effect generated by the increase revenues recognized in accordance with IFRIC 12 (recognized based on the stage of execution of works, according to the accounting policy regarding the recognition of revenues from construction contracts), to which the increase in distribution tariffs and the decrease in the volumes of distributed electricity were added.
In the supply segment, revenues decreased in 2023 by approximately 905.8 million lei (or 11.1%), to 7,280.3 million lei, from 8,186.0 million lei in 2022, this variation being generated, mainly, by the decrease in the amount of electricity supplied by approximately 9.1%, as a result of the decrease in the customer portfolio, as well as the decrease in consumption at the national level (effect of electricity price increases, but also implemented energy efficiency measures). For the supply segment, both in 2023 and 2022, the effect of retail electricity prices was covered by subsidies received from the state authorities, as a result of the application of the electricity and natural gas price ceiling mechanism, in following the application of Ordinance 27/2022, with subsequent amendments and additions.
On December 31, 2023, the estimated amount for subsidies, which was to be received from the Ministry of Energy, amounted to 2,595.6 million lei (December 31, 2022 – 1,280.8 million lei), and from the County Payments Agency and Social Inspection was 19.0 million lei. Of the amount of subsidies to be collected, the amount of 1,528.7 million lei represents uncollected claims submitted to the state authorities.
Worth noting for the evolution in terms of financial performance 2023 vs. 2022 is the fact that, in 2023, the capitalized CPT was approximately 18.6 million lei compared to 2022, when a value of 989.3 million lei was recorded, the Electrica Group managing to reduce the additional costs regarding the purchase of electricity for CPT on the distribution segment.
In addition to lower CPT costs, operational performance was also supported by reductions in other operational costs and higher reactive power revenues.
