Electrica Group achieved a net profit of 106 million lei in the first half of 2023 (H1), on the background of a 14% increase in operating income, up to 6.7 billion lei. In S1 2022 the Group recorded a loss of 176 million lei.
In the first half of 2023, EBITDA at the Group level registered an increase of 535 million lei, reaching a value of 636 million lei.
According to a company statement, the impact was mainly generated by the operational performance of the distribution segment, due to the increase in energy revenues, generated by the increase in distribution tariffs, by approximately 20%, compared to the same period of the previous year, reduced effect of the decrease in distributed quantities by 8%.
The company obtained operational revenues of 6.74 billion lei, up 14% compared to the same period last year.
“The financial results obtained by the Electrica Group in S1, of which I mention an increase in EBITDA to 636 million RON and a net result, profit of 106 million RON, highlight not only the resilient strategy of the company, but also the indisputable dedication of our team in implements effective solutions in a fluctuating market environment, with a deep focus on the transition to green energy,” said Alexandru-Aurelian Chiriță, GM of Electrica.
The volume of electricity distributed was 8.28 TWh, down 7.9% compared to S1 2022. DEER (Distribuție Energie Electrică Romania, n.r.) serves approximately 3.9 million users, in an area covering approximately 40 % of Romania’s surface.
The volume of electricity supplied to the retail market was 3.88 TWh, down by 6.84% compared to S1 2022, against the background of the general trend of decreasing electricity consumption, the company states in the press release. Electrica Furnizare provides electricity for approximately 3.5 million places of consumption on the competitive market, as well as in the universal and last resort service regime. The company is one of the largest suppliers, with a total market share of 17.79% and 10.43% in the competitive regime, according to the latest ANRE report available, namely the one from April 2023.
In the distribution segment, in the six-month period ending on June 30, 2023, revenues from electricity distribution increased by approximately 394 million lei, or 25.3%, to 1.95 billion lei. Among the factors that generated this result was the favorable impact of approximately 193 million lei from the increase in distribution tariffs by an average of 20% compared to the first six months of 2022, a positive effect reduced by the decrease in the volumes of electricity distributed by approximately 8% .
Net profit on the distribution segment in S1 2023 was 68 million lei (compared to 393 million lei loss in S1 2022) and positive EBITDA of 529 million RON (compared to 165 million lei negative EBITDA in S1 2022). The net result improved significantly with the entry into force of the increased distribution tariffs, starting from April 1, 2023, the quoted source states.
In the supply segment, revenues from the supply of electricity and natural gas decreased by 138 million lei, or 3.6%, to 3.695 billion lei, the decline being mainly generated by the net effect of the increase in selling prices on the market with retail by 10% and reducing the amount of energy supplied to the retail market by 7%.