Acasă » Electricity » Electrica: Profit before tax increases by over 13% at Group level

Electrica: Profit before tax increases by over 13% at Group level

19 November 2023

In the first nine months of 2023, EBITDA at the level of the Electrica Group registered a solid increase of 13.5%, respectively 148.8 million lei, reaching a value of 1,252.9 million lei, compared to the value of 1,104, 1 million lei made in the first nine months of last year.

Also in this interval, the volumes of distributed and supplied energy were lower by 6.2% and 10%, respectively, compared to the similar period last year. Operating profit recorded a smaller reduction of 2.7%, amid a 3.2% drop in operating income (mainly as a result of the tariff increase), combined with the implementation of MACEE and the effort to keep costs under control.

Electricity purchase expenses decreased by 873.5 million lei (or 11.3%), to 6,854.0 million lei, compared to 7,727.7 million lei in the comparative period, mainly due to the strong decrease in by an average of 47.9%, of electricity costs to cover the CPT for the distribution segment, as a result of the implementation of the MACEE, to which is added the unfavorable impact from the increase in the purchase price of electricity on the supply segment, by an average of 20% .

Operating expenses were reduced by 3.3% compared to the same period last year, and the net profit in the first 9 months of this year registered a reduction of 115.4 million lei (21.6%), the main reason being the increase the negative impact of the financial result, from 103.3 million lei in 2022, to 216.8 million lei in 2023 (an increase of 110%). The significant increase in interest costs related to the year 2023, compared to the year 2022, is a direct effect of the failure to collect within the terms established by law the amounts from the Ministry of Energy and the National Agency for Payments and Social Inspection, as a result of the application of the price ceiling mechanism for electricity and natural gas, according to the applicable legislation.

“Consistently achieving favorable financial performance, even in the context of rapid changes in the energy sector, once again underlines the extraordinary adaptability and deep strategic vision of our team. The success of the Electrica Group is highlighted by the 13.5% increase in EBITDA, which is the most convincing sign of our ability to implement effective strategies to increase profitability and optimize operations. The consistent achievements we have recorded since 2022, and which continue in 2023, are the result of constant adaptation, prudent risk management and the successful application of our growth strategies, which is reflected in a positive evolution and sustainable for the Electrica Group,” affirms Alexandru Chiriță, Electrica General Manager.

“Before the end of this year, we will present the new medium and long-term strategy of the Group, which will include the same high dose of resilience and flexibility, focusing not only on the adaptation of the main areas of activity to the complex environment in which we operate, but also on the exploitation of renewable sources and on the principles of sustainability. Thus, we want to strengthen our leading position in the market and achieve results that meet the expectations of our investors.”

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