Electrica Group achieved a net profit of 72 million RON in the first nine months of 2021
The Electrica Group obtained, in the first nine months of 2021, a consolidated net profit of 72 million RON, compared to 396 million RON in the same period of the previous year. The decrease was mainly due to the significant increase in electricity procurement costs.
The total revenues of the Electrica Group, in the first nine months of 2021, amounted to 5.1 billion RON, representing an increase of 5.4 percent compared to the same period of the previous year.
In the supply segment, revenues were higher by 10.4 percent, mainly due to the increase in electricity sales prices in the retail market, while in the distribution segment, revenues decreased by 4.8 percent, mainly from the net effect of the reduction in revenue recognized in accordance with IFRIC 12, a variation partially offset by the increase in revenue from distributed electricity.
The consolidated EBITDA reached the value of 475 million RON, decreasing by 354 million RON compared to the same period of the previous year.
The reduction in EBITDA is mainly determined by the evolution of the supply segment, amid the increase in electricity purchase prices.
Consolidated costs for the acquisition of electricity and natural gas increased by 23.4 percent, to 3.4 billion RON, in the first nine months of 2021. This evolution was generated mainly by the supply segment, where costs increased by approximately 588 million RON, or 25.5 percent, mainly from the increase in electricity purchase prices. This increase occurred both in the competitive segment and in the universal service and provider of last resort (FUI) segment, which in 2020 was a regulated segment and was influenced by the recovery, in the form of positive corrections, of some acquisition losses from previous years, when the tariffs approved by ANRE were below the actual purchase price of electricity, an effect that did not exist in 2021. There was also a 23.2 percent increase in the amount of electricity purchased in the competitive segment, compared to the same period last year. This effect was felt especially in the third quarter of the current year, when the increase in purchase prices was 47 percent compared to Q3 2020.
Regarding the distribution segment, the evolution of electricity acquisition costs to cover network losses had an unfavorable effect on consolidated costs, of 60.5 million RON or 12.9 percent, mainly due to the increase in energy acquisition prices. electricity (negative effect of 45.4 million RON), but also as a result of the larger volumes of electricity needed to cover network losses (negative impact of 15.1 million RON). The effect of the increase in electricity purchase prices for CPT was felt mainly in the third quarter, when the increase in prices was 36 percent compared to the same period in 2020.
A non-recurring favorable effect in the financial results for the first 9 months of 2020 is the reversal of some adjustments for the depreciation of uncertain receivables at Group level, amounting to approximately 105 million RON, after making VAT adjustments for Oltchim, a bankrupt debtor.
Corina Popescu, General Manager of Electrica SA: “The Romanian energy market registered in the third quarter of this year, similar to the European markets, a steep increase in energy prices, of approximately 50 percent compared to the same period last year. The volatile environment of this exceptional period is an important risk factor for both energy suppliers and distributors. We have considered all potential scenarios, we have identified solutions to ensure continuity of supply and to strengthen our resilience to future shocks, we have met our commitments to customers, but the accumulation of significant additional costs, especially from energy acquisition, it also had an impact on the financial results for this quarter.
During this complicated period, we continued the efforts to implement the growth strategy of the Electrica Group, including by diversifying the financing sources of important projects in the renewable energy production sector, energy efficiency projects, as well as investments in the distribution segment. We continue to be concerned with increasing operational performance and improving the services provided, while optimizing costs.
In the current epidemiological situation, which prolongs not only the public health crisis, more predictability is needed, at least for the next period, especially in the context of the implementation of complex mechanisms for offsetting invoices and capping prices for certain categories of customers“.