Electrica reports net profit of 390 million RON in 2024

In 2024, the net result of the Electrica Group was a profit of RON 390 million, a result generated mainly by the performance of the distribution segment, recording a profit of RON 723.7 million in 2024, compared to the net profit recorded in 2023 in the amount of RON 637.9 million in the context of the increase in tariffs by 6.8% compared to the last adjusted tariffs starting with April 2023, as well as the increase in distributed electricity volumes by 4.2%.

For the supply segment, both in 2024 and in 2023, the effect of retail electricity prices was covered by subsidies received from the state authorities, as a result of the application of the price capping mechanism for electricity and natural gas, as a result of the application of Emergency Ordinance 27/2022, with subsequent amendments and completions.

The implementation of these schemes and the settlement mechanism of the amounts granted as support to customers, ex post from the state budget to electricity suppliers, have generated cash flow constraints, as well as uncertainties regarding the full recovery of the respective amounts by suppliers. In this context, Electrica Furnizare has adapted its medium and long-term strategy, so as to manage the impact of these measures on the company’s activities in a responsible and sustainable manner in the context of a regulatory framework that has undergone numerous successive and major changes in recent times.

Revenues from electricity and natural gas supply decreased in 2024 by approximately RON 954.7 million., or 13.1%, to RON 6,325.6 million. from RON 7,280.3 million in 2023.

Quantities of electricity supplied decreased in 2024 by approximately 2.6%, due to the decrease in the customer portfolio, as well as the decrease in consumption at the national level (as an effect of electricity price increases but also energy efficiency measures implemented).

In terms of EBITDA, the supply segment recorded a decrease in 2024, reaching a negative EBITDA of 166.8 million RON from a positive EBITDA of 305.5 million RON recorded in 2023, and at the same time a decrease in the EBITDA margin from 4.2% in 2023 to (2.6%) in 2024.

The supply segment has a net debt position that increased compared to 2023 by approx. RON 12.2 million, reaching RON 1,904.6 million RON in 2024.

“We focused our efforts and investments on key areas of our business, always looking ahead to what we are building together. The financial results in 2024 significantly exceeded our set objectives. Group-wide investments reached 112.5% of the planned value, reaffirming our implementation capacity and our teams’ ability to deliver tangible results, even in a challenging economic context. The company delivered solid financial performance, with a consolidated net profit of RON 376.5 million, surpassing the target by over 42%. These results provide a strong foundation on which we will continue to grow the Electrica Group. The results were also reflected in the performance of our shares on the Bucharest Stock Exchange. On the occasion of our 10-year listing anniversary, we reached an all-time high of RON 16.30 per share. Moreover, in the past two years, Electrica’s shares have strongly rebounded, growing by over 100% compared to the difficult period in 2022. In 2024, we also recorded a new high in terms of share liquidity – exceeding RON 62 million in a single trading session. A major milestone was also the record amount of non-reimbursable funding obtained for the development and modernization of the networks managed by our distribution operator, Distribuție Energie Electrică Romania (DEER).

In the past two years, we secured around EUR 450 million – the largest amount in Romania’s energy sector – for infrastructure upgrades and improved supply security. This includes a EUR 3.4 million PNRR grant for an energy storage project in Fântânele, which underlines our commitment to building an innovative and sustainable energy infrastructure. Alongside infrastructure development, we also significantly expanded our renewable energy production portfolio. The acquisition of Foton Power Energy and New Trend Energy added photovoltaic projects of over 130 MW to our portfolio. Additionally, Crucea Power Park’s success in the first round of the Contracts for Difference (CfD) scheme, with the “Crucea Est” wind project, strengthens our strategic role in the green transition and ensures financial predictability for the next 15 years,” said Alexandru Chirita, CEO of Electrica.