In a market context characterized by volatility and uncertainty, the Electrica Group managed to exceed the objectives set in the approved budget for all important indicators. Although the 2024 budget estimated a 13.0 percent decrease in EBITDA at the Electrica Group level, the indicator recorded a more moderate decrease, by 9.9 percent, respectively 171.3 million RON, reaching the value of 1,561.4 million RON.

Also, the 2024 budget predicted a 34.2 percent decrease in operating profit, but it recorded a decrease of 24.9 percent, reaching the value of 759.5 million RON, as a result of the negative impact of 2,367.6 million RON, generated by the decrease in operating income, partially offset by the reduction in operating expenses by 2,116.1 million RON.

At the same time, although the budget was built on a net profit decreasing by 57.3 percent, Electrica managed to obtain a net profit at consolidated level of 363.5 million RON, decreasing less by 41.4 percent. The 2024 result was mainly affected by the supply segment, as a result of the decrease in income from the cap, as a result of the recent amendments to the GEO 27/2022, as well as the decrease in the quantities of electricity supplied on the retail market by 2.6 percent. This negative impact was offset by the favorable performances reported by the distribution segment.

Alexandru Chirita, CEO Electrica: “The Electrica Group ends 2024 with consolidated financial results above expectations, demonstrating the ability to navigate efficiently in a complex economic environment. Net profit recorded an increase of 37.2 percent above the budgeted level. EBITDA was 3.5 percent above initial estimates, reflecting operational efficiency and the robustness of the business model.

At the same time, the level of investments made at Group level exceeded 112.5 percent ​​of the programmed value, reinforcing our commitment to the modernization and digitalization of the infrastructure.

These results reflect not only the excellent strategic execution, but also the professionalism of the team, to whom I thank for their dedication and contribution to the consolidation of a sustainable and performance-oriented business model.”

In the electricity distribution segment, revenues recorded an increase of approximately 261.7 million RON, respectively 5.9 percent, reaching the value of 4,673.1 million RON, compared to 4,411.5 million RON in 2023. This increase was mainly determined by the effect generated by the increase in distribution tariffs by 6.8 percent compared to the last adjusted tariffs starting with April 2023, as well as the increase in distributed electricity volumes by 4.2 percent and the increase in revenues recognized in accordance with IFRIC 12 (recognized based on the stage of execution of the works, according to the accounting policy regarding the recognition of revenues from construction contracts).

Regarding the supply segment, revenues recorded a decrease of approximately 825.4 million RON, respectively 11.3 percent, reaching the value of 6,454.9 million RON, compared to 7,280.3 million RON in 2023. This variation was mainly determined by the decrease in the quantity of electricity supplied on the retail market by approximately 2.6 percent, as well as by the reduction in the acquisition cost (by 36 percent for electricity) which has an implicit impact on sales revenues, respectively the decrease in revenue from capping, as a result of the recent amendments to GEO 27/2022. According to them, the final price invoiced to customers is represented by the minimum value between the capped price, the contract price and the final price calculated using the “cost-plus” method, respectively the recognized acquisition cost + the supply component (on July 29, 2024, the updated guide on the new calculation of the amounts to be recovered from capping/subsidies was published on the ANRE website).