Preliminary Financial Results 2023

Societatea Energetica Electrica SA

29 February 2024

 

Summary of Preliminary Results for 2023 - 29 February 2024

The evolution of the main indicators for 2023:

§ EBITDA - RON 1,732.7 mn., an increase of 27.1% or RON 369.8 mn. compared to 2022;

§ Operating income - RON 13,333.8 mn., a slight decrease of 3.7% compared to 2022;

§ Net result - net profit of RON 620.4 mn., an increase of 11% or RON 61.6 mn.;

§ CAPEX PIF (commissioned) - RON 777.1 mn., increase of 62,2% compared to RON 479 mn. in 2022.

Analysis of the consolidated financial indicators

The main results presented below are extracted from the Preliminary Consolidated Financial Statements as of and for the period ended 31 December 2023 prepared in accordance with Order of Ministry of Public Finance 2844/2016:

Operating income, out of which	13,333.8	13,840.2	(506.4)	-3.7%
Income from subsidies	3,287.9	2,687.1	600.8	22.4%
Capitalised costs of intangible non-current assets	18.6	989.3	(970.7)	-98.1%
Operating expense	(12,322.6)	(13,011.2)	688.6	-5.3%
Operating profit	1,011.1	828.9	182.2	22.0%
EBITDA	1,732.7	1,362.9	369.8	27.1%
Financial result	(293.8)	(165.0)	(128.8)	78.1%
Net profit	620.4	558.8	61.6	11.0%

*Amounts are rounded to the nearest whole value

Source: Electrica

In 2023, EBITDA at Electrica Group level increased by 27.1%, i.e. by RON 369.8 mn., reaching a value of RON 1,732.7 mn., compared to the value of RON 1,362.9 mn. achieved in 2022.

The operating profit had an increase, of 22.0%, reaching a value of RON 1,011.1 mn. due to the positive impact generated by the operating expense decrease of RON 688.6 mn., impact off set by the negative impact of the operating income of RON 506.4 mn.

The net result of the Electrica Group for 2023 slightly increase of RON 61.6 mn. (11.0%), result generated mainly by the performance of of the distribution segment in the context of decreasing electricity costs to cover NL, as a result of the implementation of the MACEE centralized purchase mechanism, according to which the producers have the obligation to sell 80% of the available energy at a price of 450 RON/MWh, impact diminished by the increase in the volumes of electricity needed to cover losses in the network.

On distribution segment, revenues increased by approximately RON 1,014.8 mn., or 29.9%, to RON 4,411.5 mn., from RON 3,396.6 mn. in 2022 mainly due to the increase in revenues recognized under IFRIC 12 (recognized based on the stage of execution of the works, according to the accounting policy regarding the recognition of income from construction contracts), to which was added the increase in distribution tariffs as well as the decrease in volumes of electricity distributed.

For the supply segment, the revenues from electricity and natural gas supply decreased in 2023 by approximately RON 905.8 mn., or 11.1%, to RON 7,280.3 mn. from RON 8,186.0 mn. in 2022 due to the decrease of quantities of electricity supplied in 2023 by approximately 9%, 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). For the supply segment, both in 2023 and in 2022, the effect of retail electricity prices was covered by subsidies received from the state authorities, as a result of the application of the electricity and natural gas price ceiling mechanism, as a result of the application of Ordinance 27/2022, with subsequent amendments and additions.

As at 31 December 2023, the estimated amount for subsidies to be received from the Ministry of Energy is RON 2,595.6 mn. (31 December 2022: RON 1,280.8 mn.) and from County Agency for Payments and Social Inspection is RON 19.0 mn.. From the total amount of subsedies to be received, RON 1,894.8 mn. represent uncollected claims submitted to the state authorities.

OTHER IMPORTANT OPERATIONAL INFORMATION

§ Distributed electricity volumes - 17.05 TWh, down by 3,8% compared to 2022.  DEER serves approx. 3.93 mn. users, over an area covering about 40.8% of Romania;

§ Volumes of electricity supplied to final customers - 7.8 TWh, down by 9.1% compared to 2022, amid the general downward trend of electricity consumption; Electrica Furnizare supplies electricity to approx. 1.7 mn. consumption places on the competitive market, as well as in universal service and last resort);

§ Supply market share - Electrica Furnizare is one of the largest suppliers, with a total market share of 16.61% and a competitive market share of 10.25%, according to the latest ANRE report available (November 2023);

§ Electrica Group continues to pursue the expansion of its portfolio in the field of electricity production, especially from renewable sources, having at this time projects in different phases of execution with a capacity of aprox. 300 MW;

§ The estimated Regulated Assets Base (RAB), in nominal terms, for the year 2023, estimated at the end of 2023 was RON 7.2 bn.

§ At the end of 2023, the operator Distributie Energie Electrica Romania (DEER) realized and commissioned investments worth RON 777.1 mn, representing 101.7% of the annual value of the commissioning program planned for 2023 (i.e. RON 764.1 mn., of which RON 628.4 mn. is the plan related to 2023 and RON 135.6 mn. is carried over values related to 2022);         

The results presented in this release are based on the preliminary consolidated unaudited financial statements prepared in accordance with the Order of the Minister of Public Finance no. 2844/2016. The final results will be published on 6 March 2024, as per the financial calendar.

The documents related to the preliminary 12M 2023 results are available on Electrica's website at the following link: https://www.electrica.ro/en/investors/results-and-reports/financial-results/financial-statements-for-2023/, as well as in the document below.

We remind you that Electrica's management is organising on 11 March 2024, 16:00 (Romanian time), a web conference for analysts and investors: Presentation of Electrica Group 2023 Financial Results. The web conference can be accessed online under the following link: https://87399.themediaframe.eu/links/electrica240311.html

Contact Details:

Electrica Investor Relations - [e-mail]  ; [phone]

CEO                                                                                        CFO

Alexandru-Aurelian Chirita                                                   Stefan Frangulea

http://www.rns-pdf.londonstockexchange.com/rns/9355E_1-2024-2-29.pdf 

 

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