Electrica published their 9M 2023 results recently, showing a 3% YoY decrease in the top line, a 14% YoY increase in EBITDA a net profit of RON 418m, a decrease of 21.6% YoY.

In 9M 2023, Electrica posted a top line in the amount of RON 9,890.9m, which represents a 3% YoY decrease. Top-line development came with an overall favorable impact of the increase in the distribution segment. The positive development of average distribution tariffs that grew c. 20%. However, at the end of 2021, following the increase in the price of energy and natural gas on the international and national markets, the energy crisis, as well as the effects caused by these increases among the population, in Romania, a series of support schemes were applied to electricity and gas consumers, by establishing compensation and capping schemes. In 2023, the electricity market is totally liberalized for all categories of customers and the price is set by suppliers through free market mechanisms, both for universal services offers and for the offers related to the competitive market. Higher tariffs were partially offset by the decrease in distributed electricity volumes by c. 6.2%.  Also, favorable impact from the evolution of the revenues recognized in accordance with IFRIC 12 (revenues from the energy distribution segment) that are influenced by the recognition of investments in the distribution network in connection with the concession agreements.

Overall, OPEX decreased by 3.3%, while EBITDA increased by 13.5% YoY, amounting to RON 1,252.9m, as OPEX decreased more than the top-line did. Below the operating line, Electrica posted a deteriorating net financial result of RON -217m ( vs. RON -103m in 9M 20222) mainly due to almost 2x higher finance costs (amounting to RON 216.8m), further slightly amplified by lower financial income. Finally, as a result of the above-mentioned, the bottom line amounted to RON 418.3m (-21.6% YoY).

Electrica Key Financials (9M 2023 vs. 9M 2022, RONm)