In Q1 2024, Electrica recorded a revenue decrease of 10.5% YoY, an EBITDA increase of 169.5%, and a net income of RON 127.7m, vs. a net loss of EUR 43m during the same quarter in the comparable period.

Recently, Electrica published its Q1 2024 preliminary results, and today we’re bringing you the highlights. In Q1 2024, Electrica distributed 4.41 TWh of electricity, representing an increase of 3.4% YoY. At these numbers, the Company serves 3.9m users, over an area covering c. 40% of Romania. In terms of the volumes of electricity supplied to final customers, this amounted to 2 TWh, decreasing by 5% YoY, as a result of the general downward trend of electricity consumption. Furthermore, Electrica Furnizare, one of the Group’s subsidiaries, supplies electricity to the competitive market, and also operates in the universal service and as a last resort. Also, this subsidiary is one of the largest suppliers in the supply market, with a total market share of app. 16%, and a market share of 10.4% in the competitive market, according to the latest report by ANRE (February 2024).

Moving on to financials, during 2023, Electrica recorded revenue of RON 2.2bn, declining by 10.5% YoY. Breaking this down into segments, the supply segment, which includes the revenues from electricity and natural gas supply decreased by 20.8% YoY to RON 1.61bn, due to the decrease in quantities of electricity supplied at -5% as well as lower purchasing cost for electricity. Electrica further notes that both in 2022 and 2023, the effect of the retail electricity prices was covered by subsidies received from state authorities, due to the elevated electricity prices recorded.

On the other hand, the distribution segment revenue recorded 31.9% growth YoY, to RON 1.1bn. This came mainly due to the significant increase in distribution tariffs, which were higher by app. 6.8% compared to the corresponding tariffs in Q1 2023.  As a result of the aforementioned developments, EBITDA increased by 169.5% YoY to RON 400.8m, implying an EBITDA margin of 17.9% (vs. 6% in Q1 2023). In terms of the net financial result, it amounted to RON 127.7m, vs. a net loss of EUR 43m in Q1 2023.

Electrica key financials (Q1 2024 vs. Q1 2023, RONm)

Source: Electrica, InterCapital Research