In Q1, the company recorded an increase in revenue of 17.3%, a decrease in EBITDA of 61.2% and a net loss of RON -40.9m.
As Electrica published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed an increase in revenues of 17.3%, amounting to RON 1.6bn. The increase mostly came from an increase on the supply segment of RON 228.9m (+22.2%), while the distribution segment recorded an increase of RON 27.6m (+4.5%). The increase on the supply segment can be attributed to the 6% retail sale price increase and the 6% increase in the supply of electricity on the retail market; the development of the natural gas supply activity had also a positive impact on the segment revenues.
Revenues (Q1 2019 vs Q1 2018) (RON m)
When observing the expense for electricity purchased, it increased by RON 254m, amounting to RON 996.4m (+34.2%). The increase came as a result of the rise in the electricity purchase prices in Q1 2019, compared with the same period of the previous year. The cost of the electricity purchased for supply and balancing increased by 24.8%, amounting to RON 767.6m, being the cumulative effect of the higher electricity purchase price and the increase in the quantity of electricity purchased. When observing the distribution segment, in Q1, the cost of the electricity purchased to cover network losses increased by 25.6%, amounting to RON 228.8m.
Going further down the P&L, EBITDA amounted to RON 74.1m, representing a decrease by RON 116m, which could mostly be attributed to a rise in operating expenses in Q1 2019.
Note that depreciation and amortization observed an increase of RON 11.3m (+10.2%), as a result of the reclassifications under IFRS 16 ‘Leases’, but also of a higher level of investments’ commissioning.
EBIT amounted to RON -47m, representing a decrease by RON 127.8m.
In Q1, as a result of the above-mentioned factors, Electrica recorded a net loss of RON 40.8m, representing a decrease by RON 100.1m.
