In Q1, the company recorded an increase in sales of 4.7%, increase in EBITDA of 203% and a net profit of RON 80m.
In Q1 of 2020 Electrica recorded an increase in revenues of 4.7% YoY to RON 1.66bn. Such an increase could mostly be attributed to an increase on the electricity supply segment. Also, during Q1, the company recorded an increase of 3.2% of revenues from the electricity distribution.
The expense for electricity purchased decreased by 8.6% (or RON 98m) to RON 1.04bn. This decrease could mainly be attributed to the reduction of electricity costs on the supply segment, a positive effect slightly alleviated by the increase in electricity costs needed to cover NL, as well as the costs of green certificates. As a result of the operating increase in revenues and a decrease in operating expenses, EBITDA surged by 203% to RON 224m. Such a result improved the EBITDA margin by 9 p.p. to 14%.
Going further down the P&L, operating profit amounted to RON 100m, compared to RON -47m in Q1 2019. The net financial result decreased by RON 2.5m, as a result of the increase in finance cost, correlated with the increase in external financing.
In Q1 the company recorded a net profit of RON 80m, compared to RON -41m in Q1 2019. Such a result puts the profit margin at 5%.
Turning our attention to CAPEX, in Q1, Electrica invested RON 13.1m, representing a decrease of RON 10m YoY. This decrease was mainly determined by a lower level of investments planned in the distribution segment. The volume of investments had a material impact and, according to Electrica’s expectations, will continue to have such impact on the results of Electrica’s operations, Electrica’s indebtedness and future cash flows.
The company states that CAPEX in the distribution network will only have the anticipated positive impact on Electrica’s result of operations to the extent they are recognized in the Regulated Asset Base by ANRE and considering the rate of return approved by the regulatory authority.