In the first nine months of 2019, Transelectrica recorded a decrease in sales of 3% YoY, decrease in EBITDA of 12% and a decrease in net profit of 25%.
As Transelectrica published their 9M 2019 results, we are bringing you key takes from the report. According to the it, in the first nine months of 2019, the total quantity of electricity charged for services provided on the electricity market (41.29 TWh) registered slight 0.1% YoY increase.
Operating revenues in 9M amounted to RON 1.78bn, representing a decrease of 3% YoY, while the amount is 10% lower than planned. Such a decrease is mainly due to lower operational revenues associated to the zero profit activities (technological system services and the balancing market). The segment of profit allowed activities registered a 6% revenue increase, amounting to RON 907m. The increase came on the back of the growth of the tariff valid in the reporting period. On 01.07.2019 the tariffs approved by ANRE under Order 81/24.06.2019 came into force.
Total operational expenses registered slight drop of 1% YoY, amounting to RON 1.69bn. Meanwhile, the amount is 14% lower than the planned one. The mentioned decrease came mostly from a drop in Balancing market expenses by RON 93m (-19% YoY), which was partially offset by higher system operating expenses by RON 56m (+26%).
As a result of the lower topline performance, the company witnessed a 12% decrease in EBITDA, which amounted to RON 299m. Such a result puts the EBITDA margin at 16.8%.
Going further down the P&L, operating profit, amounted to RON 89m, which is a drop of 22% YoY. However, note that this result is above the planned one by RON 78m (due to lower operating expenses). In 9M of 2019, the company recorded a net profit of RON 74m, representing a decrease of 25% YoY.
Turning our attention to CAPEX, in the first nine months of 2019, Transelectrica recorded total investments by RON 164.4, representing an increase of 38% YoY. This figure puts the company at 57% of the achieved investment plan for 2019.