In 9M 2023, Transelectrica’s numbers show a decrease in revenue of 32.3% YoY, an EBITDA decrease of 30%, and a net income of RON 207m, down 51%.
In total, according to the 9M 2023 results, the revenue amounted to RON 3.31bn, representing a decrease of 32.3% YoY. Transelectrica’s revenue is divided into 2 categories; a segment of activities with allowed profit, and a segment of activities with zero profit.
Focusing on the segment with allowed profit, the segment recorded a revenue of RON 1.5bn, a decrease of 13.6% YoY. This decrease happened due to the reduction in revenues from OTC (own technology consumption) capitalization. The decrease in OTC was further amplified by lower revenues from interconnection capacity allocation. Revenues from interconnection fell as usage of the available interconnection capacities fell from traders in the electricity market, combined with the effect of price adjustment to the demand and need for electricity. Breaking this down further, transmission revenue and other revenues on the energy market amounted to RON 1.46bn with a flat YoY development. This was mainly influenced by the evolution of the transmission tariff (+9% YoY) compared to the same period last year.
Moving on to operating expenses, it amounted to RON 931m, decreasing by 13.9% YoY. The decline was mainly influenced by the considerable reduction in OTC expenses. The costs to cover own technological consumption almost halved vs. 9m 2022. However, as the electricity transmission grid is highly dependent on weather conditions, the structure of electricity generation and consumption at the national level, the distribution of electricity flows in the internal network & neightbouring power systems has little to no controllable nature. In total, as a result of the faster revenue decrease compared to expenses, the EBITDA amounted to RON 573m, decreasing by 13.1% YoY. This would also imply an EBITDA margin of 38.1%, a slight increase of 0.2 p.p. YoY as the aforementioned EBITDA was achieved on the back of lower revenues.
Turning our attention to the segment of activities with zero profit, revenue amounted to RON 1.8bn, a decrease of 42.6% YoY, this was mainly driven by the decrease on the balancing market. OPEX mainly followed the decrease in the revenue, decreasing by 39.2% YoY, and amounting to RON 1.89bn.
Both of these segments taken together have led to an EBITDA of RON 483m, a decrease of 30% YoY, implying an overall EBITDA margin of 14.6%, a slight increase of 0.5 p.p. YoY. Finally, the net profit amounted to RON 207m (9M 2022: RON 418m).
Transelectrica’s overall key financials (9M 2023 vs. 9M 2022, RONm)
Source: Transelectrica, InterCapital Research
