In 2022, Transelectrica’s preliminary numbers show an increase in revenue of 67% YoY, an EBITDA growth of 214%, and a net income of RON 529.2m (2021: RON 450k).

In total, according to the preliminary FY 2022 results, the revenue amounted to RON 6.29bn, an increase of 67% 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, it recorded a revenue of RON 2.32bn, an increase of 77% YoY. This was due to higher revenues from interconnection and the recording of revenues from OTC (own technology consumption) capitalization. Breaking this down further, revenue from OTC capitalization (full explanation available in the FY 2022 report, here) amounted to RON 338.5m (2021: RON 0). Meanwhile, transport revenue and other revenues on the energy market amounted to RON 1.93bn, an increase of 54% YoY. This was mainly influenced by the increase in the average transport tariff (for revenues from the regulated transport tariff), the conditions of the decrease in the amount of electricity delivered to consumers, as well as the evolution of interconnection revenues. In fact, in 2022, the revenues from the allocation of interconnection capacity increased by more than 5 times and amounted to RON 399.2m.

Moving on to operating expenses, they amounted to RON 1.72bn, an increase of 29% YoY. The largest driver of this growth was the cost of purchasing energy to cover own technological consumption, which amounted to RON 827m, an increase of 57% YoY. This was mainly under the influence of several things, firstly the way that the system is designed (full explanation available on page 17 of the report), the average price of energy purchased, which was more than 2 times higher compared to 2021, as well as the unpredictability of the market which led to a rapid increase in prices. As a result of the faster revenue than expenses growth, the EBITDA amounted to RON 871m, an increase of 237% YoY. This would also imply an EBITDA margin of 37.6%, an increase of 17.84 p.p. YoY.

Turning our attention to the segment of activities with zero profit, revenue amounted to RON 3.97bn, an increase of 62% YoY, this was mainly driven by an increase in the revenue from the balancing market. OPEX mainly followed the growth in the revenue, increasing by 63% YoY, and amounting to RON 3.95bn.

Both of these segments taken together have led to an EBITDA of RON 895m, an increase of 214% YoY, implying an overall EBITDA margin of 14.24%, an increase of 6.65 p.p. YoY. Finally, the net profit amounted to RON 529m (2021: RON 450k).

Transelectrica’s overall key financials (Preliminary 2022 vs. 2021, RONm)

Source: Transelectrica, InterCapital Research