In Q1, the company recorded a decrease in revenues of 5.3%, decrease in EBIT of 46.7% and a decrease in net income of 44.3%.
As Transelectrica published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed a decrease in revenue by RON 36m, amounting to RON 648.9m (-5.3% YoY). Of that, revenues from transmission services, which account for 44.7% of the total revenues, observed an increase of 6.7%, amounting to RON 290.2m. Since the electricity quantity delivered to consumers decreased 2.15% in Q1 2019, transmission service revenues registered increase amounting to RON 11.9m, determined by the growth of the average tariff for transmission services approved by ANRE.
Further, revenues from system services, which account for 26.7% of the total revenues, amounted to RON 173.3m (-14.2%). The decrease could be attributed to the decline in revenues from technological system services by RON 27.9m in Q1 2019, a sum determined by 2.15% diminished quantity of electricity delivered to consumers and by reduced ANRE approved tariff for such services.
Next, revenues on the balancing market, which account for 27% of the total revenues, amounted to RON 175m (-12.7%). The decrease could be mainly attributed to reduced negative imbalance registered for electricity suppliers on the balancing market, namely the imbalance between the net contractual position notified and the actual delivered power decreased.
When observing operating expenses, they amounted to RON 605.3m, remaining relatively flat.
Consequently, EBIT amounted to RON 43.5m, representing a decrease of 46.7%.
Moving further down the P&L, the company recorded a net financial loss of RON -4.1m, which is an increase of 11.1%. The increase in loss could be attributed to the development of the national currency’s exchange rate with the foreign currencies in which Transelectrica has contracted bank loans to finance its investments.
In Q1, net income amounted to RON 38m, representing a decrease of 44.3%.
