Romania: Electrica Group results for Q1 2018 – RON59M net profit

Electrica Group reports a net profit of RON59M in Q1 2018, although the supplied electricity decreased by 6.9%, and the distributed quantity decreased with 2.5% y-o-y, in the context of a lower national electricity consumption (by 9.2%) due to the warm weather.

The evolution of the main indicators Q1 2018 as compared with Q1 2017:

EBITDA – RON 191 mil., increase of RON 141 mil. as compared to the same period of the previous year

Net Profit – RON 59 mil.

The main results are presented below and are extracted from the unaudited consolidated condensed financial statements as of and for the period ended March 31, 2018:

Financial Results Q1 2018 Q1 2017 Δ %
(RON million) (RON million)
Operating revenues 1,389 1,444 -3.8%
Operating expenses 1,309 1,491 -12.2%
EBITDA 191 50 282%
Operating profit/ (loss) 81 (47) n/a
Net profit/ (loss) 59 (51) n/a

 

Catalin Stancu, CEO Electrica SA: “The results of the first quarter of 2018 are in line with the expectations. The experience of 2017, an atypical year for the energy market, and the measures we have adopted, including the rethinking of the business model, started to pay off.

I am glad to say that the strategic decisions have been effective and that the gradual recovery expected early this year is becoming more and more visible. Certainly, the normalization of the energy market situation in Q1 2018 has contributed to the positive Group’s results as compared with Q1 2017.

The development of record investments at the level of Electrica contribute to the long-term sustainability of the Group’s results.

A sustainable and consistent level of investments creates the foundation of improving the network performance, reducing technological losses, streamlining operating activities, to the benefit of end-users. In this respect, we emphasize the fact that in 2018 we plan to invest approximately 900 million RON only in the distribution infrastructure.

In this respect, it is necessary to have a regulatory framework that will further stimulate the investments that are essential for the Romanian energy system. At the same time, identifying a balance between affordability of energy prices and ensuring security of energy supply is a challenge that needs to be primarily addressed”.

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