REG - Soc EnergElectricaSA - Statement related to info in the public space

Societatea Energetica Electrica SAAnnouncement

29/09/2022 15:15

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RNS Number : 2165B  Societatea Energetica Electrica SA  29 September 2022

To:
 
Romanian Financial Supervisory Authority (ASF)

 
Bucharest Stock Exchange (BVB)

 
London Stock Exchange (LSE)

Current report in compliance with the Law 24/2017 on issuers of financial
instruments and market operations, ASF Regulation no. 5/2018, and the
Bucharest Stock Exchange Code

Report date:   29 September 2022

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1(st) District, Bucharest,
Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,464,435,970

Regulated market where the issued securities are traded: Bucharest Stock
Exchange (BVB) and London Stock Exchange (LSE)

 

Piata reglementata pe care se tranzactioneaza valorile mobiliare emise: Bursa
de Valori Bucuresti (BVB) si Bursa de Valori Londra (LSE)

 

Significant events to be reported: Information in the public space regarding
the difficulties in the current operations of Electrica SA subsidiaries

 

Following the appearance in the public space of some information regarding the
difficulties in the current operations of the Electrica Group subsidiaries,
Electrica informs its shareholders and investors on the following aspects.

Europe is facing an unprecedented energy crisis. The current situation of the
Romanian energy market is a contextually difficult one for all the players on
the market, especially for all the suppliers who are facing challenges in
operating the business due to cash-flow deficits, generated by the
pre-financing of the protection schemes for the final customers,  as well as
for all the distributors, which currently bear huge differences between the
purchase price of electricity to cover the NL (Network losses) and the price
regulated through the distribution tariffs.

In order to pre-finance the support schemes established by the legislation, in
the case of the supply company, as well as the difference in the price of the
electricity for the coverage of the network losses, in the case of the
distribution operator), as presented in the the financial statements for the
first semester of 2022, published on 17 August 2022, Electrica Group
contracted in 2022 new credit facilities of over 2 billion RON. The access to
new financing facilities from credit institutions was confirmed in the first
six months of the year, the structure by which Electrica SA guarantees its
subsidiaries being accepted by all the main partner banks of the Group.

Electrica reports transparently and includes in its financial reports details
regarding the level of subsidies to be collected from the state.  In the
financial statements and the report of the first semester of 2022, published
on 17 August 2022, Electrica provided details regarding the level of the
subsidies to be collected from the state as a result of applying the mechanism
for capping the prices of electricity and natural gas approved by GEO no.
118/2021 with subsequent amendments, as well as GEO no. 27/2022. This
mechanism was subsequently amended by GEO 119/2022, whose law of approval,
with amendments, is currently in parliamentary debates.

Electrica is in the process of evaluating the impact of the latest legislative
and regulatory changes in the Group's performance and results.

The resilience strategy and plans implemented by the Group's management allow
rapid adaptation to atypical market conditions, and the impact of the
appropriate measures adopted will be reflected in the subsequent results.

Electrica ensures its shareholders and investors that at Group level there are
enough liquidities for fulfilment of all contractual obligations. Also,
considering the mechanism of capitalization of the price difference of the NL
related electricity, as stipulated by GEO 119/2022, Electrica also confirms
that it is in line with the budget approved by the General Meeting of
Shareholders in April 2022.

Electrica Investor Relations - ir@electrica.ro (mailto:ir@electrica.ro)

 

 

Chief Executive Officer

Alexandru-Aurelian Chirita

 

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