REG - Soc EnergElectricaSA - Summary results YE2023 and diffrences IFRS vs OMFP

Societatea Energetica Electrica SAAnnouncement

25/03/2024 17:45

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RNS Number : 2254I  Societatea Energetica Electrica SA  25 March 2024

Summary of Consolidated Results for 2023 - 25 March 2024

Solid net profit and EBIDTA growth at consolidated level in 2023, up to RON
772.1 mn., respectively to RON 1,714.1 mn.

The evolution of the main indicators for 2023:

§ EBITDA - RON 1,714.7 mn., an increase or RON 1,340.5 mn. compared to 2022;

§ Operating income - RON 13,315.2 mn., a slight increase of 3.6% compared to
2022;

§ Net result - net profit of RON 772.1 mn., an increase of RON 1,012.6 mn..

Analysis of the consolidated financial indicators

The main results presented below are extracted from the Consolidated Financial
Statements as of and for the period ended 31 December 2023 prepared in
accordance with IFRS-EU:

 Financial Results - in RON mn.*  2023        2022**      Δ        Δ%
 Operating income, out of which   13,315.2    12,850.9    464.3    3.6%
     Income from subsidies        3,287.9     2,687.1     600.8    22.4%
 Operating expense                (12,123.4)  (12,973.5)  850.1    -6.6%
 Operating profit                 1,191.8     (122.6)     1,314.4  -
 EBITDA                           1,714.1     373.6       1,340.5  358.8%
 Financial result                 (293.8)     (165.0)     (128.8)  78.1%
 Net profit                       772.1       (240.5)     1,012.6  -

*Amounts are rounded to the nearest whole value

**The amounts for 2022 were restated for IFRS-EU

Source: Electrica

In 2023, EBITDA at Electrica Group level increased by 358.8%, respectively by
RON 1,340.5 mn., reaching a value of RON 1,714.1 mn., compared to the value of
RON 373.6 mn. achieved in 2022.

The EBITDA growth in 2023 was mainly driven by the operational performance of
the distribution segment on the back of the increase in electricity
distribution revenues by approximately RON 1,014.8 mn., or 29.9%, to RON
4,411.5 mn. from RON 3,396.6 mn. in 2022.

The operating profit had an increase of RON 1,314.4 mn., reaching a value of
RON 1,191.8 mn. due to the positive impact generated by the operating expense
decrease of RON 850.1 mn., to which is added the positive impact of the
operating income of RON 464.3 mn..

The net result of the Electrica Group for 2023 increased of RON 1,012.6 mn.,
reaching a value of RON 772.1 mn. from a net loss of RON 240.5 mn. from the
previous year. This result is generated mainly by the performance of the
distribution segment in the context of decreasing electricity costs to cover
NL, as a result of the implementation of the MACEE centralized purchase
mechanism, according to which the producers have the obligation to sell 80% of
the available energy at a price of 450 RON/MWh, impact diminished by the
increase in the volumes of electricity needed to cover losses in the network.

On the distribution segment, revenues increased by approximately RON 1,014.8
mn., or 29.9%, to RON 4,411.5 mn., from RON 3,396.6 mn. in 2022 mainly due to
the increase in revenues recognized under IFRIC 12 (recognized based on the
stage of execution of the works, according to the accounting policy regarding
the recognition of income from construction contracts), to which was added the
increase in distribution tariffs as well as the decrease in volumes of
electricity distributed. As a result of ANRE order 27/2023, starting from Q2
2023, the distribution tariffs have been higher by approx. 20% (26.1% MN area;
21.5% TN area and 10.9% TS area), compared to the same period of the previous
year. The tariffs applicable from 1 April 2023 have not changed until 31
December 2023.

For the supply segment, the revenues from electricity and natural gas supply
decreased in 2023 by approximately RON 905.8 mn., or 11.1%, to RON 7,280.3 mn.
from RON 8,186.0 mn. in 2022 due to the decrease of quantities of electricity
supplied in 2023 by approximately 9.1%, due to the decrease in the customer
portfolio, as well as the decrease in consumption at the national level (as an
effect of electricity price increases but also energy efficiency measures
implemented). For the supply segment, both in 2023 and in 2022, the effect of
retail electricity prices was covered by subsidies received from the state
authorities, as a result of the application of the electricity and natural gas
price ceiling mechanism, as a result of the application of Ordinance 27/2022,
with subsequent amendments and additions.

OTHER IMPORTANT OPERATIONAL INFORMATION

§ During 2023, the Group reassessed its previous position with the
consolidated financial statements related to the recognition of financial
assets from the amendment of the concession agreements, for which a financial
asset in the amount of RON 951,5 mn. was recognised, representing the
difference between the net cost with the purchase of the energy for NL and the
NL cost included in the regulatory tariff by ANRE, for the period 1 January -
31 December 2022, and restated the comparatives in the current year financial
statements.

 

***

The results presented in this release are based on the consolidated financial
statements prepared in accordance with the IFRS-EU for the approval of
accounting regulations in accordance with International Financial Reporting
Standards.

The documents related to the 12M 2023 results are available on Electrica's
website at the following links:
https://www.electrica.ro/en/investors/general-meetings-of-shareholders/2024-gms/general-meeting-of-shareholders-as-of-25-april-2024/
(https://www.electrica.ro/en/investors/general-meetings-of-shareholders/2024-gms/general-meeting-of-shareholders-as-of-25-april-2024/)
and
https://www.electrica.ro/en/investors/results-and-reports/financial-results/financial-statements-for-2023/
(https://www.electrica.ro/en/investors/results-and-reports/financial-results/financial-statements-for-2023/)
.

 

Contact Details: Electrica Investor Relations - ir@electrica.ro
(mailto:ir@electrica.ro)   ; +40731796111

 

CEO
CFO

Alexandru-Aurelian
Chirita
Stefan Alexandru Frangulea

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