Last checked at 15 May 2019 07:00
Electrica Group - Results for the first quarter of 2019
The evolution of the main indicators for the first quarter of 2019:
§ EBITDA - RON 74 mn, decrease of RON 117 mn as compared to Q1 2018
§ Net result - RON 41 mn loss, down by RON 100 mn compared with the Q1 2018 profit
§ Increase of retail supplied quantity by 6%, and of the total distributed quantity by 0.5% y-o-y
The main results are presented below and are extracted from the consolidated condensed interim financial statements (not reviewed and unaudited) as of and for the period ended 31 March 2019:
Financial Results | Q1 2019 | Q1 2018 | Δ RON mn |
(RON mn) | (RON mn) | ||
Operating revenues | 1,626 | 1,389 | 237 |
Operating expenses | -1,673 | -1,309 | -365 |
EBITDA | 74 | 191 | -117 |
Operating profit | -47 | 81 | -128 |
Net profit | -41 | 59 | -100 |
Georgeta Corina Popescu, CEO Electrica S.A.: "Considering the new legislative context and the fact that this year, compared to 2018, the regulatory framework has undergone significant changes, 2019 being the first year of a new regulatory period in the distribution segment, the results recorded in the first quarter of this year were anticipated in the revenue and expenses budget.
Regarding the distribution segment, the change in the regulated rate of return set by ANRE for the fourth regulatory period, down from 7.7% to 5.66%, had a major negative influence on the distribution tariffs compared to 2018. However, the increase of the regulated rate of return to 6.9%, stated in GEO 19/2019, will lead to a positive adjustment of the distribution tariffs in the future.
On the supply area, Electrica suffered a significant negative impact because the reference price set by ANRE for January and February 2019 on the regulated segment did not predict the substantial increase in the electricity market price. The new legislative framework states that the losses from electricity purchase recorded by the suppliers of last resort in Q4 2018 and 2019 could be recovered starting with 1 March 2019 and until 28 February 2022.
Electrica will continue its business optimization and cost reduction programs, as well as adjusting the strategy to market conditions and the regulatory framework, so that end-of-year results to be in line with investor expectations."
The condensed consolidated interim financial statements as at and for the three month period ended 31 March 2019 prepared in accordance with the International Accounting Standard 34 - "Interim Financial Reporting", as adopted by the European Union, are available, in Romanian and English, in electronic format, on Electrica's website, at http://www.electrica.ro/investitori/rezultate-si-raportari/raportari-interimare/, respectively http://www.electrica.ro/en/investors/results-and-reports/interim-results/ and in hardcopy at the Company's headquarters in Bucharest, 9 Grigore Alexandrescu Street, District 1, which is open from Monday to Thursday between 08:00-17:00 (Romanian time), and on Fridays between 08:00-14:30 (Romanian time), excepting the legal holidays.
http://www.rns-pdf.londonstockexchange.com/rns/0804Z_1-2019-5-15.pdf