Romanian electricity distributor and supplier Electrica sees 28% profit drop in Q1 2021
Electrica (EL), a group of electricity distribution and supply companies 49% controlled by the Romanian state, saw its net profit drop by 27.5% in the first quarter of 2021 compared to the same period of 2020 to RON 58 mln (EUR 11.8 mln). The group’s consolidated EBITDA was 11% lower year-on-year, at RON 199 mln (EUR 40 mln).
The lower results came in the context of the full market liberalization for household clients in Romania, which came with higher prices for end consumers. However, while Electrica’s consolidated revenues went up 2% to RON 1.73 bln (EUR 351 mln), the expenses went up 3.6% to RON 1.65 bln (EUR 335 mln).
The total distributed electricity volume increased by 5.4%, while the retail supplied electricity volume fell by 2%, compared with the same period of the previous year.
“In an atypical economic and social context, Electrica Group’s results for the first quarter of this year are in line with the budget,” said Electrica CEO Corina Popescu in a statement for investors.
“For the electricity supply area, the results of the first three months of 2021 should be read in the context of complete energy market liberalization, leading to a significant increase in energy purchase prices, correlated with the fact that the 2020 performance on this segment was an exceptional one, also due to the favorable effect of the recoveries related to the previous years. The intense period of changes related to the functionality of the electricity market led us to implement a series of measures primarily aiming to obtaining cost optimization for the end customer, while facilitating the customers’ transition in the competitive market by simplifying contracting flows,” she added.
Electrica’s shares have significantly underperformed the market this year, with a year-to-date increase of only 4.9% (as of May 14), compared to an 18% increase for the BET index.
(Photo source: the company)