Electrica Group posted a consolidated net profit of RON 210 million in H1, up by RON 201,5 million year-on-year, as well an an achievement of 83 percent of the consolidated net income budgeted for 2018, the company announced on Tuesday.

The total operating revenues of the Electrica Group amounted to RON 2,728 million, representing a decrease of RON 37 million compared to H1 in 2017, representing 1.3 percent.

Consolidated electricity purchase costs dropped by 17 percent to RON 1,269 million in H1 2018. This was due to the fact that the energy market was affected by a series of ‘unfavourable’ events, which generated significantly higher prices for electricity compared to H1 2018.

“The energy margin has improved significantly, given the correlation between selling prices and purchase prices. The margin was further supported by the implementation of the revised risk policies and a balance between profitability and market share. Losses registered last year on the regulated market were partly offset by improved margins for the regulated segment during this period, “the company’s statement said.

The company states in the report to investors that the EBITDA  increased by RON 263 million , representing a 123 percent year-on-year increase, as a net effect of the total operating revenues and the evolution of the electricity costs, having a net increase of RON 226 million, or 18 percent and of the decrease of RON 20 million, or 6 percent, to RON 297 million, the salaries and benefits of employees, as a result of the business optimization measures adopted by the Group.

The EBIT of the Group increased by RON 244 million, reflecting the increase in depreciation by RON 19 million, or 10 percent, as a result of the increase in the value of the investments put into operation but also as a result of the revaluation of assets at 31 December  2017, ” the company’s statement reads.

In H1 2018, the Group distributed about 8.8 TWh (down by 1.8 percent from H1 2017) to about 3.7 million users.


The post Electrica Group posts RON 210 million net profit in H1, up by RON 201,5 million year-on-year appeared first on Business Review.