Electrica, the biggest electricity distributor and supplier in Romania, recorded a 60% drop in its consolidated net profit in the first half of 2021 compared to the same period of last year. The group posted a net profit of RON 76.1 mln (EUR 15.5 mln), down from almost RON 190 mln in H1 2020.

The drop was mainly due to higher purchase costs for electricity and natural gas purchased for resale by Electrica’s supply division.

The group’s consolidated revenues went up by 1.9% year-on-year to RON 3.26 bln (EUR 665 mln). Meanwhile, the cost of electricity and natural gas purchased surged by 19.6% to RON 2.16 bln, according to the group’s half-year report.

“In the context of profound and fast transformations in the energy market, one dominated by unpredictability, energy trading prices have risen significantly in the last period, reaching record levels even in the Romanian market. This evolution, difficult to anticipate, determined by factors external to the company, generated a significant increase in the electricity purchase costs. Despite our risk management policies, part of the effect was also felt on the financial results for the first half of the year,” stated Corina Popescu, CEO of Electrica.

The group released its report after the closing of the Bucharest Stock Exchange trading session on Tuesday, August 17.

Electrica has recorded one of the poorest performances in the BET index this year, with a 1.35% nominal decline of its share price compared with a 23.6% increase for the BET.

andrei@romania-insider.com

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