Electrica Group (BVB: EL), a major player in Romania's energy distribution and supply sectors, reported mixed financial results for the first half of 2024. 

The group's EBITDA increased by 6% to RON 614.7 million (EUR 123.6 mln), driven by strong operational performance in the electricity distribution segment. This growth was largely supported by a 15% increase in distribution revenues, which reached RON 2.24 billion, fueled by higher regulated tariffs and a 4.9% rise in the volume of electricity distributed. 

Despite the positive EBITDA growth, Electrica's net profit fell by 28.3% to RON 102.1 million from RON 142.4 million in the same period of 2023. This decline was primarily due to unfavorable market dynamics in the supply segment, where revenues dropped by 20.5% to RON 2.94 billion. 

The decrease in supply revenues was influenced by a 3% reduction in electricity sales volumes and a significant decrease in electricity purchase costs. 

Electrica is the biggest electricity supplier in Romania, with a 16.18% market share, according to data from market regulator ANRE. 

"We remain focused on our main priorities, investing in the modernization of distribution infrastructure while also implementing measures to stabilize results and generate sustainable long-term growth," said Alexandru Chiriță, CEO of Electrica. 

The group is in the process of expanding its portfolio in renewable energy production, with projects totaling approximately 300 MW in various stages of execution. 

Notably, the Vulturu project is nearing completion, with an expected finish in September 2024, while the Satu Mare 2 project has just begun, with a completion date set for December 2024.

iulian@romania-insider.com

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