Electrica Group – Financial results 2015

• Electrica’s net profit increased by 17% in 2015
• The company proposed shareholders the payment of a gross dividend of RON 0.86/share

PROFITABILITY

ELECTRICA group, leader in electricity distribution and supply in Romania, in 2015 posted a consolidated net profit of RON 482mln, increasing by RON 69mln, respectively 17%, compared to the similar period of the previous year.

The profit attributable to Electrica SA shareholders, excluding the part attributable to minority shareholders of subsidiaries, is RON 362.7mln, by 22% higher than in the previous year.

The Board of Directors of Electrica S.A. endorsed and submitted for the approval of the Ordinary General Meeting of Shareholders scheduled for 27 April 2016 the proposal to distribute a gross dividend of RON 0.8600/share for the financial year ended 31 December 2015. The total gross value of dividends is approximately RON 291.6mln, accounting for 80.4% of the consolidated net profit attributable to Electrica S.A. shareholders.

The operating profit, in the same interval, amounted to RON 569mln, by 11.4% higher than in 2014.

REVENUES AND EXPENSES

Revenues of Electrica Group in 2015 amounted to RON 5,503mln, which means growth by RON 459mln, representing 9% compared to 2014.

This growth is due to several significant factors:

• Revenues in the distribution segment rose by RON 138mln, or 5.6%, to RON 2,613mln in 2015, compared to RON 2,475mln in 2014. This growth was primarily due to higher amount distributed;
• Revenues from the supply activity (excluding revenues from green certificates) increased by RON 281mln or 7.3%, to RON 4,142mln in 2015, from RON 3,861mln in 2014. This growth is due to an increase by 7.6% in the amount supplied, which cancels the effect of a decrease by 4.7% in the average supply price.
• Electrica Serv recorded an improvement in terms of external revenues (services provided for companies within Electrica group), from RON 22mln in 2014 to RON 33mln in 2015.

The expense with electricity acquisition at Group level rose by RON 370mln or 15.7%, to RON 2,719mln in 2015, from RON 2,349mln in 2014. The increase mainly results from the increase in amounts supplied. As percentage in revenues, cost with electricity acquisition was the main cost at Group level, representing 49.4% in 2015 and 46.6% in 2014.

In the same interval, expenses with salaries and benefits of employees decreased by RON 76mln or 10.2%, to RON 663mln.

OTHER IMPORTANT MENTIONS

• In 2015, Electrica Group distributed approximately 17.1 TWh (up 5% from 2014) to a number of approximately 3.65 million users.
• Electrica’s distribution operators distributed approximately 39.8% of total electricity distributed at national level
• Electrica Furnizare is market leader in both the regulated market and the competitive market, with a market share of 37.98% and, respectively, 14.13% in 2015, according to data communicated by ANRE for the first 9 months of 2015.

STATEMENT

Iuliana Andronache, General Manager Electrica SA: “Performance achieved by Electrica Group in 2015 is remarkable. The financial result of the company improved significantly compared to the previous year, being influenced especially by a positive result of the supply segment and improved profitability of the distribution segment. Investments made in our distribution networks, in technology and, of course, in people are already seen in our operational performance, but also in the improved quality of services provided. In 2015 we continued the accelerated reform of the company and the implementation of the best corporate governance practices, with very good results”.

The electricity distribution and supply company Electrica SA is leader in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector. The top position is supported by both the economic results and an experience in the field of almost 120 years. Electrica SA has national coverage – with a zonal organization in three areas for electricity distribution and supply: Transylvania North, Transylvania South, Muntenia North and the entire country for maintenance and energy services.

Source: Electrica Press Release March 16th