Transelectrica SA
Transmission and System Operator
of the Romanian Electrical Power System
We lead the power
Financial results
9M 2024
(01.01.2024 - 30.09.2024)
unconsolidated accounts
Results 9M2024
Purpose, disclaimer and other cautionary statements
DOCUMENT PURPOSE:
This presentation has been prepared with the sole intention to facilitate the understanding of Transelectrica's operational and financial results by the general investing public (shareholders. creditors. analysts. financial media). Therefore it is of a purely informative nature. This presentation is not an offer. invitation or a recommendation to trade in securities issued by the Company. The detailed financial statements and the full reports prepared in accordance with capital market regulations are available online at www.transelectrica.ro.
FINANCIAL NUMBERS:
reporting period: | 1st January 2024 - 30st Septembrie 2024 |
reporting standard: | International Financial Reporting Standards (IFRS) |
basis/scope: | standalone (unconsolidated) |
external audit: | audited |
rounded numbers: | for ease of reading, certain figures used in this presentation (tables and charts) are displayed in millions and rounded to such |
unit or to one or two decimals. In some cases this leads to minor differences between totals and the sum of the individual elements | |
(rounding errors) |
LANGUAGE DISCLAIMER:
This document represents the English-language version of the original Romanian-language document. The English version has been created for English readers' convenience. Reasonable efforts have been made to provide an accurate translation. However, discrepancies may occur. The Romanian version of this document is the original official document. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian version of the document.
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Results 9M2024 | Highlights | operational trends |
Domestic demand +2.8% y.o.y.
Domestic production -7.5% y.o.y.
CONSUMPTION | 2023 | 2024 | |||||||
9M | +2.8% | ||||||||
TWh | 1Q +3.1% 2Q +3.5% | 3Q +1.9% | |||||||
6,0 | |||||||||
5,5 |
5,0
4,5
4,0
3,5
0,0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024/2023 +6.5% +1.0% +1.6% 0.0% +1.3% +9.4% +5.9% -0.9% +0.4%
PRODUCTION | 2023 |
2024 |
9M-7.5%
1Q -0.1% 2Q-15.4% 3Q-7.6%
TWh | 6,0 |
5,0
4,0
0,0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024/2023 -1.2% +0.2% +0.9% -19.8% -17.0% -8.8% -8.5% -10.1% -4.1%
NET EXPORT | 2023 | ||
2024 | |||
TWh | 1,0 | IMPORT | |
0,5 | (+)| | ||
0,0 | −) | ||
-0,5 | |||
( | |||
-1,0 | EXPORT | ||
Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec |
Consumption and generation numbers do not include power plants' own electricity consumption. Consumption includes (i) energy losses in transmission and distribution networks. and (ii) consumption for hydro pumped storage. Cross-border net flow is calculated based on physical flows (import-export).
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Results 9M2024 | Financial results |
Operations | Revenues
Operational revenues | Operational revenues |
ALL OPERATIONS | PROFIT-ALLOWED OPERATIONS |
PROFIT-ALLOWED OPERATIONS: BREAKDOWN
2024 | |||
4,013 | 6,171 | ||
1,745 | 413 | ||
Profit- | Balancing | Balancing | Total |
allowed | services | services | |
operations (Capacity) | (Energy) | ||
2023 | |||
1,532 | 3,308 | ||
1,504 | 273 | ||
Profit- | Balancing | Balancing | Total |
allowed | services | services | |
operations (Capacity) | (Energy) |
Chart unit: mil Lei
307 | 1,745 | |||
189 | 49 | |||
1,200 | ||||
Transmission | Cross- | Grid losses | Other | Total |
tariff | border | anticipatory | income | |
rents | tariff | |||
income |
255 | 3 | 109 | 1,504 | |
1,137 | ||||
Transmission | Cross- | Grid losses | Other | Total |
tariff | border | anticipatory | income | |
rents | tariff | |||
income |
+241 | |||
+197 | 1,745 | ||
1,504 | +63 | +47 | |
-66 | |||
2023 | 2024 |
Revenues | Transmission | Cross- | Grid losses | Other | Revenues |
9M 2023 | fee | border rents | anticipatory | 9M 2024 | |
tariff income |
DRIVERS BEHIND THE INCREASE IN REVENUES
- Higher tariff revenue. Larger volumes (+2.3%) and higher tariff (+3%)
- Lower cross-border capacity income due to lower energy prices across the region
- Other income: Higher income from emergency energy assistance provided to neighboring TSOs (+42 mil Lei), sale of excess energy (purchased to offset grid losses) in the spot and balancing markets (+51 mil Lei), exceptional non- recurring income from recovery of a sizeable amount (ca. 95 mil Lei) as a result of a lawsuit won in court against the tax authorities for a case back in 2017
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Results 9M2024 | Financial results | ||||
Operations | Costs | |||||
Operational expenses | Operational expenses | ||||
ALL OPERATIONS | PROFIT-ALLOWED OPERATIONS | PROFIT-ALLOWED OPERATIONS: BREAKDOWN | |||
2024 | 4,012 | 5,739 | |
1,321 | 406 | ||
Profit- | Balancing | Balancing | Total |
allowed | services | services | |
operations (Capacity) | (Energy) | ||
2023 |
+138 | ||||||||||
253 | 1,321 | +14 | 1,321 | |||||||
263 | 1,183 | +57 | +12 | +43 | +11 | |||||
286 | ||||||||||
435 | 84 | |||||||||
Grid | MaintenancePersonnel Depreciation | Other | Total | 2023 | 2024 | |||||
losses | costs | |||||||||
Costs | Grid | Maintenance Personnel Depreciation | Other | Costs | ||||||
9M 2023 | losses | costs | 9M 2024 |
1,532 | 3,078 | ||||||||
363 | |||||||||
1,183 | |||||||||
Profit- | Balancing | Balancing | Total | ||||||
allowed | services | services | |||||||
operations (Capacity) | (Energy) |
239 | 1,183 | ||
252 | |||
243 | |||
377 | 72 | ||
Grid | MaintenancePersonnel Depreciation | Other | Total |
losses | costs |
DRIVERS BEHIND THE EVOLUTION OF COSTS
▲Grid losses (driven by a higher purchase price)
▲Higher grid maintenance costs
▲Higher personnel expenses
▲Other costs (+13 mil lei paid to electricity distribution operators for as compensation for additional grid losses power due to transits in the distribution grids - new cost item added to the transmission cost base under non-controllable OPEX hence full cost recovery)
Chart unit: mil Lei
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Results 9M2024 | Financial results |
2023
2024
2024 / 2023
-0.26PP | 2.40% | ||||||||
2.14% | Lei / MWh | ||||||||
Regulatory cap 2024: 2.19% (annual average) | |||||||||
1Q 2.22% | 2Q 2.34% | 3Q 1.89% | |||||||
3.0 | |||||||||||||
2.5 | |||||||||||||
2.0 | |||||||||||||
1.5 | |||||||||||||
1.0 | |||||||||||||
0.5 | / MWh | ||||||||||||
0.0 | |||||||||||||
Jan Feb Mar Apr May Jun | Jul | Aug Sep Oct Nov Dec | |||||||||||
Lei | |||||||||||||
2024 | 2.25 | 2.17 | 2.24 | 2.44 | 2.36 | 2.21 | 1.92 | 1.71 | 2.05 | ||||
2023 | 2,62 | 2,42 | 2,57 | 2,63 | 2,29 | 2,69 | 1,91 | 2,15 | 2,31 | 2,03 | 2,50 | 2,32 |
2024 / 2023 | Operational costs | grid losses | ||||||
452 Lei | |||||||
-1% FM | |||||||
448 Lei | 2024 | ||||||
Balancing | |||||||
500 | 2023 | ||||||
Market (net) | |||||||
400 | BM | ||||||
300 | 7% | ||||||
200 | |||||||
100 | 11% | ||||||
Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec | 22% | |||||
17% | |||||||
2024 / 2023 | 568 Lei | ||||||
-1% DAM | 561 Lei | 72% | |||||
71% | |||||||
1Q | 412 | 2Q | 475 | 3Q | 709 | ||
800 | |||||||
600 | Spot Market (net) | Forward | |||||
Market | |||||||
Day-ahead Market | |||||||
400 | FM | ||||||
Intraday | |||||||
200 | |||||||
0 | |||||||
Ian | Feb Mar Apr | Mai Iun | Iul | Aug Sep Oct Noi Dec |
GRID LOSSES | PRICES PAID PER MARKET | AVERAGE PRICE / PURCHASE MIX | |
31.68 TWh | 448 Lei/MWh (▼ 1%) | 519 Lei/MWh (▲ 10%) | |
GRID IN-TAKE VOLUME IN 9M 2024 | FORWARD MARKET (FM) | CROSS-MARKET AVERAGE PRICE PAID | |
31.00 TWh | 561 Lei/MWh (▼ 1%) | 71%FM / 22%SPOT / 7%BM (9M 2024) | |
GRID OFF-TAKE VOLUME IN 9M 2024 | DAY-AHEAD MARKET (DAM) | PURCHASE MIX (VOLUMES) | |
2.14% (0.68TWh) | 1,031 Lei/MWh (▲ 150%) | 72%FM / 17%SPOT / 11%BM (9M 2023) | |
GRID LOSSES 9M 2024 | BALANCING MARKET (BM) (Net, BRP fee included) PURCHASE MIX (VOLUMES) | ||
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Results 9M2024 | Financial results | |||
Operational profit | EBITDA | ||||
FROM REVENUES TO EBITDA | EBITDA BREAKDOWN (PROFIT-ALLOWED) |
2024 | +241 | ||||||||||
197 | 1,745 | ||||||||||
63 | 47 | ||||||||||
1,745 | 1,504 | ||||||||||
-66 | |||||||||||
687 | 8 | 695 | 2023 | REVENUES | 2024 | ||||||
-1,058 | |||||||||||
Revenues | Transmission | Cross- | Grid losses | Other | Revenues | ||||||
9M 2023 | fee | border rents | anticipatory | 9M 2024 | |||||||
Revenues | Costs | EBITDA | Pass- | EBITDA | tariff income | ||||||
EBITDA | EBITDA | ||||||||||
through | reported | ||||||||||
Profit-allowed | 573 | +114 | 687 | ||||||||
2023 | |||||||||||
1,504 | 2023 | 2024 | |||||||||
+127 | |||||||||||
931 | 57 | 12 | 43 | 14 | 1.058 | ||||||
573 | 483 | ||||||||||
-931 | |||||||||||
-90 | |||||||||||
2023 | EXPENSES | 2024 | |||||||||
Revenues | Costs | EBITDA | Pass- | EBITDA | before depreciation | ||||||
through | reported | Operating | Grid | Maintenance Personnel | Other | Operating | |||||
Profit-allowed | |||||||||||
costs 9M | losses | costs 9M | |||||||||
Chart unit: mil Lei | 2023 | 2024 | |||||||||
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Results 9M2024 | Financial results |
FROM EBITDA TO NET INCOME
2024
687
424 | 8 | 432 | +16 | 448 | 410 | |||||
-263 | -38 |
EBITDA Depreciation EBIT | Profit from | EBIT | Financial | EBT | Income | Net | |
Profit- | Profit- | Pass- | reported | result | tax | Income | |
allowed | allowed | through | |||||
operations | operationsoperations |
2023
573 | |||||||||||||
320 | 231 | +3 | 234 | ||||||||||
-252 | 207 | ||||||||||||
-90 | -27 | ||||||||||||
EBITDA Depreciation EBIT | Profit from | EBIT | Financial | EBT | Income | Net | |||||||
Profit- | Profit- | Pass- | reported | result | tax | Income | |||||||
allowed | allowed | through | |||||||||||
operations | operationsoperations |
From EBITDA to Net income
NET INCOME BREAKDOWN
+204 | ||||||
98 | 13 | 410 | ||||
114 | -10 | |||||
207 | -11 | |||||
Net | EBITDA Depreciation | EBIT | Financial | Income tax | Net | |
Income | Profit- | Pass- | result | Income | ||
9M 2023 | allowed | through | 9M 2024 | |||
operations | operations |
MAIN DRIVERS BEHIND
THE INCREASE IN NET INCOME
- EBITDA from profit-allowed operations (primarily driven by an exceptional non-recurring income from recovery of a sizeable amount (ca. 95 mil Lei) as a result of a lawsuit won in court against the tax authorities for a case back in 2017)
- EBITDA from pass-through operations due to base effect (a significant negative result was reported in 2023 due to the clearing of a large backlog of historical gains accumulated over the previous years)
Chart unit: mil Lei
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Results 9M2024 | Investments |
Delivered in 9M 2024
411 | New contracts |
Lei m | Total aggregate amount for contracts signed in |
9M 2024 |
Selected items:
200 Lei m - Upgrade to 400 kV of internal transmission corridor Porțile de Fier - Reșița - Timișoara - Săcălaz - Arad , phase II: Line 400 KV d.c. Reșița - Timișoara - Săcălaz
65 Lei m - Refurbishment substation Calafat
38 Lei m - Power Quality Monitoring System
408 | Capital expenditure |
Lei m | Amounts added to construction-work-in-progress |
in 9M 2024 |
Selected items:
93 Lei m - Connection of lines Isaccea - Varna and Isaccea - Dobrudja in substation Medgidia Sud - Phase I: extension of Medgidia Sud substation
63 Lei m - New 400kV line Porțile de Fier - Reșița 49 Lei m - New 400 kV line Gutinas - Smardan
538 |
Lei m |
Assets commissioned
Amounts transferred from construction-work-in- progress to fixed assets in 9M 2024
Selected items:
160 Lei m - New 400kV line Porțile de Fier - Reșița
97 Lei m - Connection of lines Isaccea - Varna and Isaccea - Dobrudja in substation Medgidia Sud - Phase II: in-out connections in Medgidia Sud substation
74 Lei m - Refurbishment of substation Baru Mare
of which RAB: 215 Lei m
Note: The biggest two investments commissioned in 9M2024 do not add to the RAB as they were financed with cross-border interconnection revenues. Other non-RAB investments amount to a total of ca. 66 Lei m, mainly consisting of electrical lines re-routing works to secure the safe operation of the electricity transmission network at crossing points with other infrastructures (transmission network capex funded by the owners of other infrastructures crossing the electricity transmission network),
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