Romania, Electrica posted a net profit in the amount of 15.5 million euros

, SEE Energy News

Romanian electricity distributor and supplier Electrica recorded a 60 % drop in its net profit in the first half of 2021, compared to the same period of last year. The group posted a net profit in the amount of 15.5 million euros, down from almost 39 million euros in H1 2020.

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

The group’s revenues increased by 1.9 % year-on -year to 665 million euros in the first half of the year. At the same time, the cost of electricity and natural gas purchased rose by 19.6 % to 438 million euros.

CEO of Electrica Corina Popescu said that 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 risk management policies, part of the effect was also felt on the financial results for the first half of the year.