CNTEE Transelectrica (TEL) Q3 2024 earnings summary

Executive summary

• Operational revenues rose 87% year-over-year to RON 6,171 million for the first nine months of 2024, driven by higher tariffs, increased volumes, and exceptional non-recurring income from a legal settlement.

• Net profit nearly doubled year-over-year, reaching RON 410 million, supported by higher EBITDA, improved results in both profit-allowed and zero-profit segments, and a favorable base effect from pass-through operations.

• EBITDA rose 44% to RON 695 million, while EBIT nearly doubled to RON 432 million compared to 9M 2023.

• Investment expenditures grew by 55% to RON 456 million, supporting major grid and digitalization projects.

• Moody’s reaffirmed the Baa3 rating with a stable outlook in August 2024.

Financial highlights

• EBITDA increased 44% year-over-year to RON 695 million for all operations.

• EBIT rose 87% year-over-year to RON 432 million.

• Net profit surged 99% year-over-year to RON 410 million.

• Operational costs increased 93.8% year-over-year to RON 5,476 million, mainly due to higher grid losses and personnel expenses.

• Cash and cash equivalents reached RON 900 million, up 73% from year-end 2023.

Outlook and guidance

• Continued focus on grant funding and strategic investments in grid modernization and digitalization.

• Ongoing collaboration with government and EU partners to support infrastructure and renewable integration projects.

• Regulatory and market context expected to remain volatile, with emphasis on risk management and operational flexibility.

• Domestic electricity demand grew 2.8% year-over-year, while domestic production fell 7.5% year-over-year, indicating ongoing market volatility.