CNTEE Transelectrica (TEL) Q4 2024 earnings summary

Executive summary

• Operational revenues rose 67% year-over-year to 7,879 mil Lei, driven by higher tariffs, volumes, and exceptional non-recurring income from a legal settlement.

• Net income surged 180% year-over-year to 597 mil Lei, reflecting strong EBITDA growth, higher operational efficiency, and one-time legal gains.

• Investments in tangible and intangible assets increased 51% to 664 mil Lei, supporting grid modernization and major infrastructure projects.

• Shareholder equity grew 12% to 5,828 mil Lei, with a market capitalization of 2,764 mil Lei at year-end.

• Major infrastructure projects and European-funded initiatives advanced, enhancing grid capacity and resilience.

Financial highlights

• EBITDA increased 65% year-over-year to 939 mil Lei, with profit-allowed operations and a 95 mil Lei legal recovery contributing significantly.

• EBIT rose 149% to 582 mil Lei, and net income reached 597 mil Lei, up from 214 mil Lei in 2023.

• Operating revenues from allowed profit activities rose 12% to 2,341 mil Lei; zero-profit activities revenues more than doubled.

• Cash and cash equivalents at year-end reached 672 mil Lei, up 29% from 2023.

• Dividend proposal of 2.12 Lei per share, representing a 5% yield based on March 2025 stock price.

Outlook and guidance

• Regulatory Asset Base (RAB) opening for 2025 is 3.3 bn Lei, with a 5-year investment plan targeting ≈3 bn Lei in new assets, half of which will be RAB-eligible.

• 2025 investment plan targets over 9.4 bn Lei for grid development, focusing on modernization, renewables integration, and interconnection.

• Rate of return on RAB set at 6.94% base, with adjustments for EU co-financed and non-core assets.

• Continued focus on European funding, digitalization, and smart grid projects to enhance operational efficiency.

• Regulatory framework and market conditions expected to drive upward trends in balancing market costs.