Electrica - Good results overshadowed by unpredictable future - Instant Earnings Comment from Concorde Ltd. [Hungary]
Total revenues remained almost flat at RON 1.36bn, down by 0.2% YoY in 3Q, while profit attributable to owners amounted to RON 105mn, up 49% YoY compared to 3Q17. EBITDA rose 17.5% YoY to RON 228mn. We also have to mention that, significant YoY changes were due to the low basis as increased electricity acquisition prices, energy crisis put pressure on base quarter’s results. However, revenues from electricity supply dropped by 12% YoY as a result of applying IFRS 15 standard. Cost of electricity purchased decreased by 13% in 3Q which contributed significantly to better results in this period. RAB rose 1.4% YTD to RON 4.85bn. All in all, we consider it a favorable report due to the good profit line and the positive improvements, although future is unpredictable at this stage due to altered conditions and lowered RRR for the next RP.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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