Estée Lauder(US:EL)2025-09-01 14:00Financial Data and Key Metrics Changes - The consolidated net profit for the first half of 2025 is over RON 420 million, which is four times higher than the same period last year [1] - EBITDA exceeded RON 1 billion for the first time, marking a significant milestone in the company's performance [1][10] - The net result for the first half of 2025 is RON 319 million higher compared to the same period in 2024 [14] Business Line Data and Key Metrics Changes - Distribution revenues increased by approximately RON 300 million, driven by a 12.5% increase in distribution tariffs and a 3% growth in distributed energy [7][8] - The supply segment also saw revenue growth, attributed to increased volumes delivered in the retail market and higher acquisition prices of energy [9][22] - EBITDA for the distribution segment increased by RON 123 million, primarily due to a RON 171 million increase in energy margin [16] Market Data and Key Metrics Changes - The company ranks second in total market share among suppliers and first in terms of the number of consumption places [24] - The average price for network losses during the first half of 2025 reached approximately RON 600/MW [35] Company Strategy and Development Direction - The company is focused on investments in renewable energy projects, with a pipeline of approximately 307 MW of green production capacity [4] - The inaugural green bond issuance of EUR 500 million aims to finance strategic investments in sustainable energy infrastructure [3] - The company is committed to maintaining performance in a competitive energy market while adapting to the ongoing energy transition [2] Management's Comments on Operating Environment and Future Outlook - Management holds a positive outlook for 2025, emphasizing the importance of investments in network infrastructure, digitalization, and renewable energy production [6] - The company aims to exceed expectations regarding results and investment objectives, despite the challenges posed by market liberalization [2][6] Other Important Information - The company has consolidated its debt structure and improved its financial position, as recognized by Fitch Ratings [2] - The company is actively involved in securing non-reversible funds to support strategic objectives and enhance sustainability [4] Q&A Session Summary Question: Guidance on subsidy receivables and cash collection - Management indicated that they expect to collect up to RON 1 billion in subsidies this year, with ongoing discussions with authorities regarding future collections [64] Question: Average price for network losses and expense increases - The average price for network losses in the first half of 2025 was approximately RON 600/MW, with increased financial expenses and personnel costs impacting the bottom line [35][36] Question: Cyclicality of Electrica's activity - Management confirmed that there is cyclicality in energy consumption, which affects both distribution and supply segments [42][44] Question: Robustness of Electrica's treasury for future loans - Management affirmed that the treasury is robust enough to contract new loans, having demonstrated resilience through recent bond issuances and syndications [45] Question: Synergies from renewable energy production - The CEO highlighted that integrating production within the group creates a unique ecosystem, enhancing synergies between supply and distribution [47] Question: Use of proceeds from the green bond - Proceeds from the green bond will strictly be used for building renewable energy projects, such as PV parks and wind farms [48][62] Question: Excess profits in H1 and future corrections - Management expressed confidence in the distribution subsidiary's performance, indicating no expected corrections for H2 based on current results [51] Question: Dividend policy and future payouts - The CEO stated that the dividend policy will depend on recovering state subsidies and improving cash flow, with plans to return to a more generous payout once financial conditions stabilize [59][70]