Hello. I am Jana Dingo , part of Investor Relations Department.
Can management hear us? You can proceed with your presentation, please.
Together with the entire management team, I would like you to welcome to our presentation of Electrica results for the first quarter of 2022. Those of you who are connected only by phone, please download the presentation in PDF format available on our website on the Results and Presentation section. The participants connected online or through phone can address written questions. We cannot hear you. Kindly note that the entire conference is being recorded, and due to the large number of participants, the attendees' voices will be disabled. Now, we will begin the presentation and we will have a discussion on the financial results for the first three months of 2022. Afterwards, we will discuss about the financial impact of electricity market on group activities, and at the end, we will have a Q&A session.
Now, I will leave the floor to Ms. Corina Popescu, Electrica CEO, to begin the presentation.
Good afternoon, ladies and gentlemen. Thank you for joining us today for the results presentation of the first quarter of 2022. Before I leave the floor to Stefan, I will like to share some highlights with you. The volatility market, energy market, has continued also in Q1 2022 and continues to have a major impact in all players' financial results. On the distribution segment, the cost of electricity acquisition in order to cover the grid losses recognizing the tariff, negatively affected the financial results on the distribution segment.
The good news is that starting with 1st of April 2022, the distribution segment will benefit from the tariff increasing by the Ordinance 27 and will allow to recover the amount of RON 363 million from the difference in average price of purchasing electricity necessary for covering the network losses for 2021. Furthermore, the tariff will not be increased until 1st of April 2023. Even in this difficult situation, our distribution company continues the ambitious investment program and fulfill all the obligations that we plan to have in the first quarter.
In the supply area for the Q1 2022, the company recorded a good performance with a net profit of RON 151 million and a positive EBITDA of RON 187 million, mainly due to the increase in the electricity sales price. Electrica Furnizare had to manage the impact of the measures granted by the authorities through the aid scheme provided by the Ordinance 118 and 27 and finding the use of the losses generated by the instability of the energy market. Although Electrica efforts materialized in specific measures for each area of activity lead to financial recovery in Q1 2022, the highest price for the electricity acquisition on OPCOM market as well as the successive legislative changes still generate a negative impact on the revenue on the distribution segment. To Stefan to present the financial results and the outlook in detail.
Thank you, Corina. I will also ask my colleagues to go through the presentations and to go directly to the slide number four, which will present the detailed analysis in terms of evolution of EBITDA. At the level of the group, unconsolidated basis, we have a decrease of EBITDA compared with first quarter of previous year, which is mainly determined by the network losses cost, on the side of the distribution business, on the distribution segment. Which is due to the increase of the purchase price of the electricity needed to cover network losses. As mentioned by Ms. Popescu, these amounts, which are generating additional costs, which amount for RON 384 million for quarter one, will be recuperated in future tariffs.
It's a positive element that according to the ordinance, Government Ordinance 27/2022, the amounts representing this difference will be recuperated in tariffs after 31st of March 2023, on a period of five years. Also, starting with the 1st of April 2022, we have increased tariffs, which will allow us to recuperate until end of this year, the amount of RON 363 million, which represented the difference in the price of energy for network losses for previous year. This will add up to improve the performance for the rest of the year.
In terms of the other elements which impacted the distribution segment on slide five, we have an increase in energy revenues of RON 76 million, which is the result of the increase of tariffs by average 8.6% at the beginning of the year. A very slight reduction of the decrease of quantity of distributed energy. In terms of other elements which are to be mentioned, there is an increase in terms of operating expenses, which is due to the increase of repair and maintenance costs. This is also related to the unfavorable weather, but also to the increase of costs for various categories of services.
There is a mention to be done about the net debt increase because this amount representing the difference from the network losses cost needs to be financed, and this is why there is a net debt increase registered compared with first quarter of 2021. If we move to the next slide related to, you have the details about the three regions for the distribution. I would go directly to the next slide related to the Electrica Serv in slide 12.
Where, in terms of financial results, we would like to mention that there is an increase of the EBITDA by 4 million RON compared to quarter one 2021, which is due to a mix of increase of revenues, but also a decrease of employee benefits following change in representation structure of the operating segments. Moving to the supply business, Electrica Furnizare, you have here a detailed analysis about our performance in this side. As Ms. Popescu mentioned, I think it's a very good result, the fact that we managed to post a positive result for the supply business for quarter one, and which is significantly higher than the one in quarter one. This is mainly following the evolution of the following factors below.
A significant increase in revenues of RON 818 million, which is driven by the electricity supply, natural gas market. An increase of operating income mainly subsidies of RON 622 million, representing values to be recovered under the support scheme for the end consumers, which is approved by Government Ordinance 118/2021, and then subsequently amended in Ordinance 3/2022, and then Ordinance 27/2022. An unfavorable effect of RON 20 million from impairment losses of trade receivables, which is also a result of the analysis of recoverability of receivables based on IFRS 9.
The net profit increased by RON 123 million, mainly from this positive EBITDA of RON 151 million. Of course, there is an impact in terms of increase of net debt because we do need to pre-finance the support scheme in relation with the amounts that we need to receive from the state budget related to the support scheme for the end consumers. From this point of view, you saw the amount of subsidies that we are still waiting to cash in.
We have cashed in until now an amount related to approximately RON 220 million. A positive element to be mentioned in relation to the support scheme, the Ordinance 27/2022, which prolonged the scheme for one more year until 21st of March 2023, also included the possibility and the mechanisms for the regularization of the amounts to be recovered for the period of initial period of the scheme from 1st November 2021 up to 31 March 2022. This way, we will be able to recuperate the P&L effect from the capping mechanism, which was generated under the initial form of the support scheme, as introduced by Ordinance 118/2021.
Concluding, this brief presentation and before moving to the part related to, listening to your questions and answering them as accurate as possible, I would like to mention that, I think that the results of this quarter show that, the measures that we have taken in terms of, taking the lessons from the previous year, but also acting in terms of hedging energy, in terms of, repricing, negotiating clauses of the contract, being prudent in terms of managing the operational costs, do pay a result and do show the positive result on the supply side. Also on the distribution side, if you consider the amount to be recuperated from the difference of price of energy for network losses, as we consider that the result can also be considered as a positive one.
I mean, there is a negative result of RON 307 million, but there is RON 394 million to be recuperated from future tariffs in relation with the differences for network losses. This result is even more important for us in the context in which, as you all know, starting with February 2022, the global geopolitical tension escalated significantly with the military intervention in Ukraine, and the volatility of the market was also increasing. From our point of view, following the actions that we have already implemented, as well as several strategies that are ongoing, we consider the group managed a significant recovery of the financial and operational performance in the near future. We are confident we will continuing this on this path during this current year.
If you have questions, we are here, the whole team, and we'll try to answer as accurate as possible. Thank you.
Now we will have a Q&A session.
Ladies and gentlemen, at this time, we will begin the question-and-answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. If you wish to remove yourself from the question queue, then you may press star and two. Please use your handset when asking your question for better quality. Anyone who has a question may press star and one at this time. One moment for the first question, please. The first question is from the line of Ciopraga Iuliana with WOOD & Co. Please go ahead.
Hi, good afternoon. A couple of questions. First, on supply side, I'm not very sure I understand exactly where this positive result comes from, because in the first quarter, you were still under the ordinance of last year, under the support scheme valid until March. Have you booked all the recoveries that were due under the current scheme? I mean, the very positive result is a bit of a surprise. I'm just trying to understand exactly what's driving this. Regarding distribution, can you comment what the average price for the grid losses on the contracts that you've already concluded? Because I understand that, as of April, you are able to conclude contracts with state power producers with prices under the current market price.
I'm just wondering what effect that had on your average forward price. That's it. Thank you.
Okay. Thank you very much for the question, Iuliana. I'll try to explain a little bit what's happened on the supply side first. You know, the behavior of the customer is to have one-year contracts. Actually, when we review all our contracts in Q4 2021 for 2022, we review all the sales price in those contract. Due to the fact that this new price now are actually in the new contract, these are the results that we have it. In Q4, the negative impact was especially due to the fact that we not succeeded to fully transport the higher increasing price in Q4 2021. Now, when we define the new contract and the new price, we booked the higher acquisition price from the beginning of the year. For the distribution
For the distribution, you can repeat the question. What are your concerns?
No, I'm just wondering, I mean, we can find out easily right now what was the average price for grid losses in the first quarter. I'm just wondering how much of the losses for the following quarters are covered via forward contracts, and what the average pricing then. Because you are able right now to buy electricity at lower prices from the state-owned power producers, according to the same Ordinance 27/2022. I just wanna see a result of that.
For distribution, we never disclose the acquisition price. What I can mention is that, starting with Q2 2022, we have also the possibility to have the acquisition contract through this single buyer, which is Transelectrica. This was approved and already implemented. Starting with this part of the year, we can also have the acquisition price through this special platform that are dedicated for the distributor and the customer. Regarding the acquisition, we follow our strategy and of course also on the distribution, our expectation will be to improve the acquisition price due to this new relation between Transelectrica and all the producers.
Thank you. If I may, one more question.
Yes, sure.
Actually it's both regarding supply and distribution. How do these results fit into the budget that you've announced? I mean, is it better than expected on the supply side? Also on the distribution side, how do you see the results compared with the budget?
On the distribution side, we are on the budget. Do you know that we publish budget proposal without increasing the tariff starting with 1st of April? On the distribution side, we are on the budget. On the supply side, we are better than the budget. To be honest, the results now are better than we plan in Q1 due to the better results on the supply side.
What do you expect for the following quarters on the supply side? Will this good performance continue? Do you expect this to continue?
I cannot say that will be the same level because, you know, being winter, the consumption was higher. Anyway, we don't expect this year to have an impact with what's happening to Q4 2021.
Mm-hmm.
Of course.
But-
... the next three quarters, our expectation will not be to have the results to the same level, but to have also very good results.
Coming back to the first quarter result, my misunderstanding comes from the fact that the old support scheme was actually causing you some losses of revenue because not all the power acquisition costs were recognized. In my understanding, the old scheme did not allow you much profit. That's why I was surprised by the very good performance. I was wondering if you can comment a bit on this in this regard.
Yes, of course. I will also ask Stefan to add it, but please have in mind that based on the ordinance 27, all the costs that are not recognized in the past are also now recognized for the past. I will kindly ask Stefan to come with the figures. Even if some costs are not recognized in the past on the supply side, the acquisition, the full acquisition costs now are fully recognized, and also there are recognized a higher supply cost for each MW hour. Stefan, you can come with the figures to-
Yeah, I can add here. First of all, what I would like to mention is that the result is also related to the fact that we organized better for this year in terms of having significantly better coverage of the contracts in terms of forward. Yeah, the quantities to be delivered to our customers to be sourced from forward contracts on the energy market. Depending much less on the day-ahead market and on the volatility impact from there. Then in respect of the capping scheme, the situation is as follows. There are two levels or two steps of recuperation under the capping scheme.
There is a first level up to the level of RON 525 per MW, which was included in the initial form of the ordinance, and with which was operating on the 21st of March, and which was generating also P&L effect for us. Starting by the stipulations of Ordinance 27/2022, we are able to file in until 15 July for regularization of these amounts to be recovered coming from the past, from the period 1st November 2021 up to 31st March 2022, and this is the second step of recuperation in terms of the capping mechanism. This is the explanation related to the ability to recuperate the P&L effect from the past.
Did you book that in the first quarter? That's actually my question. I mean, did you book any of this? You booked,
Yeah, it's booked in the first quarter. It's normal. It's a legislation by the Romanian state. I don't have any reasons not to consider that I will not recuperate this from the Romanian state. We are able to prepare the reports. We are confident this will get paid.
No, I meant you include already everything in the result of the first quarter, including the second amount. This regularization of this amount until July, the second part that you just mentioned right now, that's already.
Yes.
booked, right?
Yes, it's already booked. It's already included because it refers to the quantity of energy which were delivered in the first quarter. The impact of the capping for the end of 2021 was not really significant because we were coming with a lot of contracts from the liberalization of the market. There were very few customers which are basically above the ceiling, the level at that moment. The impact of the capping is in first quarter. We, yes, we registered those amounts because they are related to the quantities of energy which we delivered in the first quarter.
All these regularizations are already booked in the first quarter. We won't be seeing any amounts related to the old support scheme, going forward, right? Is my understanding correct?
Yes, it's correct.
Thank you.
The next question is from the line of Procopovici Dumitru with BT Capital Partners. Please go ahead.
I would like to ask about how much out of this RON 632 million is related to the last year losses, if you are able to specify.
As mentioned, also previously, the impact of loss from the support scheme for 2021 is not significant. Because basically the contracts that we had were almost all below the level of the ceiling. Basically the P&L effect from the support scheme under the initial Ordinance 118 from 2021 was really not affecting us that much in terms of amounts in 2021. It starts with 2022, 1st of January to impact.
Only to add something to what Stefan clarified. The contracts for 2021 was concluded mainly in Q4 2020, when nobody expected such development of the market. Actually, the fixed price in the contract are fixed, and this is the reason that even if we are very well hedged, you know that, based on our strategy, we never remain unhedged less than 80%. The price was fixed in the contract. We did not succeed to increase the price only for Q4. We succeeded only for a few customers. For 2022, we changed the strategy of acquisition. We increased the hedging expectation in advance for Q1, and the results obtained for this year are different.
Okay. I would like to ask regarding the natural gas supply segment. As far as I understand, a part of this amount also refers to this business. My question is, how much out of this subsidized amount of RON 632 million is related to the consumption of natural gas?
You're referring up to the total RON 632 million subsidies that we mentioned.
Yes.
are in the revenues. How much represents natural gas, correct? I'm sorry, but it's
Yes.
It's the line is not very clear. Okay. Let's check the numbers and tell you, but it's not really that large because gas is not also a significant part in our portfolio. Checking on that.
I just want to understand if this segment of a business becomes profitable under this condition or not.
No. On the supply side, both segments, electricity and gas, are now with the losses. The fact that the gas business is not significant on the portfolio of Electrica Furnizare, the losses are not very high. My colleagues will come in with the figures if we'll not succeed.
Yeah. Out of RON 632 million, the amount representing amount subsidies to be recuperated related to the gas, it's RON 21.5 million, so it's not that large compared with the total amount.
Okay. Thank you. About high financing cost, is the government going to compensate this cost going forward, considering that you need to make some big overdrafts from the bank?
Yes. The financing costs are also covered by these 73 RON per MWh on the supply side and on the distribution side. They will change the methodology and all these financing costs will be actually recognized in the tariff. To be honest, all those will be recognized via a financial asset which will be remunerated with 3%, 3.2%.
Yeah.
Yes.
50% of the regulated rate of return, so roughly 3.2%.
This amount will be regulated next year in April 2023 by the tariff approved then or in the next five-year term?
That's correct. According to Ordinance 27, in the next five years, starting with the period after 31st of March , 2023.
Okay. Okay.
On the distribution side. On the supply side, we already start to recover our financial costs.
As I understand the law, the company is now allowed to make profit out of regulated 73 RON per MW fee for supply, and all other supply-related costs will be transferred to end consumer or compensated by government. Is it correct?
Yes, it's fully correct.
Okay. I have also a question regarding trade receivables. What caused this increase of 56% quarter-on-quarter in trade receivable? Does the customer delay paying bills or there is some other issues?
Regarding receivables, unfortunately, our legislation will not help us anymore until Q3 of last year. We are not able to disconnect the customer with forbidding based on the law, and the problem is that the customer, if they are not disconnecting, some of them pay their bill later. Stefan?
Yeah. We have also some slides on that. Let me get to those. Just a second.
Unfortunately, until Stefan will find the slide number, also this year starting with February, we are in the same situation because, again, the government not allow us to stop delivering the electricity to the customer if they don't pay their bill. On this, what I can add, that through different association, we continues to fight and to change that. All the ordinance now are in the discussion in the parliament, and will be to renew to this idea, to forbid and cutting the delivery of the electricity if the customer will not pay the bill.
Okay. May I then add another follow-up question? When the amounts of this receivables to be collected from the Ministry of Energy, when this amount will be collected?
Regarding the amount that will be collected, we succeeded to collect it from the ANPIS. This is the authority we pay the compensation until now, at every level. Regarding the one that need to be paid by the Ministry of Energy, the last changes in the methodology was completely. Last week, in the beginning, we have all the documents prepared. We'll start to submit it and based on the discussion that we have at government level, until end of May, everything will be paid at end of January level.
They mentioned that they have all this amount necessary to be paid in their budget and to not be any problem to recover this was only a problem of, let's say, how we need to present the data in order to be checked and to be sure that they will pay the right amount. Now, after everything was approved, I believe there will not be any delay than the one promised by them.
In respect of receivables, if we go, and I will ask also Ioana to go in our presentation, I think it's slide 17 or 18. It's analysis of the receivables, and it's showing the increase of the value of total outstanding receivables, 2020, 2021, and then 2022 first quarter. Of course, there is an increase which is also related to the increase of the prices in the market. If you look at this evolution, it is true that also what Ms. Popescu was mentioning, we see an impact, I mean, in the period in which it is forbidden for us to disconnect for non-payment. There is a certain deterioration of collection, but I wouldn't say that this is the main element of the business.
I mean, we are implementing all the package of solutions for debt collection, like recovery campaigns, SMS, email, written notices, calling campaigns. Basically, from all this, we are seeing that we are reducing the total outstanding receivables. The fact is still that we are also continuing to go on to these legal proceedings to pursue for these debts. Of course, this has a cost. Basically, we are analyzing all the measures possible in order to decrease the total outstanding costs. We are also looking at appetite of potential investors to acquire a portfolio of overdue debts. As we see now, the interest for this type of transaction is low.
As mentioned before, the collection from the customers is something that we think we are managing, and it's not a worrying element related to the state of the business now.
Okay. I'm asking this question that considering the current liabilities exceeds the current assets and the bank overdrafts reached more than a half of company's market capitalization, I am wondering how big are the solvency issues and how much more the company is able to borrow in case of some negative scenarios.
Referring in terms of the capital, you are referring to the supply subsidiaries or? Because I don't think we are referring.
Yeah, yes. In terms of capital for the supply subsidiary, yes.
We are confident that with the results that we'll continue to post during this year, the negative capital will be reduced. In any case, also Electrica S.A. is supporting the subsidiaries to the various financing schemes, mostly through the cash pooling. We have the intragroup debt that we could convert into equity to get the capitals into a positive part. From point of view of the financing, there is a strong support for us and I think also for our peers in the market from the financiers and from the banking community.
We are still able to mobilize the financing needed to pre-finance the support scheme and to pre-finance the network losses amounts, which are building up in parallel to the amounts that we need to use and to finance the CapEx plan for the distribution. It is very important to see how the reimbursement from the state budget will unfold, whether this will start happening with a certain frequency in a repetitive way and without too much months to pile up to be pre-financed. Considering also the discussions that we had with the authorities via ACUE and also considering the fact that at least for part of the scheme, we see that the mechanism started to function.
I mean, we are referring to the amount that we are getting from the Ministry of Labor, from ANPIS. We are confident that after the beginning part of the scheme, when things were not so clear, this will be sorted out in the past. We are confident that for the end of the year, indebtedness at the group level should be in the usual covenants.
Okay. The last two questions I have, the first one is related to interest rate at which the company is borrowing money. They have these bank overdrafts on the balance sheet.
You are referring to the costs of the borrowing or?
Yeah. Yes, the cost of the borrowing. They are bank overdrafts.
Well, you have a certain degree of information about our overdraft and our loans in our financial statement. Generally, we don't publish more detail than that. What I can say, of course, there is a certain increase of the cost, which is related to, first, the increase of the reference rate. Yeah, if you look at the ROBOR, then of course, there is an increase of the margin also coming from the banks. We are confident that we can manage this and we can recover this, as Ms. Popescu was mentioning.
We can recover this from the 73 RON per MW for the cost of supply on the supply side, and then also to recover part of it from the 3.2%, half of the regulated rate of the return on the distribution side. Of course, we are paying a lot of attention about these elements as well, but it's something that, of course, is to be followed and it depends a lot also on the evolution of general evolution of the interest on the market.
The last question regarding the impairments of trade receivables. Should we expect some increase in these impairments in the future or not, considering high level of trade receivables?
No. Actually, we clean all our receivables that are very old, and our expectation will not be to have any impact from this in the future.
Okay. Thank you. That was all my questions.
As a reminder for our audio participants, if you would like to ask a question, please press star and one on your telephone. We have a follow-up question from Ciopraga Iuliana with WOOD & Co. Please go ahead.
Yeah. As a follow-up question to the discussion about receivables. So if you're not allowed to disconnect, and if you incur losses in terms of receivables from that, are you able to recover the amount somewhat? Because, I mean, the change in legislation is actually causing you losses if you incur these impairments, and are you allowed to recover them somewhat, somehow?
We have two different channels that we act on in this respect. First, we try to change the legislation. Second, we will go to court against all these customers in order to cover our receivables. Because even if we cannot disconnect them, we can act against them if they don't pay their bill.
Thank you.
I don't know if I succeeded to answer to your question, Iuliana.
I understand. You're, in the end, you will be able to disconnect them.
Yes. Even if we are not allowed to disconnect them, we can still go to the court, and we can ask for the payment of the bill.
Thank you.
You should bear in mind that on the distribution side, we do have certain restriction in terms of ANRE regulations, in terms of, you know, when, like, we can ask for guarantees, when we can ask to secure our position, you know, the distribution company in respect of the various supply companies on the market. There is this situation which we faced last year in the distribution, where you had insolvencies of certain partners or certain suppliers, and these elements, yeah, the ones which when you are an unsecured creditor there, it's the possibility to recuperate diminishes.
Thank you.
Coming back, the interdiction to disconnecting the customer, it's until 1st of July this year. After this date, we can restart our activity on the normal way.
Thank you.
Once again, for our audio participants, to register for a question, please press star and one on your telephone. Ladies and gentlemen, there are no further audio questions at this time. I apologize. Ms. Ciopraga Iuliana a has another follow-up question. Please go ahead.
Sorry, I didn't get to finish what I wanted to ask. Regarding supply, in the following quarters, given that there are no recoveries from the old support scheme, we should basically see as margin that RON 70, RON 73 per MW, right? I mean, this is basically why, what we should be seeing in the following quarters as margin in the supply, on the supply segment, but it's all regulated right now. Is that correct? It should be very close to that 73. Is that correct?
Yes. At least that.
When you say at least, the difference would be coming from the last resort, where the margin is a bit higher and what else?
That's correct. This is for this year, taking the lessons from last year, we also put in the budget and scheduled for quantities to be supplied under supplier of last resort. We also took into consideration also to source the energy or the gas for this part. From that side as well, yes.
Thank you. That's all. Thank you so much.
Ladies and gentlemen, there are no further audio questions at this time. I will now pass the floor over to management for any webcast written questions. Thank you.
In order to respond to the written questions, we will have a short five-minute break.
Ladies and gentlemen, we are now to resume our Q&A session. Thank you. Management, you can proceed.
In terms of the questions for the three written questions that were sent. First question is: Please detail the impact of the capping scheme during the reported period. The RON 622 million subsidies for the supply side are part of the total RON 2.2 billion reported income on the supply side. Well, the answer from this point of view is that, the 632 million RON are not included in the RON 2.2 billion revenues. They are recorded as subsidies on other income element account. In terms of the impact of the capping scheme, as we mentioned, it is, there is an impact of cash flow for sure until we get to recuperate the amounts from the state budget.
In terms of capping, as it was defined in the initial scheme, there is also a penalty factor, because we are getting the money up to the level of 525 RON per MW. Then, in the second level, as introduced by the Ordinance 27, we can also recuperate this amount until 15th of July. I think we have explained here to this point in the Q&A that we have answered before. What to expect forward-looking on the supply side, given the new capping scheme applicable starting with quarter two. Do you maintain your budget figure of RON 354 million net profit for the supply side? Yes, we do maintain our budgeted figure.
The revised budget was built based on the elements from Ordinance 27, including the mechanisms there related to recuperation of the losses from the capping scheme from the previous period. What I would say is that for supply business, we are confident that looking forward, under the new capping scheme, in terms of discipline of sourcing of energy and also discipline on controlling the supply costs, we are confident that we can keep the things well managed. The only matter, which is, let's say, unknown, is related to the functioning of the mechanism of repayment from the state budget. How many months will pile up to be financed until we get the respective funds back from the budget?
Also, as previously mentioned, considering the discussions with the authorities, we are confident that this also will be rolled out and will start to function. For the third question, I will invite Ms. Popescu to answer. It's about Hidroelectrica's interest in acquiring Electrica Furnizare.
Okay, regarding the last question, you know, our approved strategy is to have an integrated business. What we'll plan to have is production. It's true that there are a lot of rumors in the market. If maybe Electrica Furnizare will receive a question, it will be analyzed and we'll come back to the investor at the same time. For the moment, our strategy is an integrated business. Distribution, production, supply and services.
There are no further questions.
Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.
Thank you for participating to our event. At any moment, if you have questions, please send your emails to ir@electrica.ro or call us. See you in August at our next web conference. Thank you. Goodbye.
Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.