Fondul Proprietatea doubles estimated value of Hidroelectrica to EUR 12 bln

Fondul Proprietatea has doubled in just a year to RON 12 bln (EUR 2.4 bln) the estimated value of its 20% stake in hydropower company Hidroelectrica, Bursa.ro points out based on public reports of FP, arguing that this could be a marketing move before the IPO planned for early next year.

The implicit value of the company would be EUR 12 bln, resulting in a PER ratio of 13 (based on RON 4.6 bln net profit projected for the whole year) – well above the ratios where OMV Petrom (2.7), Romgaz (5.4) or Nuclearelectrica (5.5) trade.

However, based on Hidroelectrica’s fundamentals, Bursa daily admits that Hidroelectrica’s shares might still hold growth potential even after what might seem to be an inflated IPO price.

The company’s electricity production shrunk by over a quarter in January-September amid adverse weather conditions. On the other hand, the energy market was far from a normal year, and the record prices on the spot market have already decreased gradually.

(Photo source: Facebook/Hidroelectrica)