Fondul Proprietatea says new energy price regulations cut 5.3% of Hidroelectrica's value

Investment fund Fondul Proprietatea, which owns nearly 20% of the state-controlled power company Hidroelectrica, revised downwards the estimated value of its stake in the latter to RON 11.26 bln (EUR 2.2 bln) as of the end of October – 5.3% less compared to the end of July.

The reevaluation was calculated based on multiples "and relevant regulatory changes to the reporting date," Fondul Proprietatea explained.

"Considering the current context of the energy market and the Government Ordinance no 153/11 November 2022, the Sole Director of Fondul Proprietatea [Franklin templeton] analyzed the impact on the valuation of the holding in Hidroelectrica and updated the valuation accordingly," reads FP's note to investors.

Hidroelectrica is the largest holding in the FP portfolio, representing 76.93% of the NPV.

FP's net assets thus decreased from RON 15.4 bln at the end of September to RON 14.6 bln at the end of November. In the same period, its total assets declined from RON 15.5 bln to RON 14.7 bln.

(Photo source: Facebook/Hidroelectrica)