Fondul Proprietatea evaluates Hidroelectrica at EUR 10 bln

Hidroelectrica, the largest electricity producer in Romania and the largest state-owned company, is valued at RON 50 bln (EUR 10 bln) by the minority shareholder Fondul Proprietatea in the most recent evaluation report, published on April 15 at the Bucharest Stock Exchange, Ziarul Financiar reported.

FP thus revises upwards the estimated value of a state-controlled company by RON 5 bln (EUR 1 bln) compared to the previous evaluation issued in February 2022.

Hidroelectrica's valuation, published by FP on the basis of KPMG's calculations, increased by 10% in just two months.

In the meantime, the Ministry of Energy approved the company's listing on the capital market.

FP seeks to sell part of its 20% stake in Hidroelectrica or the entire stake. Preferably, FP would prefer dual listing, but the Government, as the main shareholder, has not endorsed so far this option.

At a valuation of RON 50 bln and based on the results from 2021, respectively RON 6.7 bln revenues and RON 3.2 bln net profit, the company has a multiple of 7.4 times the revenues and one of 16 times the net profit.

The company has projected total revenues of RON 7.4 bln for 2022, up 11% from 2021, while its net profit is estimated at RON 2.9 bln, down 8% from 2021.

(Photo: Hidroelectrica Facebook Page)