Romanian energy producer Hidroelectrica's profit drops 41% in first half

State-owned Hidroelectrica (BVB: H2O), Romania’s largest energy producer, posted a sharp decline in financial results in the first half of 2025 due to poor hydrological conditions and lower electricity prices, according to the financial results published at the Bucharest Exchange.

Revenues fell 16% year on year to RON 4.3 billion (EUR 860 million), while net profit dropped 41% to RON 1.6 billion (EUR 320 million), the company said on August 13. Operating profit declined 42% to RON 1.75 billion (EUR 350 million).

The net margin stood at 37% in the first six months, down 30% from the same period in 2024.

Gross electricity output decreased by 26% to 6,263 GWh, with total electricity sold falling 23%. Meanwhile, electricity purchases rose 62% to 674 GWh.

Despite the weaker results, Hidroelectrica said its performance was slightly above budget, with gross profit exceeding forecasts by 1%.

The company’s market capitalisation is nearly RON 55 billion (EUR 11 billion). Shares, traded under the symbol H2O, dropped by 3% y/y.

The company already announced the dividends paid out of last year’s profit, resulting in a 7.4% dividend yield. The Romanian state, through the Ministry of Energy, holds about 80% of the company’s shares.

(Photo source: Inquam Photos/Octav Ganea)