Romania's Hidroelectrica expects lower profits after last year's record EUR 1.2 bln

From a record of RON 6 billion (EUR 1.2 billion, +35% y/y) in 2023 achieved thanks to a record electricity output, Hidroelectrica expects its net profit to decrease to more normal levels in the coming years: RON 4.83 billion in 2024, RON 4.78 billion in 2025, and RON 4.65 billion (EUR 0.9 billion) in 2026, according to documents prepared by the company's management to the shareholders invited for a meeting on February 28.

The company expects to sell 14.8TWh from its own production in 2024 (when its total sales would be 15.9TWh), compared to 14.1TWh in January-September 2023 (latest available data).

The company also disclosed that it plans to disburse as dividends RON 4.38 billion out of the RON 4.83 billion net profit expected this year.

The company thus expects its revenues to decrease by some EUR 300 million (11%) to EUR 2.15 billion in 2026 compared to 2023. The net profit would drop by the same amount (but by 25% in relative terms) to some EUR 910 million in 2026. Consequently, the net profit margin would ease from an outstanding 49.5% in 2023 to a still robust 42.3% in 2026.

Hidroelectrica's market capitalisation is currently RON 54.4 billion (EUR 11 billion) after the price of its shares dropped by 6.5% w/w following several negative reports from international investment banks.

(Photo source: Facebook/Hidroelectrica)