Profit of Romania’s Hidroelectrica surges by 42% to record EUR 1.28 bln in 2023

Hidroelectrica (BVB: H2O), the largest energy producer in Romania, reported its net profit surged by 42% y/y to almost RON 6.34 billion (EUR 1.28 billion), while its revenues increased by 30% to RON 12 24 billion, according to preliminary financial results published by the company.

Hidroelectrica’s market capitalization reached RON 56.3 billion (EUR 11.3 billion) after its shares rose by 0.89% on February 27 upon the disclosure of the preliminary financial results. The company’s shares were dragged down by 2.27% ytd by some negative reports issued by foreign investment banks, remaining, however, 17% above the July 2023 IPO price.

For 2023, the preliminary result per share of Hidroelectrica is RON 14.11, which at a dividend payout rate of 90% represents a dividend of RON 12.7 per share, the equivalent of a gross yield of just over 10% compared to the current market price.

For 2024, the company estimates that it will obtain a net profit of RON 4.84 billion, 24% down y/y, and total revenues of RON 10.9 billion (-11% y/y), mainly as an effect of less electricity produced during this year compared to last year – when a six-year record was hit.

On the upside, Hidroelectrica expects to obtain in 2024 an average price 2% higher for its electricity, compared to 2023.

(Photo source: Inquam Photos/Octav Ganea)