Hidroelectrica expects robust revenues this year, ahead of possible IPO

State-owned Romanian company Hidroelectrica, the largest electricity producer in the country, expects its revenues to rise by 11% to RON 7.4 bln (EUR 1.5 bln) this year, while its net profit would edge down by 8% to RON 2.9 bln, still delivering an outstanding net profit margin of nearly 40%.

At a dividend payout ratio of 85%, this would generate RON 2.47 bln (EUR 500 mln) dividends to shareholders, out of which nearly RON 2 bln (EUR 400 mln) would go to the state and the rest of RON 492 mln (around EUR 100 mln) to Fondul Proprietatea, according to Ziarul Financiar.

For 2021, Hidroelectrica reported a net profit of RON 3.15 bln and RON 2.7 bln dividends distributed at the same payout ratio of 85%.

The company's shareholders, namely the Ministry of Energy (80%) and Fondul Proprietatea (20%), will meet on April 28 to vote on the financial planning drafted by the company's management.

The total expenditures are planned at RON 3.7 bln, 28% more compared to 2021, especially against the background of increasing spending on goods and services.

Fondul Proprietatea "will list at least 15% of state-owned hydropower company Hidroelectrica" in Bucharest as soon as possible, without waiting for the Government to join in, Energy Minister Virgil Popescu previously told Reuters.

Minister Popescu thus confirmed that the Government, as the majority shareholder at Hidroelectrica, will support the listing of the company's shares - as required by FP. No further steps towards the expected IPO were announced since January, though.

(Photo: Hidroelectrica Facebook Page)