Hidroelectrica's profit up 70% YoY in Q1, despite 30% lower output

Hidroelectrica, the largest energy producer in Romania, announced a net profit of RON 1.29 bln (EUR 260 mln) in the first quarter, 70.2% higher compared to the same period last year.

The net profit margin exceeds 50%. Not even the 30% drop in output amid adverse natural conditions, could depress the earnings of the state-controlled hydropower group that heads towards a 15%-20% IPO at Bucharest Stock Exchange (BVB), under which Fondul Proprietatea would sell its participation.

Hidroelectrica's revenues rose by 69% YoY to RON 2.35 bln (EUR 520 mln) in Q1, according to the quarterly report of Fondul Proprietatea (FP).

"The total electricity sold by Hidroelectrica plunged by 30% YoY to 3.20 TWh. The average selling price of electricity was RON 655.4 per MWh, 134% more compared to the same period of the previous year. At the end of March 2022, the company's cash position amounted to RON 4.85 bln," according to the FP report.

According to a note to investors published on Friday, May 13, by FP, the last valuation of the 20% stake the Fund holds at Hidroelectrica is RON 11.37 bln, which puts the entire value of the company at RON 56.85 bln (over EUR 11 bln).

(Photo: Hidroelectrica Facebook Page)