The net profit of Romanian state-controlled hydropower group Hidroelectrica rose by 5% in 2020 to RON 1.45 billion (nearly EUR 300 million), Economica.net reported.

Hidroelectrica thus replaced oil and gas group OMV Petrom as the country's most profitable company.

The power producer managed to improve its profitability despite shrinking revenues and electricity prices, according to Fondul Proprietatea - which owns a 20% stake in the state-controlled power group.

In 2020, Hidroelectrica sold 14.58 TWh of electricity produced in its plants, 1.3% less than in 2019 - while the total amount of electricity sold was 15.96 TWh (including re-sales), 0.7% higher compared to 2019.

During the period, the average selling price of electricity decreased by 6.6% compared to 2019, to RON 214.1 (EUR 41) per MWh.

On the competitive electricity market, the average realized price was RON 238.6 per MWh, 1.6% lower than in 2019.

Based on the company's 2020 results, FP evaluated its stake in Hidroelectrica at RON 5.13 bln (just over EUR 1 bln), half of the Fund's total assets at the end of December 2020.

Thus, according to the FP estimate, Hidroelectrica's total estimated market value is about RON 26 bln (more than EUR 5 bln).

Hidroelectrica is expected to carry out an initial public offering (IPO) for listing its shares on the Bucharest Stock Exchange in the next year after the center-right ruling coalition decided to change a law that banned the sale of shares in state-owned companies.

(Photo: Hidroelectrica Facebook Page)

andrei@romania-insider.com