The earnings before interest, depreciation and amortization (EBITDA) of Hidroelectrica, the largest electricity producer in Romania, shrunk by 19.5% in the first nine months of the year, compared to the same period of 2019, according to the quarterly financial report of local investment fund Fondul Proprietatea (FP), quoted by Ziarul Financiar. FP owns 20% in the state-controlled hydropower group.

Hidroelectrica's EBITDA was RON 1.92 billion (EUR 395 million) in nine months of 2020, 19.5% lower compared to the same period last year.

However, the company's net profit edged down by only 4% to RON 1.26 bln (EUR 258 mln).

The drop in EBITDA resulted from lower deliveries and lower prices - both reflecting subdued demand.

In the first nine months of 2020, Hidroelectrica sold 10.87 TWh of electricity, 9.7% less than in the same period of 2019.

The average selling price of electricity also decreased by 9% to RON 205.3 (EUR 42.2) per MWh.

Thus, the company's turnover shrank by 16% in January-September compared to the same period last year, to RON 2.8 billion (EUR 575 million).

Fondul Proprietatea estimates the value of its 20% stake in Hidroelectrica at RON 4.7 bln (just under EUR 1 bln) at the end of September, which means that the whole state-owned company is valued at RON 23.5 bln (EUR 4.8 bln).

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andrei@romania-insider.com