Insolvent Romanian power producer records EUR 203 mln profit

Romania’s largest power producer Hidroelectrica posted a pre-tax profit of RON 900 million (EUR 203 million) in the first nine months of the year. The third quarter result was below those recorded in the first two quarters, due to the drought that affected Romania. However, the company’s legal administrator Remus Borza expects that the profit for the whole year will be over RON 1 billion (EUR 225 million) and close to the one recorded last year, reports local Economica.net. The company’s turnover amounted to about EUR 550 million in the first nine months, which means that the producer had a profit margin of 35%. Hidroelectrica went into insolvency in June 2012 as the company was losing money because of several large contracts to sell electricity below market prices corroborated with lower electricity production due to the draught. The company will not exit insolvency this year. editor@romania-insider.com