Romanian insolvent energy producer posts record profit, pays off debt

State-owned power producer Hidroelectrica, which is still under insolvency, saw a record profit of EUR 162 million in the first semester of the year, up by almost half (42%) compared to the first six months of 2014. The growth was due to the reorganization measures ordered by the legal administrator Euro Insol, reads a company press release. The company’s turnover went up by almost EUR 67 million year-on-year, reaching EUR 412 million. The business increased, due to a higher production in the first half of 2015, according to the company. The situation may change in the second half of this year, as the draught in Romania could affect the hydroelectricity production. Hidroelectrica finished paying off its bank loans at the end of June and is now debt free. It is the only insolvent company in Romania which managed to pay its debts in full, according to the judicial administrator. Hidroelectrica declared 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 draught. The company lost about USD 1.4 billion over six years due to those unfavorable long-term contracts, which it cancelled after going into insolvency. editor@romania-insider.com