Romania's top electricity producer posts record results

Romania’s largest electricity producer Hidroelectrica ended 2014 with record results, according to a statement of the company. Hidroelectrica had a turnover of RON 3.4 billion (EUR 765 million) in 2014, a new record high. Its gross profit amounted to RON 1.2 billion (EUR 270 million), this also being the highest value ever registered by the company. The company’s revenues increased by 10.5% compared to 2013, as it sold 24% more electricity, but at lower prices than in the previous year. The production costs also went down, to the lowest level in the last five years, of RON 108 per MWh (some EUR 24). This helped the company increase its profits. The gross profit went up by a third compared to 2013. The net profit increased by almost 35%, to RON 967 million (EUR 217 million) while the net profit margin went up to 28% of the total sales. The company also managed to reduce its debt by some EUR 266 million (or 60%) compared to end-2013. Hidroelectrica’s liabilities were RON 775 million (EUR 175 million) at December 31, 2014. Hidroelectrica entered insolvency in June 2012. At that time, the company’s debts totaled almost EUR 1 billion. The company is expected to exit reorganization in mid-2015. Hidroelectrica’s legal administrator is insolvency firm Euro Insol, which is managed by lawyer Remus Borza. The Romanian state is the majority shareholder of the company, holding an 80% stake, while Romanian investment fund Fondul Proprietatea owns the remaining 20%. Irina Popescu, irina.popescu@romania-insider.com