News

Fondul Proprietatea evaluates Hidroelectrica at EUR 3 billion

Published

February 7, 2016

Comments

comments icon

0

Share

Published:

February 7, 2016

Comments:

comments icon

0

Share

Fondul Proprietatea (FP) assessed the 19.9% equity stake in Hidroelectrica SA in December to be worth RON 2.65 billion (EUR 586 million), valuing the whole company is at EUR 3 billion, up 22% from the previous estimate, The Diplomat reported. The revisions of December 2013 and 2014 were upward, but the last update had the most significant increase. Hidroelectrica is the largest energy producer in Romania, 80% owned by the government. The company is the most profitable in the state portfolio, which is why it earned the title “pearl of the crown,“ the article said. Last year Hidroelectrica had gross profit of EUR 221 million and turnover of EUR 704.7 million, according to administrator Remus Borza. The hydropower producer was declared insolvent in 2012.

In 2015, Hidroelectrica’s output fell 2.5 TWh to 15.9 TWh. Turnover was EUR 760 million and profit stood at RON 1.1 million, according to the Hidroelectrica press release. In the past two years the company has reduced its headcount from 5,239 to 3,443 and its earnings before interest, tax, amortisation and depreciation (ebitda) was 63% of the turnover, Borza added, according to a report by the Business Review. The budget set by Hidroelectrica in 2015 for the next five years was of EUR 1.3 billion, of which EUR 75 million was allotted to the revamping of the Stejaru plant, and another EUR 240 million to the revamping of the Vidraru, Mărişelu and Râul Mare Retezat plants, with the contracts to be “attributed during this year through international auction,” reports the press release.

The latest estimates are that Hidroelectrica will come out of insolvency in May or June, so the listing on the Bucharest Stock Exchange will take place next year, but Borza aims at November of this year, portal Nine o’Clock said. In 2013, the government decided to list the company on the Bucharest Stock Exchange, by increasing its capital and launching an IPO for the newly issued package of 15% of the registered capital existing prior to the increase.

The Competition Council has sanctioned Hidroelectrica and its ten contractual partners, mainly electricity traders, with fines of EUR 36.57 million in November for concluding irregular agreements.

Related Articles

serbia law on energy changes

Government of Serbia adopts changes to Law on Energy

13 November 2024 - The Government of Serbia adopted the changes to the Law on Energy and sent them to the National Assembly for a vote

hse slovenia prapretno solar trbovlje hrastnik stokelj

Slovenia’s HSE to expand Prapretno solar power plant, install 7 MW battery

13 November 2024 - The utility intends to sell 10% of production from the second phase of its Prapretno plant to the municipalities of Trbovlje and Hrastnik

Vucic Serbia wants Azerbaijan participate major gas power project

Vučić: Serbia wants Azerbaijan to participate in major gas power project

13 November 2024 - Serbian President Aleksandar Vučić said the government is starting talks with Azerbaijan to build a 1 GW gas power plant or two smaller ones

Turkey offshore wind power potential 2040 estimated 7 GW

Turkey’s offshore wind power potential by 2040 estimated at 7 GW

12 November 2024 - The World Bank Group and Turkish Ministry of Energy and Natural Resources outlined the 2040 scenarios for the potential for the country's first offshore wind farms