Hidroelectrica posts record six-month profit of EUR 207 million in H1

Romania’s state-owned power utility Hidroelectrica has reported a record six-month gross profit of RON 962 million (around EUR 207 million) in the first half of 2018, Business Review reported.

The result, which was up 34% compared to H1 2017, was mainly attributable to cost control.

In H1 2018, Hidroelectrica had turnover of RON 1.99 billion (EUR 428 million), an increase of 17% year-on-year, while operating expenses decreased by 2%, according to the Romanian media.

A week ago, the company announced RON 1.1 billion (EUR 236 million) in dividends for 2017, a 10% increase year-on-year.

In 2017, the company registered a record annual gross profit of RON 1.6 billion (EUR 343.5 million), and an all-time high annual turnover of RON 3.2 billion (EUR 687 million), according to the Romanian media.

Of a total of RON 1.1 billion (EUR 236 million) in dividends, or 90% of Hidroelectrica’s profit in 2017, RON 0.988 billion (EUR 214 million) went to the state, represented by the Ministry of Energy, and RON 0.226 billion (EUR 48.5 million) to the minority shareholder, the Property Fund.

“Production and sales in the first half of 2018 give us every reason to believe that the current year will be even better for our company,” Hidroelectrica CEO Bogdan Bogdea said, according to a press release on the company’s website.

Hidroelectrica generated 9,345 TWh of electricity in 2018 through June 30, a 20% increase year-on-year.

In May, Bogdea said that company was considering the acquisition of wind and solar plants in Romania, as well as energy companies abroad.

According to the Romanian media, the Romanian government plans an initial public offering (IPO) for a 10% stake in Hidroelectrica, though no clear deadline has been set.