Hidroelectrica first-half gross profit gains 5.5 percent to RON 509 mln over slashed costs

Hidroelectrica, the state-owned hydroelectricity producer, said its gross profits rose by 5.5 percent to RON 509 million (EUR 114 million) in the first half of this year against the same period of last year on the back of cost cutting measures.

The producer, which is in judicial reorganization, has cut expenses for third party services by 22 percent, while personnel expenses went down 13 percent in the first semester. Its bank debt has fallen to EUR 216 million in June from EUR 841 million two years ago.

Hidroelectrica’s revenues have fallen by RON 110 million (EUR 25 million) to RON 1.49 billion (EUR 335 million) due the soaring output from renewable producers and lower consumption, which has pulled down the trading price of electricity.

The company expects to post a similar profit to last year of around EUR 200 million. The state has an 80 percent stake in Hidroelectrica, while the Property Fund, the closed-end fund managed by Franklin Templeton, has around 20 percent.

Ovidiu Posirca

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