Hidroelectrica, one of the most profitable state-owned companies in Romania, sign a contract with Banca Comerciala Romana, Romania’s biggest lender, for a credit line worth RON 85 million in order to be used for the issuance of bank guarantee letters. The contract is valid until December 18, 2018.
Of the total amount, RON 36 million will be used to issue a good-value bank guarantee letter in favor of Romelectro to guarantee payments for the equipment delivered for the retrofit of the Stejaru Power Plant.
The rest of the amount is required for the issuance of a bank guarantee letter of good execution for the sale and purchase contracts for electricity.
Hidroelectrica obtained a net profit of RON 1.36 billion last year, the highest level in the history of the company. In 2016, the company’s net profit was RON 1.228 billion.
In the first quarter of this year, Hidroelectrica had a net profit of RON 485 million, compared to RON 399 million in the same period in 2017, due to the improved hydrological situation. EBITDA margin rose from 67 percent in 2016 to 69 percent in the past year and 74 percent in the first quarter of this year.