Hidroelectrica posts record RON 962 million net profit in H1 2018

Hidroelectrica, a state-owned hydropower company, has posted a record profit in the first half of this year, due mainly to controlling costs, the company said on Tuesday.

The company recorded a gross profit of RON 962 (around EUR 207 million), the largest in its history, up 34 percent from H1 2017.

Hidroelectrica’s turnover grew by 17 percent year-on-year in the first half of this year, to RON 1.99 billion (EUR 428 million), while operating expenses declined by 2 percent.

In 2017, Hidroelectrica has registered a record gross profit of RON 1.6 billion.

Hidroelectrica, Romanian state’s most profitable company, cut investments with 38 percent in 2017 compared to estimates.

The company had total revenues of RON 3.29 billion last year, 5 percent under budget, with power production reaching 14 TW, slightly under estimated level due to hydrologic conditions.

These numbers suggest Hidroelectrica recorded a gross profit margin close to 50 percent in 2017, considered outstanding for a company facing competition.

But Hidrolectrica took advantage in the last few years of rising electricity prices and of low production costs, due to its hydropower cheap production sources.

Romanian government plans an initial public offering (IPO) for a 10 percent stake in Hidrolectrica, but no clear deadline has been announced so far.