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February 25, 2021
BUSINESS

Hidroelectrica’s profit up by 12 pc

Hidroelectrica has registered in the first eight months a gross profit of RON 719 M, up by 12 per cent compared to the results registered in the same period last year, a company communiqué informs. The main sources that generated this financial performance consisted on the one hand of higher energy sales, and on the other hand of a significant reduction in operational expenditures, as a result of implementing a successful operational cost control strategy, the company representatives explained.
According to them, the company’s restrictive policy in what concerns operational costs has accommodated the negative impact of the tax introduced on special constructions, whose level for 2014 was calculated at RON 150 M.
In the first eight months of the year Hidroelectrica produced and delivered 12.3 TWh, representing 88.5 per cent of the production estimated for the whole year, and forecasts a production of at least 17 TWh in 2014, 3.1 TWh higher than the budgeted production.
The growth of the quantity of energy produced and delivered, namely of 14.5 per cent year-on-year, has supported the growth of operational revenues, even against the backdrop of negative influences induced by the legislation and by market conditions. Thus, ANRE’s orders to supplement the annual quantity of energy delivered on the regulated market by 1.3 TWh and to lower the sale price on the regulated market from RON 125 per MWh to RON 115 per MWh, as well as the 18 per cent year-on-year drop of the average transaction price of energy offered on the PCCB, represented factors that did not favor Hidroelectrica’s activity.
“The production of at least 17 TWh which will be obtained by the end of the year, the implementation of efficient sale strategies for the whole quantity of energy produced, the opening of trading representations in Hungary and Serbia, the coordination of sustained actions to revise the bank loans portfolio, are elements that will generate a record profit of over RON 1 bln in fiscal year 2014,” Remus Borza, Hidroelectrica’s trustee in bankruptcy, stated.
“If Hidroelectrica were to not pay the RON 396 M tax on the water used, representing the highest level this tax has in the European Union, if Hidroelectrica were to not pay the RON 150 M special constructions tax, if Hidroelectrica were to not lose RON 220 M as a result of the energy delivered on the regulated market, then the company’s profit would be of at least RON 1.8 bln, thus allowing the company to finance all investments in upgrading existing production capabilities or to introduce new capabilities,” Borza added.

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