COMPANIES ECONOMY ENERGY INVESTMENTS

Hidroelectrica posts record profit


+Company carries out ample investment programme * Two more hydropower plants to come online in 2016

In 2015, Hidroelectrica registered a gross profit of RON 1,100,083,000 and a turnover of RON 3,188,692,000.

“It is the best financial result ever obtained by Hidroelectrica compared to its energy production. Thus, in 2015, Hidroelectrica produced 15.9 TWh, down by 2.5 TWh compared to 2014, back when Hidroelectrica reported a production of 18.4 TWh, a turnover of RON 3.4 bln and a profit of RON 1,157,959.

Hidroelectrica’s profit in 2015 is 3.5 times higher than the one registered in 2010 (RON 292 M) at a record production of 19.8 TWh. It is the third consecutive year in which Hidroelectrica is on profit. The total profit registered in the three years of insolvency surpasses RON 3.1 bln, proving the viability and efficiency of the Restructuring Plan implemented by Euro Insol. During the time that passed since the start of the insolvency procedure, Hidroelectrica optimized its production costs, the latter reaching RON 110/MWh after standing at RON 184/MWh in 2012.

Hidroelectrica has managed to pay all of its debts at their nominal value of over RON 4 bln, has lowered its number of employees from 5,239 to 3,443 and has become the most profitable company in Romania, registering an EBITDA of 63 per cent of turnover in the last two years,” Remus Borza, representative of Hidroelectrica’s trustee in bankruptcy, stated.

In 2015, Hidroelectrica adopted a 5-year investment budget of EUR 1.3 bln. EUR 75 M were allocated for the technological upgrading of the Stejaru power plant, a contract signed in May 2015, and EUR 240 for the upgrading of the Vidraru, Mariselu and Raul Mare Retezat power plants. The technological upgrade contracts will be awarded later this year, through international tendering. Group 2 of the Racovita hydropower plant (30 MW installed power) came online in 2015, following an investment of EUR 160 M. The longest headrace tunnel built in Romania since 1987 was finished at Siriu Surduc, measuring 16,642 metres, following an investment of EUR 150 M. In 2015, the financing for the Dumitra (21 MW installed power) and Bumbesti (41 MW) hydropower plants resumed, the former set to come online in May 2017 and the latter in October 2017. The two power plants’ renegotiated value is EUR 200 M.

The hydropower plant in Bretea (12 MW) will come online in March 2016, following an investment of EUR 46 M, while the hydropower plant in Rastolita (24 MW) will come online in November, following an investment of EUR 333 M. In 2018, Hidroelectrica will bring the Siriu Surduc hydropower plant (50 MW) online, following an investment of EUR 350 M.

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