+ Because of low water levels, turnover down 18 pc year-on-year in the first five months
In the first five months of the year, Hidroelectrica registered a turnover of RON 1.29 bln. During this period, the company produced 6.9 TWh of electricity. Against the backdrop of a 1.4 TWh drop in production, because of lower water levels in the first months of 2016, combined with a drop in the average tariff, from RON 164 in 2015 to RON 156 per MWh in 2016, the turnover dropped by 18 percent year-on-year. Because of the same reasons, the financial results have dropped by 12 percent, from RON 635 M in the first five months of 2015 to RON 560 M during the same period this year. As a result of the continuous drop in costs and of the optimisation of activities and flows, factors imposed by the trustee in bankruptcy through the Restructuring Plan, the gross profit margin has grown from 40 percent in 2015 to 43 percent in 2014. On May 31, Hidroelectrica had a liquidity of RON 1.6 bln, growing by RON 100 M per month. In the first five months, Hidroelectrica earned RON 7.4 M from bank deposit interests alone. Insolvency was the only period in which added value was generated for shareholders.
“During the 4 years of insolvency, Hidroelectrica has gone through a radical restructuring process. Following this process, Hidroelectrica became the most profitable company in Romania, registering an EBITDA of 63 percent of turnover in the last 3 years. Hidroelectrica’s insolvency has proved that state-owned companies have potential too, has showed that they too can generate stability, confidence, performance and profit, if correctly managed.”
“Today, Hidroelectrica is an aspirational model for other state-owned companies too and not only for them. Against the backdrop of these positive developments, Hidroelectrica will register in 2016 a record profit of RON 1.3 bln. Today, our reservoirs are filled at 79 percent of capacity, compared to 67 percent on the same date last year. This means a reserve of 2.5 TWh, which allows us to sell more and at a higher price during the summer, thus maximising our revenues and implicitly our financial result.”
“Also in 2016, Hidroelectrica will register another record: the highest price obtained by a company as a result of a floatation process. If we multiply the EBITDA just 10 times, although in the energy industry the multiplier is 15-18 times, the company’s value would be EUR 5 bln. A package of 15 percent of share capital, which is the object of the IPO, means EUR 750 M, by far an absolute record registered by a Romanian company following its floatation on the stock exchange,” lawyer Remus Borza, the representative of Hidroelectrica’s trustee in bankruptcy, stated.