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Romania's Hidroelectrica Jan-July gross profit grows 6% y/y

Hidroelectrica

BUCHAREST (Romania), September 13 (SeeNews) - Romanian hydro power producer Hidroelectrica said that its gross profit jumped by an annual 6% to 971.8 million lei ($253 million/211 million euro) in the first seven months of the year.

Electricity ouput during January-July was approximately 8.768 TWh, majority state-owned Hidroelectrica said in a press release on Tuesday.

The company posted a turnover of 1.94 billion lei in the seven months through July and a net profit margin of 43%, up 5 percentage points compared to the year-ago period.

"The radical restructuring process that Hidroelectrica went through in the last years made it the most profitable Romanian company, by posting an EBITDA of 69% from the turnover in the first seven months of the year," the company said.

On Friday, Romanian investment fund Fondul Proprietatea [BSE:FP], a shareholder of Hidroelectrica, said that it is reviewing strategic options regarding its stake in the hydro power producer.

The decision is part of the investment fund's ongoing commitment to increase value for shareholders and improve the liquidity of the assets in its portfolio, Fondul Proprietatea said.

Fondul Proprietatea owns 19.94% of the issued share capital of Hidroelectrica, representing 32.01% of the fund’s net asset value as at end-June 2017.

The Romanian government owns 80.06% of Hidroelectrica through the energy ministry.

At the beginning of April, Hidroelectrica exited insolvency, which paved the way for a long-awaited listing on the BVB seen as the biggest in Romania's history.

The initial public offering (IPO) of a 15% stake in Hidroelectrica is expected to raise 1 billion euro ($1.06 million), the court-appointed administrator of the company has said.

The government's plans to dual-list a 15% stake in Hidroelectrica on the Bucharest Stock Exchange, BVB, and on the London Stock Exchange have been repeatedly delayed as insolvency proceedings were taking longer than expected, despite the company's strong financial recovery.

Hidroelectrica operates more than 207 hydro power plants with a combined installed capacity of over 6,432 MW.

Shares of Fondul Proprietatea traded 1.19% higher at 0.8520 lei on the BVB at 1202 CET on Wednesday.

(1 euro=4.5980 lei)

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