Although insolvent, Hidroelectrica posts a record profit of RON 1.073 bn after 11 months

Romania’s largest energy producer, owned by the state, Hidroelectrica, recorded, after the first 11 months of this year, a record profit of RON 1.073 billion, up by 28 percent from the same period of last year, when the company posted a profit of RON 841 million, a press release informs on Monday. These good results are due to higher energy production and reducing costs.

The insolvent company, made a profit of RON 130 million in November 2014, 66 percent higher than the earnings in similar period of the last year .

The company estimates will end 2014 with a profit of RON 1.2 billion, over three times higher than the result recorded by the company in 2010, when it posted a record production of 19.8 TWh.

The company recorded, in the first 11 months of 2014, a turnover of EUR 3.08 billion, up by 12 percent compared to the similar period in 2013, and thus Hidroelectrica is to record, this year, the highest turnover in its history, of over RON 3.3 billion respectively.

It seems the company is very close to exit the insolvency period and recently announced is negotiating for the purchase of some hydropower units in neighboring states like Serbia and Montenegro.

2015 will be the year of retrofittability, according to Remus Borza, the head of Euro Insol – the company’s judicial administrator. The company plans to invest EUR 400 million to refurbish the large plants with 1,400 MW aggregate power.

Romanian state-owned hydro power producer will likely exit insolvency in May-June 2015 and list a minority stake in the second half of that year, Borza also said.

 

energy producerHidroelectricahydropower unitsinsolvencyproductionrecord profitremus borzaretrofittability
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