“HIDROELECTRICA” S.A. Announces Admission to Trading and First Day of Dealings


Get real time updates directly on you device, subscribe now.

SOCIETATEA DE PRODUCERE A ENERGIEI ELECTRICE IN HIDROCENTRALE “HIDROELECTRICA” S.A. (“Hidroelectrica” or the “Company”), Romania’s leading electricity producer with a 100% renewable portfolio and one of the largest hydropower companies in Europe, announces the admission to trading (“Admission”) of its shares (the “Shares”) on the Premium tier of the regulated market of the Bucharest Stock Exchange (the “BSE”). Trading will commence at 10:00 AM EEST under the symbol “H2O”.
As announced on 5 July 2023, the initial public offering by Fondul Proprietatea S.A., an alternative investment fund managed by Franklin Templeton International Services S.À R.L, of 78,007,110 Shares was priced at RON 104 per Share, implying a market capitalisation of RON 46.8 billion (€9.4 billion) at Admission.
Bogdan Badea, Chief Executive Officer of Hidroelectrica, commented: “We are delighted that Hidroelectrica’s shares are now listed and trading on the Bucharest Stock Exchange. This represents the final stage of an intense and lengthy process which has delivered the
results we witness today.
The success of the IPO is, on one hand, a historic achievement for the Company and, on the other hand, evidence of the immense potential that the Romanian capital market has to contribute to our growth as an economy, as a country, and as a nation.
I would like to thank everyone who has made this landmark listing possible, for their commitment, consistency, care, and diligent work in realising this project.
The significant interest in the IPO from both domestic and international investors is testament to both the quality of our business and its future prospects, and the listing on the Premium tier of the BSE’s regulated market will underpin Hidroelectrica’s long-term growth. On behalf of the Company, I extend a warm welcome to all our new shareholders. We look forward to sharing the future successes of the business with you, as we drive value creation while contributing towards Romania’s energy transition goals.”

Hidroelectrica is the leading electricity producer in Romania in terms of electricity produced and one of the largest hydro players in Europe. It owns and operates 182 hydropower plants, five pumping stations and one wind farm, which are strategically positioned in eight geographical branches across Romania. The total installed capacity of the Company’s hydro assets is divided into storage hydropower plants, run-of-river hydropower plants and pumping stations.
Hidroelectrica has a 100% renewable portfolio with an installed hydropower production capacity of approximately 6.3 GW and an installed onshore wind capacity of 108 MW from the Crucea wind farm.
Between 2018 and 2022, the Company had an average market share of approx. 29% in terms of total electricity delivered to the grid (as per the Romanian Energy Regulatory Authority (“ANRE”) annual reports).
Hidroelectrica is one of the largest hydropower producers in Europe, generating 13.6 TWh of electricity from hydro sources in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 (all representing gross production). The 2022 production level reflects less favourable hydrological conditions, due to a severe drought.
In addition to the production of electricity, Hidroelectrica supplies electricity to the Romanian wholesale and retail electricity markets. The Company’s market share in electricity supplied to retail customers has grown from 1.3% in 2020 to approximately 8% as at December 2022, according to ANRE. The number of Hidroelectrica’s retail customers has increased from 2,465 in 2020 to more than 482,000 in 2022. The Company supplied approximately 3.7 TWh of electricity to final consumers in 2022, according to ANRE.
In the years ended 31 December 2022, 2021 and 2020, the Company generated consolidated revenue of RON 9,452.0 million, RON 6,489.3 million and RON 3,841.4 million, respectively. In the same period, the Company reported profits for the year of RON 4,464.0 million, RON 3,116.1 million and RON 1,558.0 million, respectively.
In the first quarter of 2023, the Company generated consolidated revenues of RON 3,272.1 million, driven by higher total energy sold (4.8 TWh GWh in 1Q23) on all markets, including wholesale, retail and balancing markets. This translated into a total Adjusted EBITDA of RON 2,184.2 million and profit for the period of RON 1,723.4 million for 1Q2023, compared to total Adjusted EBITDA of RON 1,702.7 million and reported profit for the period of RON 1,287.9 million for 1Q2022.
Immediately prior to the IPO, the Shares are owned by the Romanian Ministry of Energy (80.06%) as well as Fondul Proprietatea (19.94%). Fondul Proprietatea held a minority shareholding in Hidroelectrica since the fund was established in 2005.

President Klaus Iohannis said on Wednesday that the listing of hydropower producer Hidroelectrica on the Bucharest Stock Exchange (BVB) will bring economic, financial and investment benefits to Romania.

“The long-awaited listing of Hidroelectrica, Romania’s largest power producer and the most profitable state-owned company, has multiple valences and will bring economic, financial and investment advantages for Romania. Just shortly after its 140th anniversary, the Bucharest Stock Exchange celebrates a new landmark moment. The most valuable initial public offering reverberates success not only regionally, but at global level too. It is a clear proof of the maturity of the Romanian capital market, but also the expression of the potential of the Bucharest Stock Exchange,” reads the head of the state’s message delivered by presidential advisor Cosmin Marinescu at the event organized by BVB.

In the president’s opinion, one of the positive effects of the emerging market status under which the Romanian capital market has been operating since 2020 is the significant increase in investment interest for the offer of the Bucharest Stock Exchange.

After a period of substantial growth, the Stock Exchange capitalization has already exceeded 200 billion RON, and the number of investors has increased more than 2.5 times in recent years. The capital market has today become a serious financing option, an instrument for facilitating investments in various sectors of the economy, among which the energy sector stands out both by the number of listed companies and particularly by the stock market capitalization,” Iohannis explained.

According to the president, the ten already listed energy and natural gas companies account for an aggregate stock market capitalization of over 70 billion RON, representing about a third of the total.

These developments send the strongest message that Romania is open to investors and knows its strategic and economic interests, in order to establish itself as a relevant regional player, both on the capital market and in the energy sector,” he added.

In his turn, Prime Minister Marcel Ciolacu, who attended the event of Hidroelectrica SA’s listing on the Bucharest Stock Exchange, alongside the president of the Senate, Nicolae Ciuca, and the governor of the National Bank of Romania (BNR), Mugur Isarescu, organised at the central bank, said that the listing on the stock exchange of the largest national energy producer, Hidroelectrica, is a historic moment for Romania and an example that long-term consolidated performance can also be achieved in companies where the Romanian state is a majority shareholder.

“Today we are living a historic moment for Romania – the listing on the Stock Exchange of the largest national energy producer, Hidroelectrica. We are talking about the most valuable energy company, an example that long-term consolidated performance can also be achieved in companies where the Romanian state is a majority shareholder,” said Ciolacu.

He stressed that to achieve performance there must be quality human resources, intelligence, reliability and professionalism.

If we look at the challenges of the last 3 – 4 years, there has been something more – a continuous adaptation to the economic challenges, both internal and regional, and to the international geopolitical context. Hidroelectrica has managed to do this. This is why today’s moment is confirmation of this success,” the prime minister said.

According to him, besides the financial results, Hidroelectrica is committed “to directly serving the interests of Romanians”.

“It has supplied electricity at a fair price, protecting citizens against profiteering and energy crisis. This responsible and consumer-oriented approach has helped the population and demonstrated that Hidroelectrica is a company that understands the expectations and problems of Romanians,” he added.

According to the head of the Executive, “Hidroelectrica is and will remain a company belonging to Romanians”.

I would like to clarify today that Hidroelectrica is and will remain a company belonging to Romanians. After the listing on the Stock Exchange, the Romanian State retains its full 80 percent stake. Today we open the possibility for Romanian citizens and other institutional investors to become shareholders and enjoy the success and growth of a successful company. It is an essential step to democratize and bring this energy pearl of the country closer to the citizens. By participating as shareholders, Romanians can directly benefit from the development potential of this great energy producer,” said Marcel Ciolacu.

He also pointed out that the listing of Hidroelectrica on the Stock Exchange brings benefits to the Romanian economy in general.

“Attracting foreign capital in this listing will strengthen Romania’s position and support the country’s economic development. In addition, the strict rules and transparency required by the capital market will impose a more rigorous control that guarantees social and environmental responsibility. Thus, natural resources will be protected and used in a sustainable and responsible way,” Ciolacu said.

DONATE: Support our work
In an ever changing and challenging world, the media is constantly struggling to resist. Romania Journal makes no exception. We’ve been informing you, our readers, for almost 10 years, as extensively as we can, but, as we reject any state funding and private advertising is scarce, we need your help to keep on going.
So, if you enjoy our work, you can contribute to endorse the Romania Journal team. Any amount is welcome, no strings attached. Choose to join with one of the following options:
Donate with PayPal
Donate by Bank Wire
Black Zonure SRL
UniCredit Bank. Swift: BACXROBU
RON: RO84 BACX 0000 0022 3589 1000
EURO: RO57 BACX 0000 0022 3589 1001
USD: RO30 BACX 0000 0022 3589 1002

Leave A Reply

Your email address will not be published.