Romania: Hidroelectrica dividend payout

4. May 2020. / SEE Energy News

The shareholders of the largest Romanian electricity producer Hidroelectrica will vote on the management’s proposal to distribute 90 % of last year’s 290 million euros net profit as dividends, at the next meeting scheduled for 26 May.

Since the Romanian state holds 80 % stake in the company, it will also receive the pajority of the payout – about 206 million euros, while private investment fund Fondul Propriatetatea (FP) with 20 % stake will get 54 million euros from last year’s profit.

In late March, Hidroelectrica said that it has budgeted a lower profit for this year, as a result of the decrease in revenues, mainly due to the obligations to sell on the regulated market. According to the draft 2020 budget, the total revenues of the company will be around 800 million euros, compared to 890 million euros in 2019. The decrease is mainly determined by the obligation to sell 3.15 TWh of electricity (total production is estimated at 14.7 TWh) at the regulated price of 21.2 euros/MWh. Due to this obligation, Hidroelectrica has a minus in revenues of over 80 million euros. However, the company’s investment budget is huge, namely 880 million euros and most of it is represented as acquisitions, for which an amount of 775 million euros is allocated. Hidroelectrica is involved in ongoing process of acquiring CEZ assets in Romania (electricity distribution and supply in Oltenia region and wind farms in Dobrogea).

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