Romania: Hidroelectrica increases profit show august report, expansion of market trading in SEE region, SEE Energy News
Hidroelectrica company market a profit of 168MEUR at the end of August, which is an increase of 12% compared to gross profit for the first eight months of cumulative 2013.
The main influencers that have generated the financial performance are higher energy sales and, the significant reduction in operating costs due to implementation of a successful strategy to control operational costs.
Restrictive policy accommodated the company’s operating costs, in addition, the negative impact of tax for the special construction of 33MEUR, calculated for 2014.
During the first eight months of the year, Hidroelectrica produced and delivered 12.3 TWh, representing 88, 5% of estimated production for the full year and expects a production of at least 17 TWh in 2014, with 3.1 TWh more than budgeted production.
Increasing the amount of energy produced and delivered – higher by 14.5 % over the first eight months of last year – has fostered the growth of operating income generated, even amid adverse influences induced by the legislation and market conditions.
The Energy regulator ANRE Orders for additional annual amount of energy supplied 1.3 TWh regulated market and reduced sales price regulated market of 28.39 EUR / MWh to 26.03 EUR / MWh and 18% decrease average trading price of energy offered by OPCOM to the previous year, were factors of Hidroelectrica success.
17 TWh will be produced by the end of the year, implementation of effective strategies for the sale of all of the energy produced is in progress
Opening of trading offices in Hungary and Serbia, coordination of actions supported by the review of the portfolio of bank loans, are elements that will generate fiscal year 2014, a record profit of over one billion USD.
If Hidroelectrica would not pay the 89MEUR tax for water plant and 49MEUR as a result of regulated power market fees, profit would be bigger and would allow the company to finance all investments in upgrading existing production capacities and commissioning of new capacities, said Remus Borza, Hidroelectrica Judicial Administrator.