Romania: Hidroelectrica prepares for stock market capitalization

, SEE Energy News

Romanian Minister of Energy Victor Grigorescu said that state-owned electricity producer Hidroelectrica might be listed in six months’ time and it could easily be one of the most profitable listings in Romanian history, but the deadline for the listing should not be speculated at this moment.

Minister Grigorescu said that it is hard to determine the deadline for listing because, besides the technical element, market conditions should be analyzed as well, adding that it is still too early to speculate on the exact date and the state wants to pick the best possible date for Hidroelectrica’s listing.

According to him, there are several technical aspects that need to be clarified before the listing. Firstly, the state needs to clarify and finish the development strategy of Hidroelectrica because the listing must have only one goal – to make the company stronger, with greater role at both national and regional levels. He also said that it is inappropriate to discuss the matter of price at this moment.

Hidroelectrica’s gross profit in the first seven months of the year increased by 13 % compared to the same period in 2015 and amounted to 205 million euros. Hidroelectrica’s turnover during this period amounted to 426 million euros, which is 4 % less than in the first seven months of 2015, mostly due to lower prices in the energy market. According to the results recorded at the end of July this year, Hidroelectrica estimates that it could reach a gross profit of 224 million euros at the end of August. In the first six months of 2016, Hidroelectrica produced 8.9 TWh of electricity, compared to 9.5 TWh during the same period in 2015.