Hidroelectrica will be listed on the power exchange this year if it solves the problem of unprofitable investments in the amount of two billion euros by the end of March, said Ovidiu Agliceru, General Manager of the company.
If the problem of loss-making investments is not resolved in the first quarter of this year, entry on the power exchange will be postponed.
Agliceru said that these investments are not related to electricity production but to water supply and flood protection. “These investments should be completed, otherwise they will significantly reduce the value of the company.”
He added that Hidroelectrica plans investments of more than a billion euros in the next five years. Around EUR 300,000 is intended for retrofit, the same amount for the modernization or upgrades, and EUR 250,000 for the completion of investments in new plants.
Last year, Hidroelectrica recorded a gross profit of EUR 330 million and EUR 754 million in revenues, according to preliminary data. A total of 17.4 TWh has been produced.
At an extraordinary general meeting held on February 7, Hidroelectrica shareholders extended the validity of the letter of commitments with a consortium of Morgan Stanley – Raiffeisen for listing on the power exchange to August 7, 2017.
In 2013, the Romanian Government passed a decision on listing the company on the Bucharest Power Exchange, by launching the capital increase and the initial public offer for the sale of package of shares representing 15% of the existing capital before the increase.
The State holds 80% stake in Hidroelectrica, while the owner of remaining 20% is the Proprietatea Fund.