Romania: Lower profit at Hidroelectrica in first half of 2020, SEE Energy News
In the first half of 2020, Hidroelectrica recorded a net profit in the amount of 166.3 million euros. This is by 11 % less compared to the same period last year for the largest Romanian electricity producer.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 26 % in the first six months of the year, to 258 million euros, while operating revenues were lower by 23 %, reaching 376 million euros.
The statement from Hidroelectrica said that operating revenues decreased in the first half of the year due to poor hydrological conditions and lower average selling price due to the effects of COVID-19, as well as the fact that Hidroelectrica was forced to sell even more electricity on the regulated market than in the first half of 2019 and at an even lower price. However, this also led to a de-crease in operating expenses.
The company produced a total of 7.136 TWh of electricity in the first half of 2020, 23 % less than in the same period in 2019.
On the other hand, Hidroelectrica increased investments by 32 % in the reviewed period to 11 million euros. The largest increase, of 81 % year-on-year, was in the area of investments in refurbishments and modernizations, where 4.2 million euros were allocated.