Romania: Lower profit in 2020 estimated for Hidroelectrica, SEE Energy News
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. Romanian electricity producer Hidroelectrica 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. On the other hand, it has budgeted a huge amount for investments, especially for acquisitions, as it is involved in the purchase of CEZ assets.
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.
The company’s expenses will be also down by some 50 million euros, up to 505 million euros, mainly due to the provision of provisions during 2019. The expenses for maintenance and repairs are budgeted at 37 million euros, 17 million more than in 2019.
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).