Hidroelectrica's 1 bn lei profit target, on track: 943 mln lei at ten months

Hidroelectrica has recorded a gross profit of 943 million lei in the first ten months of 2014, a record level, after a 23.6 percent growth year-on-year, triggered by both increasing energy sales and strict control on prodction costs imposed by the reorganization plan issued by the judiciary administrator, the company announced. October 2014 accounts for the major share of the profit – about 13 percent, the 124 million lei profit corresponding to the previous month reaching an all time peak.

The company's turnover in the period between January and October 31, 2014 amounted to 2.78 billion lei, an advance by 11.2 percent compared to the similar period last year, the annual turnover forecasted coming to 3.2 billion lei. Hence, the hydropower energy producer's over 1 billion lei profit targeted this year is on track. It would be the highest profit ever recorded, 22 percent above the 2013 figures and three times higher than the profit registered in 2010 when Hidroelectrica produced the largest amount of energy in history, 20 Twh.

In the analyzed time frame, the company produced and delievered 15.5 TWh, with an estimated production for the full year of at least 17.5 TWh.

Last year, when Hidroelectrica carried out the reorganization, posted a net profit of 719 million lei following a loss of 508 million euro in the previous year. Since February 2014, the hydroelectric energy producer is insolvent again after the decision of the Bucharest Court of Appeal that admitted the appeals of some energy traders against the termination of the bilateral contracts through which they had access to underpriced electricity.