Hidroelectrica aims for 1 billion lei profit in 2014

Remus Borza, Hidroelectrica’s judiciary administrator, forecasts profit of over 1 billion lei in 2014, after reporting gross profit of nearly 720 million lei at eight months.

”The production of at least 17 TWh which will be recorded by the end of the year, the implementation of effective strategies for selling the whole amount of the energy we produce, the opening of trading offices in Hungary and Serbia, the consistent effort for reviewing the bank loans portfolio are elements which will generate a record-profit of over 1 billion euro in 2014”, said Borza as per a press release.

Although in insolvency again, the state-owned company continued the positive financial evolution, increasing by 12 percent the gross profit during the first eight months as compared to the same period last year. The improved financial results were triggered by higher sales volume of energy, as well as the cut in operational expenses which offset the negative impact of the tax on special constructions which cost Hidroelectrica 150 million lei. Apart from this tax, the hydropower energy producer pays yearly almost 400 million lei for the used water.

”The increasing amount of energy produced and delivered, higher by 14.5 percent compared to the first eight months of last year, has supported the growth in operating revenues, even amid adverse effects generated by legislation and market conditions”, is explained in the press release in question. So, the new orders from ANRE for supplmenting the annual amount of energy delivered on the regulated market where the sell price dropped from 125 lei/MWh to 115 lei/MWh and the decrease by 18 percent of the average price for energy traded on the centralized market of bilateral contracts affected the company’s financial results.

Hidroelectrica produced and delivered 12.3 TWh in the analyzed period, which accounts for 88.5 percent of the estimated production for the full year, thus expecting a production with at least 3 TWh higher than the budgeted one (13.9 TWh).