Hidroelectrica (BVB: H2O), the largest producer of electricity in Romania, derived revenues of almost RON 7 billion (EUR 1.4 billion) in the first half of the year, up by 42% y/y. Meanwhile, its net profit rose by 46% y/y to RON 3.95 billion (EUR 0.8 billion), according to the report published on August 16.

The company's market capitalization on August 16, before the release, was nearly RON 50 billion (just over EUR 10 billion).

"Beyond the much better hydraulics, I see this performance as a result of operating efficiency, keeping operating margin and net margin at a high level," the company's CEO Bogdan Badea explained.

The energy produced and sold (net) increased by 45% y/y (to 10.625 TWh) in the six-month period ending on June 30, 2023, from 7.347 TWh in the previous similar period. This increase was mainly due to the high hydraulics recorded in the first semester of 2023 but also due to the base effect as a result of the drought that characterized the first semester of 2022.

For the first six months of the year, Hidroelectrica's operating margin was 65%, in line with the same period last year, while the net margin was 57%, up 3% compared to the first half of the year 2022.

iulian@romania-insider.com

(Photo source: Facebook/Hidroelectrica)