State-controlled Hidroelectrica, the largest Romanian electricity producer, posted a record RON 1.55 billion (EUR 330 million) net profit in 2018, up 13.9% compared to the previous year.

Its turnover increased by 30.7% to RON 4.25 billion (EUR 900 million), according to unaudited data published in the annual report of Fondul Proprietatea (FP), a minority shareholder in the company, quoted by local Ziarul Financiar. The positive results came as the company sold almost 23% more energy in 2018 compared to 2017, according to the same source.

Fondul Proprietatea had its 20% stake in Hidroelectrica valued at RON 3.9 billion (EUR 830 million) at the end of December 2018. However, the fund revised downward the value of this stake by some 10% because of new regulations enacted following the Government's emergency ordinance (OUG) 114/2018.

Under the methodology issued by the market regulator ANRE in line with the OUG 114/2018, Hidroelectrica (as well as Nuclearelectrica) can be compelled to sell up to 65% of its production at production cost plus a 5% profit margin. The two companies have the lowest production costs and will deliver electricity at regulated prices to residential users, while the other producers will be required to contribute according to their production costs.

editor@romania-insider.com

(Photo source: Facebook/Hidroelectrica)