Profit of Romania's Hidroelectrica plunges by one-third on lower energy output
<p>Romania's leading energy producer, Hidroelectrica (BVB: H2O), announced its output decreased by 22% y/y to 11.35TWh in January-September, citing both market conditions (a change in the regulations that resulted in volatile prices and volumes traded) and adverse hydrological conditions.&nbsp;</p>

<p>The revenues contracted by 25% y/y to RON 7.2 billion (EUR 1.44 billion), roughly in line with the total amount of energy sold (11.72GWh, -24% y/y).&nbsp;</p>

<p>Out of the total energy sold, 6.96TWh was sold on the wholesale market at an average price of RON 467 per MWh (-6% y/y) and 4.00TWh directly to end users at an average price of RON 432 (-22% y/y). Nearly 0.4TWh was supplied as balancing services (+64% y/y), and the revenues thus generated RON 664 million (+98% y/y).</p>

<p>EBITDA plunged slightly faster than revenues, by 29% y/y (to RON 4.67 billion), and consequently, the EBITDA margin deteriorated to 58% from 63% in the same period last year.</p>

<p>The operational decline was anticipated by the company's management, and the RON 3.5 billion (EUR 700 million, -32% y/y) net profit was actually slightly above the budget.&nbsp;</p>

<p>Still, the company's shares lost 0.66% on the day the financial report was released.&nbsp;</p>

<p>With a below-market annual rise of 1.8% y/y, the company's capitalization reached RON 54.5 billion (EUR 11 billion) currently. The dividend distributed this year out of last year's robust profit added a supplementary 11.5% yield to the investors' portfolios.&nbsp;</p>

<p>The company is controlled by the state (80%).</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Inquam Photos/Octav Ganea)</em></p>