In 2025, Romania’s Hidroelectrica concluded the year with a net profit of approximately 664 million euros, representing a 20% decrease from the previous year. This decline, however, was mitigated by exceeding revised budget projections by around 10%, indicating effective financial management amidst challenging conditions.
The primary factor contributing to the profit drop was unfavorable hydrological conditions, which significantly impacted hydroelectric generation capabilities. The company reported a 15% decline in net energy production and sales, totaling 13,864 GWh. The year commenced with severe drought conditions that reduced average Danube flows to just 4,257 cubic meters per second in the first quarter, about 40% lower than in 2024. Nevertheless, production saw improvements in the latter part of the year, particularly in Q3 and Q4, as water conditions improved and electricity purchases increased.
On the revenue front, Hidroelectrica’s wholesale segment benefited from a 16% increase in average selling prices compared to 2024. The strategic shift towards forward market trading, following the removal of the regulated MACEE mechanism at the beginning of 2025, allowed the company to secure higher prices that partially offset reduced output. However, total wholesale revenues still experienced a decline of 22%, although this was an improvement from a staggering 53% drop recorded in Q1.
The company’s electricity supply segment performed robustly, with revenues surging by 48% to approximately 690 million euros. This growth was driven by a significant 30% increase in volumes sold to end customers alongside a 14% rise in average supply prices.
<pOther income streams showed mixed results. Revenues from the balancing market fell sharply by 69%, totaling 54 million euros due to a substantial 64% decline in traded volumes. National balancing volumes decreased significantly from 1,493 GWh in 2024 to just 797 GWh in 2025. Additionally, revenues from customer contracts saw a reduction of 37%, amounting to 29 million euros.
<pOn the cost side, expenses related to processed water decreased by 14%, reaching around 90 million euros due to lower production levels. Conversely, personnel expenses increased by 15%, totaling 205 million euros as a result of wage increases and a growth of headcount by 3%, partly due to the acquisition of UCM Resita. Meanwhile, transmission and distribution costs rose by 33%, reaching 329 million euros due to higher delivered volumes and regulatory price adjustments. Notably, electricity procurement costs surged over threefold to more than 180 million euros as the company sought to support its supply operations amid weaker hydro output.
<pCapital expenditure saw an increase of 32%, amounting to 157 million euros. Investments directed towards development projects more than doubled to reach 42 million euros, while spending on modernization activities rose by 59%, totaling around 86 million euros.
<pDespite facing challenges related to lower hydro production levels, Hidroelectrica managed to safeguard its margins through strategic pricing and portfolio optimization while continuing its commitment to scaling investments in modernization and diversification efforts.
