Hidroelectrica reported a net profit of about 119 million euros for the first quarter of 2025, which represents a significant decrease of 56 percent compared to the same period last year.
Although the company exceeded budget forecasts in both operational and financial terms, the results were weaker than those recorded in the first quarter of 2024. Unfavorable hydrological conditions had a major impact, causing net electricity production to drop by 38 percent to 2,654 GWh—the lowest first-quarter output in a decade. Revenues for the quarter were around 360 million euros, a 26 percent decline compared to the same period in 2024. The operating margin fell by 42 percent, while the net margin decreased by 40 percent. This was largely due to a shift in the company’s revenue structure, with a growing share of income coming from the supply segment. Still, Hidroelectrica’s gross profit exceeded initial projections by 26 percent, highlighting effective resource management and resilience amid natural challenges.
The decline in electricity production was mainly caused by a severe hydrological drought that greatly reduced water flow in the Danube River. During the first quarter of 2025, the average flow was about 4,257 cubic meters per second, roughly 40 percent lower than in the same period in 2024. This led to a 61 percent reduction in the volume of electricity available for sale on the wholesale market. Despite a 21 percent increase in the average selling price in the wholesale segment, driven by forward market trading after the removal of the MACEE regulated mechanism in early 2025, overall revenue from this segment dropped by 53 percent compared to the first quarter of 2024. The rise in forward market prices partially offset the revenue losses caused by lower production but was insufficient to fully compensate for the reduced quantities available for sale.
Meanwhile, revenues from the supply segment increased by 5 percent, reaching around 132 million euros in the first quarter of 2025, up from approximately 126 million euros in the same period of 2024. This growth was supported by an increase in customer numbers and adjustments to commercial strategies to remain competitive. However, the positive impact of higher electricity volumes supplied was partially offset by declining sales prices. Market fluctuations, including increased volatility in electricity prices, contributed to the decline in selling prices. Additionally, changes in the fiscal framework—specifically the lowering of the threshold for applying the tax on additional income—helped ease some pressure on supply chain costs.
Furthermore, earlier developments in the wholesale market, characterized by an energy surplus caused by supply and demand imbalances, led to lower transaction prices. This allowed competitors to purchase energy at reduced costs, which in turn lowered resale prices in the retail segment.
