Romanian electricity producer Hidroelectrica recorded a 32% year-on-year decrease in its net profit, which amounted to €710 million for the first nine months of 2024.
The company’s revenues also saw a decline of 25%, reaching €1.46 billion during the same period, primarily driven by reduced electricity output and lower prices. Hidroelectrica’s production was impacted by unfavorable weather conditions, while government-imposed regulations led to significant price fluctuations and volatile trading volumes.
In early 2023, the Romanian Government introduced the Centralized Electricity Purchasing Mechanism (MACEE), a temporary policy set to run until March 2025. Under MACEE, electricity producers, including Hidroelectrica, were required to sell 80% of their estimated annual available electricity at a fixed price of €90/MWh to the market operator, OPCOM. From 1 April 2024, the MACEE price was reduced to €80/MWh for new contracts, and the mechanism became voluntary, allowing pre-sales on bilateral markets.
As a result of these challenges, Hidroelectrica’s operating profit dropped by 33% to €806.5 million, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 29% to €951.3 million compared to the same period in 2023.
Net electricity production for the first nine months of 2024 decreased by 22% to 11.05 TWh, with hydropower output contributing 10.84 TWh. Wind energy production also dropped by 12% year-on-year to 214 GWh. Total electricity sales declined by 24% to 11.72 TWh during the period.
Despite these setbacks, Hidroelectrica remained the largest electricity supplier to end consumers as of July 2024, with a market share of 13.3%.
On a positive note, the company’s total investments rose by 140% to €63 million in the first nine months of 2024. Capital expenditures for completed development projects totaled €17.4 million, reflecting an 89% increase from the previous year. Of this, €15.5 million was allocated to ongoing investments, while €1.4 million was earmarked for new projects.
Despite the challenges posed by the regulatory environment and weather conditions, Hidroelectrica continues to focus on strengthening its market position through substantial investments in infrastructure and development projects.
