Romanian electricity producer Hidroelectrica announced a net profit of 824 million euros for 2024, marking a 35% decline compared to the previous year. The company’s revenues also fell by 25% to 1.83 billion euros, driven by reduced electricity production, lower sales, and a drop in electricity prices.
In a statement, Hidroelectrica attributed the decline in performance to unfavorable hydrological conditions, particularly between April and September 2024, when the average flow of the Danube River decreased by approximately 18% compared to the same period in 2023. These conditions led to a 22% reduction in electricity production and sales (net production) for the year.
The company’s EBITDA dropped by 31% to 1.1 billion euros, while its operating margin fell by 15 percentage points to 59%. Despite the challenges, the 2024 results were broadly in line with the company’s approved budget, though slightly below initial projections due to the adverse weather conditions.
Revenues from the wholesale electricity market also suffered, declining by 36% to 762 million euros. However, Hidroelectrica managed to reduce its bank loan balance by 31% to 41.8 million euros by the end of 2024, down from 60.3 million euros the previous year, following repayments totaling 18.5 million euros.
Hidroelectrica, which went public in July 2023, is currently valued at approximately 10.97 billion euros by investors. The Romanian state, through the Ministry of Energy, holds an 80% stake in the company. Since the beginning of the year, the company’s shares have experienced a slight decline of 0.33%.
The 2024 results highlight the impact of external factors, such as hydrological variability, on Hidroelectrica’s operations. Despite these challenges, the company remains a key player in Romania’s energy sector, with its performance closely tied to natural conditions and market dynamics.
