InterCapital Croatia - IC Daily Market Espresso - Flash News Romania: Hidroelectrica 9M 2019 Results - Nov 20, 2019

In the first nine months of 2019, Hidroelectrica recorded an increase in turnover of 2% YoY and a 22% decrease in net profit.

In the first nine months of 2019, Hidroelectrica delivered 11.99 Twh of electricity from its own production in the first nine months, lower compared with 13.81 TWh in the same period in 2018, while total electricity sales reached 12.91 TWh, down from 14.33 Twh in the same period last year.

According to a report by Fondul Proprietatea, which has a 20% stake in Hidroelectrica, in the first 9M of 2019, Hidroelectirca recorded an increase in turnover of 2% YoY, amounting to RON 3.3bn. Meanwhile the company’s gross profit dropped by 1.3% YoY. Net profit amounted to RON 1.3bn, showing a decrease of 22% YoY. Such a result puts the profit margin at 39.4%.

The report stated that the much higher effective tax rate over the first nine months of 2019 was mainly generated by the additional profit tax obligation the company incurred due to the fact that it utilized RON 1.57bn billion of previously untaxed realized revaluation reserves to cover the value adjustments of the historical complex investments.

It is worth noting that Fondul Proprietatea valued its stake in Hidroelectrica at RON 4.14bn at the end of September, which would put the company value at RON 21bn.

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