Hidroelectrica budgeted for this year a declining profit, as a result of the decrease in revenues, mainly due to the obligations to sell on the regulated market. However, it has budgeted a huge amount for investments, especially for acquisitions, as it is involved in the purchase of CEZ assets, according to e-nergia.ro.

The total revenues of the company will be of 3.9 billion lei, compared to 4.3 billion in 2019, according to the draft budget.

Hidroelectrica shows that the decrease is mainly determined by the obligation of ANRE to sell 3.15 TWh of electricity (total production is estimated at 14.7 TWh) at the regulated price of 102.5 lei / MWh. Due to this obligation, Hidroelectrica has a minus in revenues of 400 million lei.

On the other hand, the company’s expenses are also down by 243 million lei, up to 2.45 billion lei, a situation due in particular to the provision of provisions during 2019, as the company shows. In this chapter, the expenses for maintenance and repairs are of 179 million lei, increasing by 82 million lei as compared to 2019.

However, the investment budget is huge, of 4.22 billion lei, and most of them is represented by the chapter “acquisition of participations”, where an amount of 3.75 billion lei is allotted. Hidroelectrica is involved in the process of acquiring CEZ assets in Romania (distribution in Oltenia, supply company and wind farm in Dobrogea), a process that is now in progress.