Fondul Proprietatea evaluates Hidroelectrica at three billion Euro

2016-02-07 16:41:13 - From the Print Edition

Fondul Proprietatea (FP) announced in mid-January that it updated in December last year the 19.9 per cent per cent owned equity stakes in Hidroelectrica in its net assets, assessing it up to 105 million Euro (476 million RON), up to a total of about 586 million Euro (2.654 billion RON). Thus, the whole company is quoted at a value of about three billion Euro (13.3 billion RON), up by 22 per cent compared to the previous quotation of the net assets of the fund. Also, in December 2013 and December 2014 the fund positively updated the equity stakes in Hidroelectrica, but the update of December 2015 reported the most significant increase. Hidroelectrica is the largest energy producer in Romania and it is owned by 80 per cent by the Romanian state through the Ministry of Energy. The company is the most profitable in the state portfolio, which is why it earned the title "pearl of the crown". Hidroelectrica ended 2015 with a gross profit of almost 221 million Euro (one billion RON), according to Remus Borza, administrator of the company, quoted by Ziarul Financiar. Hidroelectrica is insolvent since 2012. The latest estimates are that Hidroelectrica will come out of insolvency in May-June, so the listing on the Bucharest Stock Exchange will take place most likely in 2017.