Hidroelectrica’s net profit reached 6.3 billion RON, up 42 percent in 2023

Hidroelectrica announced its financial results for 2023, with a net profit growth of 42 percent, from 4.4 billion RON to 6.3 billion RON.

In 2023, revenues increased by 30 percent comparated to year 2022, and the company posted a net margin of 52 percent, up 10 percent compared to 2022.

“Hidroelectrica Group registers increasing operational and financial results for the year ended 31 December 2023, compared to year 2022, with improvements in the Group’s operating margin and net margin by 6 percent and 10 percent, respectively, mainly due to the high, above average hydraulics and the execution of the strategy supply portfolio,” a release shows.

Generation Energy Sold (Net)

The energy produced and sold (net) increased by 30 percent (17,639 GWh) in the year ended on 31 December 2023 from 13,544 GWh in 2022. This increase was mainly due to the improvement of hydrological conditions in 2023 compared to 2022, the quantity of energy produced in 2023 being above the multiannual average.

Wholesale Revenues

Considering the surplus production of 30 percent compared to the same period of the previous year, combined with the new operating conditions of the wholesale market (implementation starting from 1 January 2023 of MACEE), as well as with the variation of the SPOT price in 2023 compared to 2022 (60 percent decrease), the revenue related to these transactions registered a 14 percent increase in 2023 compared to 2022.

Supply Revenues related to active energy

The revenues from the electricity supply activity increased by 132 percent, to RON 3,494 million revenues in the year ended 31 December 2023, from RON 1,505 million revenues in 2022. This evolution of revenues is due to both the increase in the portfolio of clients and the increase in average selling price.

Transferred costs (pass trough)

The transfer costs related to the supply of electricity increased by 126 percent, to RON 1,454 million in the year ended 31 December 2023, from RON 644 million in 2022. The increase in these costs is directly proportional to the increase in the client portfolio to which the increase in regulated tariffs is added.

Balancing Revenues

Revenues from Balancing decreased by 61 percent, from RON 567 million in the year ended 31 December 2023, from RON 1,447 million in 2022. The decrease is caused by the decrease in the amount of energy related to the Balancing Market from 574 GWh to 433 GWh, as well as by the decrease in the price on the Balancing Market from 2,521 RON / MWh to 1,310 RON / MWh for the year ended 31 December 2023.