Key figures in Hidroelectrica’s revenue and expenditure budget for 2018

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The energy producer Hidroelectrica proposes to shareholders for the May 4th General Assembly a “realistic and prudent” budget, with a 3.5% reduction in revenues compared to 2017 and a less than one billion lei gross profit. In 2017, Hidroelectrica had the best profit in history, and for the first quarter of this year announced a gross profit of 500 million lei. In 2017, Hidroelectrica has also budgeted a lower profit as compared to the previous year (-19%).

3.19 billion lei revenues (-3.5%)

Hidroelectrica estimates for this year total revenues of 3.19 billion lei, 3.5% lower than the preliminated revenues in 2017. The total expenditures are budgeted at 2.26 billion lei, an almost 32% increase compared to last year. The main reasons for this increase are the provisions for abandoning historical investments with complex functions for preparing the IPO. Higher hydraulicity in 2018 comes with an increase in water costs, explains the management of the company. The water flow of the Danube in January 2018 was almost three times higher than in 2017, at over 19 million cubic meters, which meant a cost of 21.3 million lei. “The Danube hydraulicity in 2017 was deficient,” explains the company documents, “hence the lower costs”, but in 2018 the level will be around 95% of the multiannual average.

Wage bill increases 43%

The staff costs will amount to almost 380 million lei, increasing by about 80 million from 2017. The increase in wage costs (up to 363 million lei) is based on the transfer of contributions from the employer to the employee, since 2018, as well as on the increase in salaries following the negotiation of a new collective labor contract for a two years period.

In addition, the number of employees will increase by 214 (6.5%) to around 3,600.

490 million lei for investments

Hidroelectrica prepares investments of 490.58 million lei this year, of which the largest part is for development, 224.82 million lei, and another 187.21 million lei for refurbishment.

As regards this year’s development and refurbishment program, it focuses on works for the commissioning of Bretea, Răstolniţa, Dumitra, Bumbeşti, Nehoiaşu II and Racoviţa hydropower plants, between 2018-2020.

Some funds will also go towards the modernization of CHE Stejaru and the modernization of the hydroelectric equipment at the Bereşti, Călimăneşti and Slatina power stations, as well as for starting the contracting of the works for the refurbishment of the Vidraru, Mărişelu and Râul Mare Retezat power plants.

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