Hidroelectrica Group recorded a net profit of 3.303 billion lei in 2025, 20% below that of 2024, but 10% above the revised budget, according to preliminary consolidated financial results submitted to the Bucharest Stock Exchange on Thursday.
“In 2025, Hidroelectrica Group recorded operational and financial results approximately 10% above the levels estimated in the 2025 Budget, although compared to 2024 these are 20% lower, due to less favorable annual hydrological conditions, which significantly influenced hydropower production and, implicitly, the total volume of energy available for sale,” the report submitted to the BVB states.
During the period January-December 2025, the average selling price on the wholesale segment recorded a significant increase of approximately 16% compared to the same period of the previous year. This increase was mainly due to trading on forward markets, following the elimination of the MACEE regulated mechanism starting with January 1, 2025. Trading on forward markets allowed the company to obtain better prices for the electricity sold, thus contributing to mitigating the impact of low hydrology on wholesale segment revenues.
In the short term, especially compared to the first quarter of 2025, the decrease in the quantities available for sale limited the company’s ability to fully capitalize on the increase in wholesale market revenues.
“However, Hidroelectrica quickly adapted by optimizing the production-trading mix, which had a significant impact on increasing the average selling price, ensuring the protection of the commercial margin in a period of low volumes. This approach compensated for the deficit in Q1, leading to a 22% decrease in revenues related to the wholesale market segment compared to the same period of 2024, compared to 53% in Q1”, the cited source states.
Revenues from the electricity supply activity increased by 48%, to 3.448 billion lei, from 2.329 billion lei in 2024. According to company representatives, this evolution reflects both an increase in the customer base and the efficiency of adjusting the commercial policy in difficult competitive conditions. The increase in revenues was generated by a higher volume of electricity supplied to end consumers (30%), corroborated with an increase in the average price of supply tariffs by 14%, the result of a commercial adaptation to the market context and maintaining competitiveness.
Balancing revenues decreased by 69%, to 267 million lei, from 863 million lei in the previous year, mainly due to the 64% reduction in the volume sold on the Balancing Market in 2025 compared to 2024. The decrease is directly proportional to the evolution of the balancing market in Romania, which quantitatively had a 53% decrease in the first 11 months of 2025 (according to data published by the National Energy Regulatory Authority) from 1,493 GWh in 2024, to 797 GWh in 2025.
Other revenues from customer contracts decreased by 37%, to 146 million lei in 2025, from 231 million lei in 2024.
“The evolution of these revenues is influenced by the behavior of other participants in the electricity market in terms of managing imbalances. The increase in prices recorded on the market for positive imbalances resulted in an increase in positive imbalance revenues at Group level in the first six months of 2025 by 230 million lei compared to the same period of 2024. At the same time, power reduction services recorded in the generation segment decreased by 315 million lei compared to the same period of 2024,” the report explains.
Processed water expenses decreased by 14% to 445 million lei in the year ended December 31, 2025, from 518 million lei in the previous year. This decrease was determined by the decrease in the amount of electricity produced in 2025 compared to 2024, as a result of unfavorable hydrological conditions.
Employee benefit expenses increased by 15% to RON 1.020 billion, from RON 885 million in 2024. This increase mainly reflects the salary increases resulting from negotiations with the employees’ union, applicable starting July 2024 and May 2025, respectively, as well as the 3% increase in the effective number of employees of the Group (increase mainly generated by the acquisition of UCM Reșița in March 2024).
Also, electricity transmission and distribution expenses increased by 33%, to RON 1.635 billion, from RON 1.228 billion in 2024. This increase is determined by the 30% increase in the volume of energy supplied and the successive increases in regulated tariffs during 2025.
Purchased electricity increased by 336% in 2025, to 911 million lei, from 209 million lei in 2024. This evolution is mainly due to the low energy production, the increase in the amount of electricity needed by the supply segment.
The energy produced and sold (net production) recorded a decrease of approximately 15% in 2025 compared to 2024, in the period January-December 2025 this amount being 13,864 GWh. After a start to the year marked by a sharp reduction in production, amid unfavorable hydrological conditions, namely a period of severe hydrological drought, with an average Danube flow in the first quarter of 2025 of only 4,257 m3/s, down by approximately 40% compared to the same period in 2024, the company managed a significant recovery in Q3-Q4, supported in particular by energy purchases and the mitigation of the production decline, respectively an increase in production in the last quarter due to favorable hydrological conditions.
The company’s total investments recorded an increase of 32% last year, from 591 million lei to 781 million lei, reflecting the consistent implementation of the company’s development, modernization and diversification strategy. The evolution was mainly supported by the increase in investments in development projects, which doubled (105%, to 209 million lei), as well as by the intensification of modernization programs (by 59%, to 428 million lei). At the same time, investments in maintenance increased by 36%, to 113 million lei, and those in independent equipment and facilities almost doubled (by 94%, to 31 million lei).