Hidroelectrica's profit plummets in H1 2025 amid drought and increased costs

Business Forum
State-owned hydroelectricity producer Hidroelectrica said its net profit decreased by 41% to RON 1.58 billion (€319.5 million) in H1 2025 versus the same period of 2024, over unfavourable hydrological conditions and a strategic shift towards purchasing electricity from the market to compensate for reduced hydropower generation.

Revenue for the period was RON 4.315 billion (€869.5 million), a 16% decrease compared to the same period last year. This fall was a direct result of a 27% decrease in net electricity production, as severe drought conditions, particularly in Q1 2025, significantly impacted the Danube's flow. 

The average flow of the Danube in Q1 2025 was 4,257 cbm per second, approximately 40% lower than in Q1 2024.

To maintain its supply performance, Hidroelectrica increased its external electricity acquisitions by 62%. This increased reliance on the wholesale electricity market, coupled with a growing share of the supply segment, weighed on the company's margins. The operating margin dropped by 31% to 41%, while the net margin fell by 30% to 37%.

Despite these challenges, the company's Q2 2025 performance showed a recovery, driven by electricity purchases and a partial rebound in production. 

Hidroelectrica said its prudent commercial policy and careful management of its production-purchase mix helped it achieve a gross profit that was slightly above the budget forecast by 1%.

RECOMMENDED
Hidroelectrica posts 122% profit surge in Q1 2026
Energy

Hidroelectrica posts 122% profit surge in Q1 2026

Romanian energy giant Hidroelectrica recorded a net profit of €263 million in the first quarter of 2026, marking a 122% increase compared to same period last year, according to a report submitted to the BVB.

Hidroelectricas investments reach new high in 2025
Energy

Hidroelectrica's investments reach new high in 2025

State-owned power producer Hidroelectrica achieved total investments of RON 781 million (€157 million) in 2025, up 32% compared to 2024, representing the company's best investment volume in years.

PPC Group sees 25% profit hike in 2025
Energy

PPC Group sees 25% profit hike in 2025

Energy group PPC achieved its 2025 targets with adjusted EBITDA reaching €2 billion and adjusted net profit of €450 million, up 25% year-on-year.

Hidroelectrica reports 20% profit drop in 2025
Energy

Hidroelectrica reports 20% profit drop in 2025

State-owned power producer Hidroelectrica Group recorded a 20% fall in net profit during 2025 versus 2024 as the poor water levels significantly impacted hydropower generation and consequently the total volume of energy available for sale.

RECOMMENDED FROM THE HOME PAGE
Industry

Sphera Franchise Group posts sales growth in Q1 2026

Sphera Franchise Group, Romania's largest food service group, reported consolidated sales of €75.6 million in Q1 2026, up 4.2% compared to the same period last year. Growth was driven by the return to positive performance of KFC Romania and the strong evolution of Taco Bell.

Finance

BT posts 30% profit jump in Q1 2026

Banca Transilvania (BT) said its consolidated net profit reached RON 1.14 billion lei (€228 million) in Q1, representing a 30.1% increase compared to the same period last year. Total assets for the group expanded to RON 227 billion lei (€45.4 billion) as the institution neared the milestone of five million active customers.

Real estate

Arcadis signs major lease at Business Garden Bucharest

Vastint Romania has announced a new leasing contract with Arcadis Romania, which will occupy 1,183 sqm in building A of Business Garden Bucharest. The global design, engineering and consultancy company joins a growing community of international tenants at the development.

READ MORE
Business Forum  |  22 May, 2026 at 6:00 PM
Business Forum  |  22 May, 2026 at 1:20 PM