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
RECOMMENDED FROM THE HOME PAGE
Romania cuts budget deficit to 6.40% in first 11 months
Finance

Romania cuts budget deficit to 6.40% in first 11 months

Romania's consolidated general budget recorded a deficit of  RON 121.77 billion (€23.90 billion), equivalent to 6.40% of GDP, in the first eleven months of 2025, down 0.74 percentage points from 7.15% in the same period of 2024.

Energy

PPC Romania to build 100 MW gas plant in Reșița

A company from the PPC Romania group will construct a natural gas power plant with a capacity of approximately 100 MW on Valea Terovei, on the site of the former UCC - Uzina Cocso Chimică platform in Reșița.

READ MORE
Business Forum  |  29 December, 2025 at 7:55 PM
Business Forum  |  29 December, 2025 at 5:39 PM