Borza previously said that Hidroelectrica might be listed on the stock exchange by May 2016, even while it is still under insolvency.
Gerea explained that the government definitely rejects the idea of listing the company while still being under insolvency, as the bid would close at a discount compared with the company’s real market value.
On the other hand, Borza said that if it takes too long between exiting insolvency and the company’s listing on the bourse, this would expose Hidroelectrica to the risk of reactivating the bad contracts that brought the company in this situation in the first place.
Hence, the idea of listing Hidroelectrica on the stock exchange as soon as possible proves the huge interest of investors in a very profitable and cash-generating company, which enforces a very generous dividends policy.
The listing will involve the sale of a 15% stake in the company.
Hidroelectrica is 80% owned by the Romanian state, through the Ministry of Energy, while Fondul Proprietatea owns a 20% stake. The company has been insolvent since February 2014, for the second time in less than a year. Hidroelectrica went through insolvency procedures in June 2012 – June 2013.
Romania’s largest power producer entered insolvency in June 2012 after it sold electricity outside the energy exchange at prices below market levels. The company was court-ordered into a second insolvency process in February 2014, less than eight months after completing a one-year reorganization process.
In January-May, Hidroelectrica reported a historical profit worth RON625 million, up by RON150 million compared with the similar period a year before, while production rose by 1.1 TWh to 8.3 TWh, Borza said.
Borza added that Hidroelectrica turned from the most indebted company (EUR1.2 billion debts in 2012) into the most profitable local company.
End-May 2015, Borza said Hidroelectrica will not exit insolvency this year, as initially expected, due to stalled lawsuits.
The company produced 18.4 TWh of electricity in 2014. Last year, Hidroelectrica had a record turnover of RON3.4 billion (EUR765.7 million) last year, 10.3% higher than in 2013, and a profit of RON1.2 billion, its highest yet, up 66.8% from 2013.
(English version by Manuela Panescu)