Its gross profit dropped just 1.3% in the same period, according to a report by investment fund Fondul Proprietatea, which owns 20% in Hidroelectrica.
“The much higher effective tax rate over the first nine months of 2019 was mainly generated by the additional profit tax obligation the company incurred due to the fact that it utilized RON1.57 billion of previously untaxed realized revaluation reserves to cover the value adjustments of the historical complex investments,” Fondul Proprietatea said in its report.
Hidroelectrica delivered 11.99 Twh of electricity from its own production in the first nine months, lower compared with 13.81 TWh in the same period in 2018, while total electricity sales reached 12.91 TWh, down from 14.33 Twh in the same period last year.
Fondul Proprietatea Valued its stake in Hidroelectrica at RON4.14 billion at the end of September, which places the company value at RON21 billion.
Hidroelectrica has summoned a shareholders meeting for December 12 to approve the acquisition of legal services in view of an initial public offering.
The company will also be seeking consultancy services in view of acquiring CEZ and Enel’s Romanian assets.