Output decreased sharply because of the drought, while the price of industrial water has increased, impacting costs, Hidroelectrica’s general manager Dragos Zachia said.
Speaking at a seminar organized by Ziarul Financiar and the Bucharest Stock Exchange, Zachia said Hidroelectrica reported a 7.1% decline in revenue to RON3.17 billion in 2011.
Expenditures, on the other hand, rose 4.2% on the year to RON3.15 billion, he added.
Operating profit fell to RON113 million in 2011, from RON502.7 million in the previous year.
Hidroelectrica posted total sales of RON2.9 billion, down from RON3.27 billion in 2010.
Romanian Economy Ministry owns 80.05% in Hidroelectrica, while investment fund Fondul Proprietatea (FP.RO) has 19.94% of its shares. The ministry plans to launch a public offering of 10% in the company by the end of October. (EUR1=RON4.3557)