“In the short run, there are no other energy companies ready for listing. The energy holdings (Oltenia and Hunedoara – e.n.) have undergone a defective vertical integration. Profitable and non-profitable units have been put together, adding politics on top, the social need to create these companies,” Dumitrascu said Tuesday at the ZF Power Summit conference.
Dumitrascu is currently special administrator of Hidroelectrica, which is insolvency.
He added Hidroelectrica could make strategic acquisitions before or after its IPO, the date of which has yet to be set.
“We’re trying to prepare strategic acquisitions for Hidroelectrica, before or after the IPO. I hope the state raises the stake to 20-25%,” said Dumitrascu, adding the company targets acquisitions in the renewable energy sector and currently rules out any move in the thermal power sector.
Romania plans to offer 15% of Hidroelectrica in an IPO, after an initial plan of offering 10%.
Hidroelectrica is owned by the Romanian state, through the Ministry of Energy. 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.
Energy Minister Andrei Gerea said Monday at the ZF Power Summit the state is trying to save energy holdings Oltenia and Hunedoara from bankruptcy. He added CE Hunedoara is noncompetitive and cannot handle the current market economy requirements.
The Romanian government has not reached an agreement with the IMF and European Commission, which called for a price increase for natural gas delivered to household consumers and thermal power plants and massive restructuring of the two energy holdings.
CE Oltenia produces 95% of Romania’s coal and can cover up to 30% of the country’s electricity consumption. The company has nearly 19,000 employees and there are plans to lay off approximately 3,000 people as of March.
CE Hunedoara has nearly 6,500 employees working in for coal mines and two coal-fired power plants that covered around 7% of the country’s electricity consumption in 2013.