Romania’s leading hydropower producer, Hidroelectrica, concluded the year 2025 with a net profit of approximately 664 million euros, reflecting a 20% decline from the previous year. This downturn is attributed to challenging hydrological conditions that significantly impacted hydroelectric generation. However, the company’s performance still surpassed its revised budget projections by about 10%, indicating some resilience in its operational strategy.
The reduction in profit was primarily driven by a notable decrease in net energy production and sales, which fell by around 15% to a total of 13,864 GWh. The year commenced under severe drought conditions, with average Danube river flows recorded at just 4,257 cubic meters per second during the first quarter—approximately 40% lower than in the same period in 2024. While hydro generation improved later in the year, particularly in the third and fourth quarters due to better water conditions and increased electricity purchases, the initial deficit had a lasting impact on overall output.
Despite these challenges, the wholesale segment of Hidroelectrica experienced a boost from a 16% rise in average selling prices compared to 2024. The company’s strategic pivot towards forward market trading following the deregulation of the MACEE mechanism at the beginning of 2025 allowed it to secure higher prices, which helped mitigate some of the losses from reduced production. Nonetheless, total wholesale revenues still saw a decline of 22% year-on-year, although this marked an improvement from a staggering 53% drop observed in Q1.
On a more positive note, Hidroelectrica’s electricity supply business demonstrated robust growth, with revenues increasing by 48% to around 690 million euros. This surge was fueled by a 30% rise in volumes sold to end customers and a corresponding 14% increase in average supply prices.
Other revenue streams presented mixed results. Balancing market revenues plummeted by 69%, reaching only 54 million euros as traded volumes fell by 64%. National balancing volumes saw a significant decrease from 1,493 GWh in 2024 to just 797 GWh in 2025. Additionally, revenues from customer contracts declined by 37% to 29 million euros.
Cost management also played a critical role in shaping Hidroelectrica’s financial landscape. Expenses for processed water decreased by 14% to approximately 90 million euros due to lower production levels. Conversely, personnel expenses rose by 15% to reach 205 million euros, driven by wage increases and a slight headcount growth of 3%, partly related to the acquisition of UCM Resita. Transmission and distribution costs surged by 33% to 329 million euros as a result of increased delivered volumes and regulatory price adjustments. Furthermore, electricity procurement costs skyrocketed more than threefold to over 180 million euros, necessitated by supply operations amid weaker hydro output.
Capital expenditure saw a significant uptick of 32%, totaling 157 million euros for the year. Investments aimed at development projects more than doubled to reach 42 million euros, while spending on modernization initiatives rose by an impressive 59%, amounting to approximately 86 million euros.
In summary, despite facing substantial challenges due to lower hydro production levels, Hidroelectrica managed to protect its profit margins through strategic pricing mechanisms and portfolio optimization strategies. The company remains committed to enhancing its operational capabilities and diversifying its investments moving forward.
