The listing on the Bucharest Stock Exchange (BVB) of Hidroelectrica, the largest electricity producer in Romania, through the partial or full sale of the minority holding of 20% of the capital of Fondului Proprietatea, is expected in July, the company announced.
″The Fund (Property - n.r.) received the consent of the shareholders to dispose of its entire participation of up to 19.94%, of the total number of shares issued by the Company, within the offer. The number of shares to be sold in the public offering will be determined later. The Company will not carry out a capital increase in the context of the Offer and will not benefit in any way from the funds obtained as a result of the Offer. The offer will consist of a public offer addressed to retail and institutional investors from Romania, as well as eligible international institutional investors", Hidroelectrica said.
Citigroup Global Markets Europe AG, Erste Group Bank AG, Jefferies GMBH and Morgan Stanley Europe SE are acting as Joint Global Coordinators in connection with the Offer. Banca Comercială Română SA, Barclays Bank Ireland PLC, BofA Securities Europe SA, UBS Europe SE, UniCredit Bank AG and Wood & Company Financial Services act as Joint Holders of the Subscription Register. Auerbach Grayson, BRD – Groupe Société Générale, S.S.I.F. BT Capital Partners S.A. and S.S.I.F. Swiss Capital S.A. are Principal Joint Managers. Rothschild & Co Equity Market Solutions Limited is the Financial Adviser to the Fund and STJ Advisors is the Financial Adviser to the Company in connection with the Initial Public Offering. ″Hidroelectrica has a long history of significant growth and profit generation for shareholders, being the main electricity producer in Romania, with a production portfolio 100% from renewable sources. We are well positioned to continue the growth trend with a clear strategy focused on operational efficiency, business diversification and expansion and ensuring return on capital, all supported by a favorable long-term sectoral and macroeconomic environment. The proposed Initial Public Offer represents a natural and exciting step in our evolution, because the listing of Hidroelectrica on the Bucharest Stock Exchange will help us diversify our shareholder base and develop our international profile", said the executive director of Hidroelectrica, Bogdan Badea.
Hidroelectrica is the largest energy producer in Romania, according to the company's self-presentation. The group owns and operates 182 hydropower plants, five pumping stations and a wind farm that are strategically located in eight branches organized geographically on the territory of Romania. The total installed production capacity of the Company's hydropower assets is divided into storage hydropower plants, run-of-river hydropower plants and pumping stations. The company owns a 100% renewable generation portfolio, with an installed hydroelectric generation capacity of 6.3 GW and an installed onshore wind capacity of 108 MW in the Crucea wind farm.
Between 2018 and 2022, the Company had a market share of approximately 29% considering the total energy generated and delivered in the system (according to the annual reports of the National Energy Regulatory Authority). Hidroelectrica is one of the largest hydropower producers in Europe, with a volume of electricity generated from hydroelectric sources of 13.6 TWh in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 (all of which represent the gross amount of production). Production in 2022 reflects less favorable hydrological conditions due to severe drought.
At the same time, Hidroelectrica supplies electricity on the wholesale and retail electricity markets. The Company's market share of electricity supplied to retail customers increased from 1.3% in 2020 to approximately 8% in December 2022, and the number of customers increased from 2,465 in 2020 to over 482,000 in 2022. In 2022, the Company supplied approximately 3.7 TWh of electricity to final customers, according to ANRE. In the years ended on December 31, 2022, 2021 and 2020, the Company generated consolidated revenues in the amount of 9,452.0 million RON, 6,489.3 million RON and 3,841.4 million RON, respectively. In the same period, the Company reported annual (net) profits of RON 4,464.0 million, RON 3,116.2 million and RON 1,558.0 million, respectively.
Hidroelectrica aims for a dividend payout policy of at least 90%, while balancing the capital needs of the business for future growth and staying within the debt target. The company has a long history of dividend distribution, having in the past achieved a dividend distribution rate of over 100%, including special dividends. For the year 2022, the total value of dividends is 4.349 billion RON, of which 3.914 billion RON are ordinary dividends (which will be paid on June 16, 2023) and 435 million RON are special dividends (which will be paid on September 29, 2023). The dividend distribution rate is 99%, which will be paid to the Ministry of Energy and the Proprietatea Fund. In the first quarter of 2023, the Company obtained consolidated revenues of 3,272.1 million RON, which were generated by the increase in the total amount of energy sold (4,838 GWh in the first quarter of 2023) both in the production and supply segments This led to a total value of adjusted EBITDA of 2,184.2 million RON and a net profit of 1,723.4 million RON in the first quarter of 2023, compared to a total value of adjusted EBITDA of 1,702.7 million RON and a reported net profit of 1,287.9 million RON in the first quarter of 2022.