Romanian energy producer Hidroelectrica’s interim manager stresses need for diversification, hybridization and storage

Hidroelectrica, the largest energy producer in Romania, must focus on diversifying its portfolio of energy production sources and energy storage batteries, said the company’s interim general manager, Bogdan Badea, as reported by Economica.net.

Badea, who also served as Hidroelectrica’s CEO in the past, replaced Károly Borbély, who stepped down on September 19 in response to the European Commission’s objections to the selection procedures that brought him to the top of the company.

Hidroelectrica, which previously announced various diversification plans, saw its position as the largest company by capitalisation at Bucharest Exchange at risk after OMV Petrom gained ground, pushed up by investment projects (and generous dividends).

The drivers that kept in place Hidroelectrica’s market value, as pointed out by Radu Craciun (BCR Pensii) are the company’s long-term strategy (particularly in the context of the climate change’s impact on the hydrology of Romania) and the company’s focus on profit versus social protectio,n suspected by investors as being promoted by the state as the main shareholder.

“For the resumption of the increase in Hidroelectrica’s share price, the quality and independence of governance will be essential, which should be strictly oriented towards financial and operational performance, starting from a long-term vision,” Craciun commented on the company’s strategy and validation.

“Hidroelectrica must focus on diversification, hybridisation, and storage. This is the future of the company in terms of the business model. We want to remain one of the most efficient players in both the supply and production markets. We have investments of over RON 3 billion, both in the area of ​​diversification and adding new capacities to Hidroelectrica’s portfolio, as well as in what means re-technologies, modernisations, and efficiency improvements of current capacities,” said Bogdan Badea in a post on LinkedIn shortly after his re-appointment as the company’s CEO.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)