State-owned power producer becomes most valuable company in Romania

tarnitaState-owned Hidroelectrica, the largest electricity producer in Romania, has surpassed oil & gas group OMV Petrom as the most valuable company in Romania, according to Romania-Insider.com.

Hidroelectrica was valued at EUR 2.9 billion in the 2016 issue of Top 100 Most Valuable Companies in Romania made by Ziarul Financiar (ZF) in partnership with local investment bank BT Capital Partners, up 15% compared to 2015.

Oil & gas producer OMV Petrom fell to second place, with a market capitalization of EUR 2.84 billion, down 31% compared to the previous year. OMV Petrom’s shares tumbled on the Bucharest Stock Exchange as the fall in international oil prices has strongly impacted the group’s profitability.

Meanwhile, Hidroelectrica, which is not a listed company, saw record profits in recent years after going through a big restructuring process. For this year, the company estimates a gross profit of over EUR 300 million.

Remus Borza, the restructuring specialist who has managed Hidroelectrica’s insolvency, thinks that the company should be valued at some EUR 7 billion. He is confident that the electricity producer will remain first in the ranking after its listing on the Bucharest Stock Exchange, which should take place next year.

This year no local company has managed to exceed the threshold of EUR 3 billion. The biggest local telecom operator, Orange Romania, ranks third, with an estimated market value of EUR 2.35 billion, down 2% year-on-year.

Car maker Automobile Dacia, part of French Renault group, went up to fourth, with an estimated value of EUR 2.17 billion, up 12% compared to last year.

Meanwhile, state-owned gas producer Romgaz dropped to fifth, with a market capitalization of little over EUR 2 billion, down 20% year-on-year.

 

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