Hidroelectrica and BCR sign contract for credit line worth 85 million lei

Hydropower producer Hidroelectrica and the Romanian Commercial Bank (BCR) have signed a contract for a credit line worth 85 million lei in order to issue bank guarantee letters, according to documents posted on the energy producer's website. 

The contract is valid until December 18, 2018. 

From the overall amount, the sum of 36 million lei will be used to issue a bank guarantee letter, issued in favour of Romelectro, to guarantee the payments for the delivered equipment for retrofitting of Stejaru water plant. The rest of the sum is required to issue a letter of guarantee for good execution for energy buying or selling contracts. 

Energy producer Hidroelectrica had a net profit last year of 1.36 billion lei, the highest in the company's history. In 2016, the net profit of the company was of 1.228 billion lei. Also, in the first trimester of this year, Hidroelectrica had a net profit of 485 million lei, as compared to 399 million lei in the same period of 2017, as a result of the improved hydro situation. The EBITDA margin rose from 67 percent in 2016 to 69 percent last year and 74 percent in the first trimester of this year.