Electromagnetica sells eleven low-power hydropower plants for 33.5 million lei

Electromagnetica is selling eleven low-power hydropower plants, located in the Suceava River Basin, for 33.5 million lei including VAT, according to a report of the producer and supplier of energy and lighting fixtures published yesterday on the Stock Exchange website of Bucharest Stock Exchange (BVB).

The first part of the operation took place in the middle of this week when, following a competitive outcry, a bidder awarded the asset consisting of land, buildings (hydro plants) and equipment, owned by Electromagnetica.

The activity transfer contract, respectively the sale-purchase contract, will be signed with the bidder within 30 working days from the date of signing the award minutes, under the condition of obtaining the agreement of the Competition Council, if necessary. In the event that the agreement is not obtained within 45 days from the signing of the adjudication minutes, the activity transfer contract and the sale-purchase contract will be concluded between the parties within a maximum of five working days from the expiry of the 45 days, under the suspensive condition of obtaining the agreement of the Competition Council, the adjudicator having the obligation to pay the full price on the date of signing the contract of activity transfer, according to the BVB report.

For the first three months of this year, Electromagnetica reported a turnover of 27.1 million lei, 50% below that of the first quarter of 2023, and a loss of 3.1 million lei.

Manufacturing sales fell 48% in the first quarter of 2024 compared to the same period in 2023, mainly due to lower revenues generated by the CIL and vehicle charging business lines. electrical (SIVE), based on the measures adopted to make the company's activities more efficient.

Licensed activities, in particular energy supply, decreased by approximately 60%, amid lower energy sales, as a result of the significant decrease in the price of electricity (monthly average prices in the Day-Ahead Market falling in the first quarter of 2024 by 35% ) and of the effects induced by the current legislation regarding capping and compensation of energy related to end customers, according to the company's quarterly report.

The company will publish its financial results for the first half of the year on August 14. Infinity Capital Investments owns 65.4% of the producer and supplier of energy and lighting fixtures, whose stock market valuation amounts to almost 150 million lei.