Analysis of the Economic Efficiency of an Energy Company

This paper aims to explore the economic efficiency of Hidroelectrica SA, a leader in renewable energy production in Romania, from a detailed and in-depth microeconomic perspective. The study aims to assess the company’s financial performance in the context of significant economic and geopolitical challenges such as the COVID-19 pandemic and the Russian-Ukrainian conflict. The research uses a qualitative methodology based on a case study, managing to integrate the analysis and interpretation of financial indicators in correlation with the dynamics of the energy market and the macroeconomic context of the analyzed period. Within the scope of the study, key microeconomic indicators such as EBITDA, degree of indebtedness, asset turnover or net profit were investigated to facilitate a deeper understanding of how the company manages resources and responds to external pressures. The collected data, sorted and selected from official sources such as quarterly and annual financial reports published by Hidroelectrica SA, the Bucharest Stock Exchange, and Eurostat, were interpreted and analyzed for the period 2021-2024, taking into account both the company’s listing on the stock exchange in 2023 and the desire to capture its evolution in time periods marked by global economic instability. The research results, divided into two distinct sections, highlight the company’s financial stability, reflected in a high net cash position, solid profitability margins, and a consistently low level of debt. The originality of the paper lies in the approach to the company’s financial performance alongside an analysis of the external context, providing an updated and relevant perspective for understanding the Romanian energy sector. This paper is addressed to students, professors, economic analysts but also to investors interested in the dynamics of the performance of a strategic company in a volatile economic climate.