The operating margin and net margin also decreased by 10% and 8%, respectively, largely due to reduced electricity production, lower sales volumes, and a drop in electricity prices in both local and interconnected European markets.

Throughout the first six months of 2024, the company's performance was impacted by declining electricity prices and reduced sales volumes, which led to lower revenue from energy sales. The second quarter, in particular, contributed significantly to the overall decline. This period saw the implementation of changes to the MACEE mechanism beginning on April 1, 2024, which caused considerable market fluctuations in prices and traded quantities. These market adjustments coincided with a dry period, limiting the company's production capacity due to unfavorable hydrological conditions.

Net electricity production and sales decreased by approximately 22% in the first half of 2024 compared to the same period in the previous year, with 8,293 GWh generated between January and June 2024. This decline was primarily due to the hydrological conditions in the second quarter of 2024, where the average flow of the Danube dropped by about 25% compared to the same period in 2023.

Wholesale market revenues for January- June 2024 were impacted by several factors, including the reduced flow of the Danube, which led to lower energy deliveries, and a decrease in SPOT prices, especially from February to April 2024. The new MACEE trading regulations introduced in April 2024 further contributed to a 38% drop in wholesale market revenues compared to the same period in 2023. SPOT prices declined by about 30% and remained below the legal reference price for MACEE transactions during the first four months of 2024. Additionally, suppliers did not fully take over the quantities allocated to Hidroelectrica during the annual auction in December 2023 for delivery in 2024.