Revenues and profit of Romania’s Nuclearelectrica plunge in H1 on lower electricity prices
<p>The revenues of Romanian nuclear group Nuclearelectrica (BVB: SNN), which operates the Cernavoda nuclear plant, dropped by 44% y/y to RON 2.1 billion (EUR 420 million) in H1 on lower electricity prices, but the net profit dropped by only 35% y/y to RON 843 million (EUR 170 million) in H1 due to lower tax on windfall incomes (as the realized electricity price dropped below the threshold), according to company’s press release.</p>

<p>The company’s market capitalization reached RON 13.88 billion (EUR 2.8 billion) after the price of its shares increased by only 2% y/y. This puts the annualized profit realized in H1 at 12%. The dividend paid out of last week’s profit resulted in an 8.08% yield.</p>

<p>The massive 44% decrease in the operating income realized by SNN in H1 was mainly due to the reduction of income from the sale of electricity by 45.5%, an evolution determined by the decrease by the same percentage of the weighted average price of electricity sold in the period January-June 2024 (the volume of electricity generated remained roughly the same).</p>

<p>The company sold a smaller amount of electricity in the more lucrative competitive market (-31.7% y/y, or 40.7% of the total volume of electricity sold) and the prices on this market segment plunged by 62.2% y/y in H1.</p>

<p>On the upside, the lower realized price resulted in a lower tax on windfall revenues (RON 6.5 million compared to RON1.46 billion in H1 2023).</p>

<p><em>(Photo: Nuclearelectrica.ro)</em></p>

<p><em>iulian@romania-insider.com</em></p>