Revenues and profit of Romania’s Nuclearelectrica plunge in H1 on lower electricity prices

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.

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.

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).

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.

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).

(Photo: Nuclearelectrica.ro)