Romanian nuclear energy producer Nuclearelectrica's profit up five-fold but profitability rate still low

Romania's nuclear energy producer Nuclearelectrica upped its profit five-fold in 2011, to some EUR 18.8 million, while posting a turnover of some EUR 348 million, a 5 percent increase on 2010. Its profitability rate is of some 5 percent. With over 2,100 employees, Nuclearelectrica sells most of the energy it produces on the regulated market, at low prices, set by the Energy Regulatory Authority (ANRE). In 2009, the company sold most of its energy production at EUR 28 per Mwh, even though it could have sold for some EUR 35.7 per Mwh on the free market, according to a calculation by Fondul Proprietatea, which owns shares in the company. The company has distribution contracts with Enel, CEZ, Electrica and E.ON, all of which run electricity distribution in Romania. Nuclearelectrica is involved in the Cernavoda nuke project, an estimated EUR 4 billion investment, together with Enel and ArcelorMittal Galaţi, after CEZ, GDF SUEZ, RWE and Iberdrola withdrawn from the project. Nuclearelectrica runs the 1 and 2 nukes at the Cernavoda unit editor@romania-insider.com (photo source: the company)