Romanian power producer Nuclearelectrica posts 30% lower profit for first quarter

Romanian energy producer Nuclearelectrica (BVB ticker: SNN), which operates Romania's only nuclear power plant at Cernavoda, posted a net profit of RON 102 million (EUR 23 million) for the first quarter of 2014, 30 percent lower compared to the same period last year. The company’s electricity sales were down 11 percent, to RON 433 million (EUR 97 million), although the amount of energy sold was unchanged compared to the first three months in 2013 at 2.8 TWh. However, energy sales prices on the free market were 13 percent lower this year. Nuclearelectrica’s operational profit before interest, tax, depreciation and amortization (EBITDA) declined by 28 percent due to lower revenues. It was also impacted by the tax on special constructions introduced by the Romanian government at the beginning of this year, which increased the company’s expenses with taxes and fees by RON 22 million (EUR 4.94 million) in the first quarter. Nuclearelectrica has been listed on the Bucharest Stock Exchange (BVB) since September 2013 and has a market capitalization of RON 2.36 billion (EUR 530 million). The company is 81 percent owned by the state while investment fund Fondul Proprietatea holds a 9.7 percent stake. Nuclearelectrica's share price lost 12.9 percent on Wednesday, May 14, on the ex-dividend day. The company pays a gross dividend of RON 1.21 per share which is 12.6 percent of the price at which the shares traded the day before. Andrei Chirileasa, andrei@romania-insider.com