Romanian nuclear power producer Nuclearelectrica triples profit in H1 despite windfall tax
Nuclearelectrica (BVB: SNN), the operator of Romania’s nuclear plant located in Cernavoda, announced that its net profit more than tripled in the first half of the year, to RON 1.22 bln (EUR 244 mln). This was despite the marginal 2.3% decline in the volume of electricity produced and the RON 586 mln (EUR 170 mln) of “additional income tax expense” - the windfall profit tax levied by the Government to energy producers in order to finance the ‘cap and subsidy’ scheme aimed at protecting households and small firms from excessive electricity prices.
The additional income tax is calculated as 80% of the revenues above RON 450 (EUR 90) per MWh. The average weighted sale price, for the quantities of electricity sold (without the bilateral market), in the first half-year of 2022, was RON 615 per MWh (including Tg) - more than double compared to RON 254 in the same period last year and the average price of RON 752 in the first half of this year on the markets where SNN is operating.
The average sale price for bilateral contracts in H1 was RON 534 per MWh (Tg included), an increase of 117 % compared to the average price recorded in the first half-year of 2021. On the day-ahead market (DAM), the average price realised by SNN was RON 1,030 per MWh (Tg included), compared to RON 290 (Tg included) recorded in the first half-year of 2021.
Nuclearelectrica’s revenues from the sales of electricity thus increased by 130% yoy to nearly RON 3.1 bln (EUR 620 mln) while the operating expenses, less depreciation and amortization and additional income tax, increased by only 30% yoy to RON 847 mln, shows the company's half-year report.
Nuclearelectrica has been one of the most profitable stocks on the Bucharest Stock Exchange in the last year, recording an increase of 67%, compared with a return of 15% for the BET-TR index.