Nuclearelectrica H1 2024 net profit declines 34.6pct to RON 843 million

The Nuclearelectrica National Corporation (BVB symbol SNN) has reported a net profit of RON 843.135 million in the first half of 2024, down 34.6% year-on-year according to a report submitted on Wednesday to the Bucharest Stock Exchange (BVB).Operating profit (EBITDA) decreased by 27.8% compared to the same period last year, significantly influenced by a 43.2% decrease in sold electricity prices, for a similar amount of electricity sold.Operating income decreased by 44%, mainly due to the 45.5% decrease in income from the sale of electricity, determined by the same decrease in the weighted average price of the electricity sold during 1 January - 30 June 2024, compared to the weighted average price from the same period of 2023, considering the sale of a similar total amount of electricity.The amount of electricity sold by SNN in the first 6 months of 2024 on the competitive market decreased by 31.7%, accounting for 40.37% of the total sold quantity, and the average sale price on this market decreased by 62.2% (price without Tg).The cost of the contribution to the Energy Transition Fund for the period 1 January - 30 June 2024 is of RON 6,493 thousand (1 January - 30 June 2023: RON 1,461,691 thousand), as a result of the decrease in sales prices below the regulated level for which the contribution is calculated and due.Operating expenses, less depreciation and impairment and CFTE, increased by 35.3% during the period 01 January - 30 June 2024 compared to the same period of 2023. This increase is driven mainly by the increase in positive imbalance (surplus) expenses at negative prices in the balancing market, driven by the new invoicing mode introduced by CIGA.The financial result positively influenced the net result, but in the period 01 January - 30 June 2024, net financial income was recorded, decreasing by 23.3% compared to the similar period of the previous year, as a result of the 33% decrease in the interest income obtained. The main currencies with exposures are EUR and CAD.Corporate income tax expense decreased by 29.5% as a result of the decrease in the taxable profit calculated for the period 01 January - 30 June 2024 compared to that calculated for the similar period of the previous year, also influenced by the impact of deferred income tax expenses and income recognized during the reporting period.Nuclearelectrica is a national electricity, heat and nuclear fuel corporation in Romania operating under the authority of the Ministry of Energy, with the Romanian government holding 82.49% of the shares, and the other shareholders 17.50%, after the company's listing on the stock exchange in 2013.The company contributes over 18% of nuclear energy to the total energy production and 33% to the total CO2-free energy production in Romania.The Cernavoda National Power Plant (CNE) branch operates two CANDU nuclear units, two of the most efficient units among the more than 400 nuclear power plants in the world.