Nuclearelectrica reported net profit of 1.28 billion RON, up 5.6 percent in first half of 2023

Nuclearelectrica announces a net profit of 1.28 billion RON, up 5.6 percent for the first semester of 2023. Operating profit (EBITDA) decreased by 4.7 percent compared to the same period of the previous year, significantly influenced by the increase in the cost of the contribution to the Energy Transition Fund for the period 1 January – 30 June 2023, which was 149.5 percent higher than the tax on additional income due for the similar period of the previous year.

The main reasons of the increase of this tax are the changes made to the calculation methodology detailed below, as well as the increase in the basis for computation, represented by the revenues from the sale of electricity which, in the first half of 2023, are higher than in the first half of 2022.

Operating revenues increased by 20.4 percent supported by the 19.8 percent increase in electricity sales revenues. This increase is determined by the 21.5 percent increase in the weighted average price, including Tg, of the electricity sold in the first half of 2023 compared to the weighted average price of the same period of 2022, considering that a similar total quantity of electricity was sold (-1.3 percent).

Compared to the same period of last year, the key change occurred in the sale mix is represented by the introduction of the Centralized Electricity Acquisition Mechanism (“MACEE”), set up under the Government Emergency Ordinance no. 153/2022, for the period 1 January 2023 – 31 March 2025, in which SNN participates as producer. OPCOM S.A., as sole purchaser, according to Article 2 and Article 3(2) of the Government Emergency Ordinance no. 153/2022, buys electricity from producers at a price of RON 450/MWh, and sells it to buyers at the same price. In the first half of 2023, the Company sold via MACEE a quantity of 2,107,985 MWh at the price of RON 450/MWh, which accounts for 42.52 percent of the total electricity sold during the period.

The amount of electricity sold on the competitive market of bilateral contracts decreased by 48.7 percent, accounting for 43.32 percent of the total sold quantity, and the average sale price on this market increased by 108.5 percent (price without Tg).

The amount of electricity sold by SNN on the spot market (DAM and IDM) in the first half of 2023 decreased by 16.4 percent, accounting for 13.81 percent of the total sold quantity, and the average sale price on this market decreased by 48.5 percent (price without Tg).