S.N. Nuclearelectrica (SNN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit was RON 513.7 million, down year-over-year but above budget, with revenues rising on higher electricity prices despite a decrease in quantity sold.

• Operating income increased 24.9% year-over-year to RON 1,517.6 million, driven by higher electricity sales.

• Higher costs, especially windfall tax and the new Energy Transition Fund contribution, offset revenue gains.

• Major investment projects advanced, including Unit 1 refurbishment, Units 3 & 4, SMRs, tritium removal, and medical isotopes.

• No unplanned outages occurred; technical performance and reactor operations were normal.

Financial highlights

• Sales of electricity increased 23.6% year-over-year to RON 1.44 billion, with average selling price up 25.7%.

• Operating expenses rose 1.3% year-over-year excluding windfall tax, mainly due to higher uranium fuel and fuel bundle production costs.

• CapEx reached RON 475 million, sharply higher than Q1 2024, with a 14% project completion rate vs. 5% last year.

• Non-current assets increased by RON 258 million, mainly from advances for investment projects.

• Net financial result improved 16.9% year-over-year to RON 81.3 million, driven by higher interest income and favorable FX impact.

Outlook and guidance

• Windfall tax mechanism extended to June 30, 2025, with a revised methodology.

• Personnel expenses expected to align more closely with budget in coming quarters, with hiring based on necessity.

• Financing for future CapEx will combine local and international banking, with bonds also considered.

• Approval of the 2025 income and expenditure budget was confirmed in April 2025.

• Details on financing plans to be provided in the next few months.