S.N. Nuclearelectrica (SNN) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 decreased by 34.6% year-over-year to RON 843.1 million, mainly due to lower electricity sales revenues and higher operating expenses.

• EBITDA for H1 2024 was RON 1,175.4 million, down 27.8% year-over-year.

• Revenue exceeded budget by 5%, and net profit was 30% above budgeted levels.

• Total assets declined by 4.6% compared to December 2023, with a notable decrease in current assets and trade receivables.

• Sales of electricity dropped by 45.5% year-over-year, driven by a 43.4% reduction in average selling price for a similar quantity sold.

Financial highlights

• Total revenues for H1 2024 were RON 2,033.5 million, a 45.3% decrease year-over-year.

• Operating expenses (excluding windfall tax) increased by 35.3% year-over-year, mainly due to higher traded electricity, personnel, and other operating costs.

• Windfall tax dropped sharply to RON 6.5 million from RON 1,461.7 million in H1 2023.

• Average selling price dropped 43% year-over-year, from RON 745 to RON 420 per MWh.

• Current assets fell 11% due to higher trade receivables, while current liabilities dropped 34% mainly from windfall tax reduction.

Outlook and guidance

• The company continues to invest in strategic projects, including Unit 1 refurbishment, Units 3 and 4 development, and small modular reactors, with 19% of the RON 1.8 billion investment program completed as of H1 2024.

• Shareholders approved increased loan facilities for SMR and Cernavodă Units 3 and 4 projects to support ongoing development.

• The company expects to achieve at least the budgeted profit for 2024, as per the amended Income and Expenditure Budget approved in July 2024.