S.N. Nuclearelectrica (SNN) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 decreased by 35% year-over-year to 1,284.7 million RON, mainly due to a 40.9% drop in energy sales revenue and higher costs from unplanned outages and personnel expenses.

• EBITDA for 9M 2024 was 1,811.2 million RON, down 28.1% compared to 9M 2023, reflecting lower revenues and increased operating expenses.

• Financial position remains strong with total assets of 13,063.6 million RON and equity of 11,918.9 million RON as of 30.09.2024.

• Non-current assets increased, primarily from new loans for the small modular reactor project, while current assets declined due to lower receivables and cash.

• Current liabilities fell by almost 300 million RON, mainly from reduced state and windfall tax payables, but tax liabilities rose by 65 million RON.

Financial highlights

• Revenue from electricity sales for 9M 2024 was 3,277 million RON, down 40.9% year-over-year, mainly due to a 38.9% decrease in average selling price for similar quantities sold.

• Net profit for 9M 2024 was 1,284.7 million RON, a 35% decrease from 1,976.6 million RON in 9M 2023.

• EBITDA increased by 6.7% (114 million RON) and net profit rose by 11% (128 million RON) compared to budget, driven by a 7.1% reduction in OPEX (excluding windfall tax).

• Windfall tax expense dropped significantly from 2,059 million RON to 111 million RON compared to 2023.

• Total operating expenses (excluding windfall tax) increased by 26.9% year-over-year, mainly due to higher traded electricity, personnel, and maintenance costs.

Outlook and guidance

• Net profit for 9M 2024 exceeded the budget by 11%, driven by lower-than-budgeted operating expenses and higher financial income.

• Management expects a continued trend toward longer-term contracts in Q4, after being forced into short-term markets in Q2 and Q3 due to regulatory and market changes.

• Ongoing strategic projects include Unit 1 refurbishment, Units 3 and 4 development, small modular reactors, tritium removal facility, and medical isotope production.

• Recent market price increases are noted, but no predictions are made about their duration.

• The Income and Expenditure Budget for 2024 was approved and subsequently amended multiple times during the year.