S.N. Nuclearelectrica (SNN) Q4 2024 TU earnings summary

Executive summary

• Net profit for 2024 was RON 1.7 billion, down 32% year-over-year but 30.5% above the revised budget, mainly due to lower electricity sales and market prices, partially offset by a sharp drop in windfall tax.

• Revenue from electricity sales fell to RON 4,633.8 million, reflecting a 36.1% drop in average selling price and a 2.6% decrease in quantity sold.

• OPEX increased 14.4% year-over-year, mainly due to inflation and higher traded electricity costs.

• Significant investments advanced in Unit 1 refurbishment, Units 3 & 4, SMRs, tritium removal, and medical isotopes.

• Interest income declined due to lower interest rates in 2024.

Financial highlights

• EBITDA decreased 23.4% to RON 2.39 billion; EBIT dropped 31% to RON 1.71 billion.

• Windfall tax expense fell 89% to RON 289 million, reflecting lower selling prices.

• Non-current assets increased 8.4% (RON 636 million), mainly from loans to RoPower and EnergoNuclear.

• Equity increased to RON 12,343.2 million, up 7.3% year-over-year, due to profits and retained earnings.

• No outstanding borrowings at year-end; EURATOM loan fully repaid in November 2024.

Outlook and guidance

• The government is considering extending the Energy Transition Fund contribution period and modifying its calculation, with potential impacts on future results.

• Shift from spot to forward market sales expected to continue into 2025.

• Budget for 2025 to be published March 6, with GMS approval scheduled for April 9.

• Dividend proposal for 2024 to follow legal requirement of 50% payout.

• Management changes at Cernavoda NPP and in nuclear safety roles aim to support ongoing operations and investment projects.