Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Current liabilities decreased by 34% mainly due to the reduction of the windfall tax.
- Revenue is higher by 5% than the budgeted level, indicating better-than-expected performance.
- Operational costs are 8.5% lower than budgeted, contributing to a higher EBITDA by 90% and net profit by 30% than budgeted levels.
- The company completed a framework agreement for the refurbishment of Unit 1 with an estimated value of approximately EUR240 million.
- The European Commission issued a positive opinion on the Units 3 and 4 project, reflecting favorable assessment on technical and nuclear safety aspects.
Negative Points
- Net profit for the first six months of 2024 decreased by 35% compared to the same period in 2023.
- Revenue from energy sales decreased significantly, with a net impact on profit decreasing by RON229 million.
- There was an increase in other operating expenses by RON57.8 million due to higher technological water prices.
- Traded electricity costs increased due to negative prices on the balancing market, impacting costs by RON107.6 million.
- The average selling price of electricity decreased by 43%, significantly affecting revenue from the competitive market.
Q & A Highlights
Q: Can you provide an overview of the financial position at the end of the second quarter?
A: The total non-current assets position remains stable compared to the previous year. Current assets are down by 11% due to an increase in trade receivables, mainly from reduced electricity service. Current liabilities decreased by 34%, primarily due to a reduction in the windfall tax. (CFO)
Q: What factors contributed to the 35% decrease in net profit for the first half of 2024?
A: The decrease is mainly due to a reduction in revenue from energy sales, with the windfall tax representing a significant portion. Additionally, there was an increase in other operating expenses and traded electricity costs. (CFO)
Q: How did the sales structure change over the last year?
A: Electricity sold through the centralized mechanism increased from 43% to 59% of total sales, while sales on the competitive market decreased from 57% to 40%. However, the percentage of sales on the competitive market increased in Q2 compared to Q1. (CFO)
Q: What are the key highlights of the company's CapEx and strategic projects?
A: The planned investment value for the year is RON1.8 billion, with a completion degree of 19%. Key projects include the refurbishment of Unit 1, development of Units 3 and 4, small modular reactors, and the tritium removal facility project. (CFO)
Q: Can you elaborate on the progress of the small modular reactors project?
A: Nuclearelectrica and RoPower Nuclear signed a contract for the front-end engineering and design phase two with Fluor Corporation. The shareholders approved increasing the loan facility up to USD243 million, to be accessed if no other financing sources are available. (CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
