In H1 2022, Nuclearelectrica recorded operating revenue growth of 127% YoY, EBITDA growth of 133% YoY, and a net profit of RON 1.2bn, an increase of 217% YoY.
In H1 2022, Nuclearelectica recorded an op. revenue increase of 127% YoY, which amounted to RON 3.14bn. This was driven by an increase of 143% YoY in the weighted average price of electricity sold, including the transmission to power grid tariff (transmission tariff ‘Tg’).
At the same time, the total quantity of electricity sold was 5.1% lower. The quantity of electricity sold on the competitive market of bilateral contracts decreased by 4.6%, given that the avg. sale price on this market was 133% higher YoY. The quantity of electricity sold on the spot market in H1 2022 was 7.7% higher, given that the avg. sale price on this market was 179.0% YoY higher(without Tg).
Moving on, operating expenses increased by 30% YoY, and amounted to RON 1.7bn. The main driver of this increase is by far the windfall tax expense for electricity producers, which amounted to RON 585.8m.
Even with this increase, the Company’s EBITDA amounted to RON 1.7bn, an increase of 133% YoY. The net financial result amounted to RON 50.3m, an increase of 5.4x, mainly due to a higher net financial revenue and lower financial expenses through the exposure to EUR and CAD.
Due to the overall higher earnings, income tax expense amounted to RON 234.8m, an increase of 197% YoY. As a result, and because of the above-mentioned factors, the Company’s net profit amounted to RON 1.2bn, an increase of 217% YoY.
Meanwhile, looking at the Company’s balance sheet, total assets increased by 6% since the beginning of the year and amounted to RON 10.2bn. The increase was mainly driven by an increase in current assets to RON 4.1bn (+16.8% YTD), which itself was driven by an increase in trade receivables (+7.7% YTD) as well as the cash and cash equivalents (+33.5% YTD).
On the other hand, total liabilities decreased (-4.1% YTD) and amounted to RON 1.2bn. The decrease was driven by a decrease in current liabilities (-2.3% YTD) to RON 646.7m, which itself was a result of a decrease in the current portion of long-term loans (-46.4% YTD) and deferred revenue (-14% YTD). Long-term liabilities also decreased by 6.1% YTD. Finally, the total investment in 2022 is planned for RON 703m, an increase of 62% YoY, of which, 52% was completed by the end of H1 2022.
Nuclearelectrica key financials (H1 2021 vs. H1 2022, RONm)
The influence of the Russia-Ukraine conflict
The Company also touched on the impact of the Russia-Ukraine conflict on its business operations. The Company does not have activities that depend on the areas under conflict or affected by sanctions (Russia, Ukraine, Belarus). Because of this, their sales in the foreseeable future should not be significantly affected.