In Q1 2022, Nuclearelectrica recorded operating revenue growth of 165% YoY, EBITDA growth of 164% YoY, and a net profit of RON 818.9m, an increase of 249% YoY.
Nuclearelectica recorded op. revenue increase of 165% YoY, driven by an increase of 164.7% in the weighted average price of electricity sold in Q1 2022, as compared to that price in Q1 2021, also taking into account the total quantity of electricity sold was 1.9% higher. The quantity of electricity sold on the competitive market of bilateral contracts grew by 1%, given that the avg. sale price on this market was 154% higher YoY. The quantity of electricity sold on the spot market in Q1 2022 was 6% higher, given that the avg. sale price on this market was up 190% YoY.
Moving on, operating expenses increased by 116% YoY, and amounted to RON 911.2m. The main driver of this increase is by far the windfall tax expense for electricity producers, which amounted to RON 459.2m (Q1 2021: RON 0). The expense with the windfall tax comes from the difference between the avg. monthly selling price of electricity and the price of RON 450/MWh (this price is based on the law).
Even with this increase, the Company’s EBITDA amounted to RON 1.11bn, an increase of 164% YoY. The net financial result amounted to RON 18.7m (Q1 2021: RON -442k), 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 155.9m, an increase of 226% YoY. As a result, and because of the above-mentioned factors, the Company’s net profit amounted to RON 818.9m, an increase of 249% YoY.
Meanwhile, looking at the Company’s balance sheet, total assets increased by 10.9% YoY and amounted to RON 10.7bn. The increase was mainly driven by an increase in current assets to RON 4.65bn (+32% YoY), which itself was driven by an increase in trade receivables (+93.2% YoY) as well as the cash and cash equivalents (+70% YoY).
On the other hand, total liabilities also increased (+18% YoY) and amounted to RON 1.49bn. The increase was driven by an increase in current liabilities (+40% YoY) to RON 929.5m, which itself was a result of an increase in accounts payable and other liabilities (+46% YoY) and corporate tax (+339% YoY). The total investment in 2022 is planned for RON 702.8m, an increase of 62% YoY, of which, 14% was completed by the end of Q1 2022.
Nuclearelectrica key financials (Q1 2021 vs. Q1 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.
