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• Net Profit Reduction: 35% decrease, amounting to 692 million RON.

• Revenue from Energy Sales: Decrease of 40.9%, totaling 2,270 million RON.

• Electricity Cost Increase: 218 million RON due to higher costs in the balancing market.

• Personnel Cost Increase: 40 million RON due to higher salaries and employee incentives.

• Interest Revenue Decrease: 75 million RON reduction in net financial result.

• Income Tax Decrease: 117 million RON due to reduced profitability.

• OpEx Reduction (excluding windfall tax): 7.1% decrease, totaling 112 million RON.

• EBITDA Increase: 6.7% increase, amounting to 114 million RON.

• Net Profit Increase (compared to budget): 11% increase, totaling 128 million RON.

• Windfall Tax Decrease: From 2 billion RON to 110 million RON compared to 2023.

• Cost of Uranium Increase: 17% rise.

• Repairs and Maintenance Increase: 33% increase due to plant outages and maintenance needs.

• CapEx Expenditure: 41.7% completion, with 547 million RON spent out of a 1.3 billion RON budget.

• Electricity Sales Revenue (9 months 2024): 40.7% lower compared to 2023.

• Sport Market Revenue Increase: 57.1% increase, with a 106.3% rise in quantity sold.

• Balancing Market Revenue Increase: 690% increase, with a 78.6% rise in quantity and 342.8% increase in average price.

• Capacity Factor (September 2024): 86.18% accumulated capacity.

• Warning! GuruFocus has detected 3 Warning Signs with BSE:SNN.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Societatea Nationala Nuclearelectrica SA secured new loans amounting to 188 million RON for the financing of the small modular reactor project, indicating progress in their strategic initiatives.

• The company reported a significant reduction in windfall tax liabilities, decreasing from 2 billion RON to 110 million RON compared to 2023, positively impacting net profit.

• There was a 6.7% increase in EBITDA, amounting to 114 million RON, reflecting improved operational efficiency.

• The company has successfully completed the second phase of the unit refurbishment project, with a long-term framework agreement valued at EUR 240 million, marking a significant milestone.

• Societatea Nationala Nuclearelectrica SA has achieved 100% internal production of nuclear fuel bundles, reducing dependency on external suppliers and enhancing supply chain security.

Negative Points

• The company experienced a 35% reduction in net profit over the first nine months of 2024, primarily due to a 40.9% decrease in revenues from energy sales.

• There was a notable increase in electricity costs due to higher costs in the balancing market, resulting from plant outages, impacting financial performance.

• Personnel costs increased by 40 million RON due to higher salaries and employee incentives, adding pressure to operating expenses.

• The cost of uranium increased by almost 17%, and repairs and maintenance costs rose by 33%, contributing to higher operational costs.

• The company faced challenges in the sales mix due to regulatory changes, leading to a temporary shift towards short-term market sales, which affected revenue stability.