Nuclearelectrica loses 2.3% of growth due to GEO 114 – document

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Bogdan Tudorache

Nuclearelectrica (SNN) could have estimated an increase in total revenue by 10.5% in 2019, instead of only 8.2% in the current budget, in the absence of the consequences of GEO 114.

„The income level is influenced by the provisions of GEO no. 114/ 2018 on the regulated electricity price. Thus, according to the ANRE decision no. 326/ 25.02.2019, SNN has the obligation to sell in the regulated market an electricity quantity of 1,376,963 MWh at the regulated price of 188.22 RON/ MWh (without Tg), by 37 RON lower than the average weighted sale price that the company will obtain in 2019 on the competitive market (price with a high degree of certainty, given that at the date of BVC 2019 the company has a large share of electricity supply already contracted). Thus, the unrealized revenues as a result of applying the provisions of GEO 114/2018 amount to 50,865 thousand lei. Consequently, the revenue growth rate of the 8.2% budget proposal is distorted by these limitations. The real percentage growth rate of total revenue that could have been considered in the absence of GEO no. 114/2018 would have been 10.5%,” says the fundament note for the income and expenditure budget (BVC), consulted by energynomics.ro.

„The draft income and expenditure budget for 2019 provides a gross profit of ROL 447,161 thousand (+ 22.2% vs. budgeted 2018, -21.9% versus 2018) and a net profit of ROL 350,041 thousand (+18, 5% vs. budgeted in 2018, -14.8% versus 2018). The results are obtained on the total revenues of ROL 2,463,671 thousand (+ 14.9% vs. budgeted 2018, + 8.2% versus 2018) and total expenditures of ROL 2,016,510 thousand (+13, 4% vs. budgeted 2018, + 18.4% versus 2018), and on the profit tax estimate at 97,120 thousand lei (+ 37.7% vs. budgeted 2018, -40.1% versus 2018 ),” also reads the document.

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