Romanian state-controlled power producer Nuclearelectrica, which operates the Cernavoda nuclear power plant, reported a net profit of RON 108.7 million (EUR 24.2 million) last year, down 27% over the previous year.

The decrease was mostly related to the depreciation of the Romanian currency RON, which increased the company’s financial costs related to its long-term debt, which is mainly in foreign currency, according to preliminary financial report submitted to the Bucharest Stock Exchange on Wednesday.

The company’s net production of energy amounted to 10,388 GWh, down from 10,709 GWh in 2015. Operating income dropped by 6% to some RON 1.68 billion (EUR 374 million), due to lower revenues from the sale of electricity. Meanwhile, the operating profit EBIT was 1% lower compared to 2015, at RON 158 million (EUR 35 million).

In the first six months of 2016, the company’s management decided to carry out complex work and investments at Cernavoda’ Unit 1, according to the producer’s report. This should increase the production by 1.5-2% in the medium term.

The two power reactors at Cernavoda secure almost 20% of the country’s total electricity production.

Nuclearelectrica’s majority shareholder is the Romanian state, via the Energy Ministry, which holds 82.5% of the company’s shares. Investment fund Fondul Proprietatea holds a minority stake in Nuclearelectrica while the remaining shares are held by investors on the Bucharest Stock Exchange.

Nuclearelectrica may have to distribute 90% of its net profit as dividends, if the Government decides so, which would result in a gross dividend per share of about RON 0.315 and a dividend yield of 5.3%. The SNN shares were trading at RON 5.92 on Thursday, February 16, and the company had a market capitalization of EUR 393 million.

editor@romania-insider.com