Janice R. Andrews
Romanian power producer Nuclearelectrica (BVB: SNN) announced a 31% decline in net profit for 2024, reaching RON 1.7 billion (EUR 343 million), driven by lower electricity prices and reduced production. The company, which operates Romania’s sole nuclear power plant, Cernavoda, saw a 37.6% drop in electricity sales revenue, with production falling 2.7% to 10 GWh.
Rising operating expenses, up 14.4%, further impacted profitability. However, a reduced contribution to the Energy Transition Fund partially offset these challenges. EBITDA also fell by 23.4% to RON 2.38 billion.
Following the preliminary results, Nuclearelectrica’s shares dropped 1.2% on February 28. Over the past year, SNN shares have lost nearly 15% of their value, underperforming the BET index, which grew by 11%.
The decline highlights the challenges faced by energy producers amid fluctuating market prices and rising costs. Nuclearelectrica remains a key player in Romania’s energy sector, but its performance reflects broader industry pressures. Investors and stakeholders will closely monitor its strategies to navigate these headwinds in the coming year.
