May 12 (SeeNews) - Nuclearelectrica, the operator of Romania's sole nuclear power plant Cernavoda, said on Friday its first-quarter net profit rose 26% on the year to 84 million lei ($20.1 million/18.5 million euro) due to lower expenses.
"The 25.7% increase in the net profit, compared to the operating gross profit increase of 41.5%, is determined by the fact that in the first quarter of 2017 a net financial expense of 1.83 million lei was incurred, compared to the similar period of 2016, when a net financial income of 10.3 million lei was registered, expense generated by the net currency exchange differences," Nuclearelectrica said in a statement filed with the Bucharest Stock Exchange, BVB.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by an annual 18% to 230.4 million lei in the first quarter, while earnings before interest and taxes (EBIT) jumped 41.5% to 107.4 million lei.
The company's total revenue rose by an annual 6.5% to 487.6 million lei.
Nuclearelectrica produced about 2.76 GWh of electricity in the three months through March, down 1.3% on the year. Electricity sales generated revenues of 483.9 million lei in the first quarter, up 8.4% from a year earlier.
In 2017, the company plans to invest 231.5 million lei, of which more than 196 million lei will be used for upgrade works at Cernavoda NPP, the report showed.
In 2016 Nuclearelectrica's net profit dropped 27% on the year to 108.7 million lei, influenced by the unfavourable fluctuations in foreign currency exchange rates, lower regulated energy transport tariffs and lower energy sales.
The Cernavoda plant, located in southeastern Romania, has two reactors of 700 megawatts each, which cover roughly a fifth of the country's power needs.
In February, Romania's energy ministry said that it intends to speed up negotiations with China General Nuclear Power Corporation (CGN) on the construction of reactors 3 and 4 of Cernavoda NPP. The negotiations with CGN were already extended three times in 2016.
In December 2015, Nuclearelectrica said it expects to set up a joint venture with CGN in 2016 and begin the construction of a pair of new units at the power plant, a project estimated at 6 billion euro ($6.5 billion) at the time, in two to three years. Under the memorandum of understanding on the project, the Chinese investor will hold a stake of at least 51% of the joint venture company that will do the job, while Nuclearelectrica will own at least 30%.
Nuclearelectrica shares were changing hands up 1.30% at 6.99 lei by 1223 CET on the Bucharest bourse.
The energy ministry holds a 82.4% stake in the company.
(1 euro =4.5443 Romanian lei)