Nuclearelectrica forecasts operating income of RON1.74 billion in 2014, down 16% from RON2.07 billion estimated in the previous year, the company said in its revenue and expenditure budget for 2014.
“The company’s revenue and expenditure budget was drafted considering the current market condition and the evolution of the electricity consumption, as well as the electricity volume and prices on the regulated market,” Nuclearelectrica said.
Sales are seen dropping 12.3% to RON1.63 billion, from RON1.85 billion in 2013.
Overall revenue is expected to fall 21% on the year to RON1.82 billion, while total expenditure is predicted to rise 1.7% to RON1.78 billion.
Last year’s results are preliminary and have not been audited. Nuclearelectrica is expected to release its financial report for 2013 at the end of February.
Nuclearelectrica forecasts operating expenses will rise 8% year-on-year to RON1.78 billion in 2014. Costs with taxes and fees are forecast to double at RON218 million, largely due to a recently introduced tax on special constructions.
Electricity production is expected to reach 10.5 million megawatt hours, of which 3.74 million MWh will be sold on the regulated market.
Nuclearelectrica recently filed a legal complaint against Romania’s energy watchdog ANRE for forcing the company to sell electricity to households at regulated tariffs, which are below market prices.
Nucleareletrica is controlled by the state, through the Energy Department. The company operates two 700-megawatt reactors at its Cernavoda plant, covering around 20% of Romania’s energy consumption.
At around 1:00 pm, Nuclearelectrica’s shares traded flat at RON9.5 in Bucharest, amid a slightly declining market. (EUR1=4.4754)