Nuclearelectrica, the operator of Romania's sole nuclear power plant
Cernavoda, said on Tuesday it has raised its target for this year's net profit
by 254.8% to 99 million lei ($29 million/22.4 million euro), as revenues are
seen rising faster than costs.
The new estimation for total revenues is
4.9% higher than the previous one, while the expenditures projection is up by a
mere 0.3%, the company said in a statement filed with the Bucharest Stock
Exchange.
Theincreaseinprojectedrevenuesisbasedonhighersales,ariseinthetransmissiontarrifffortheelectricitybilledtocustomersasofJuly
1,andan increase infinancialrevenues mainly due tofavourableforeign
currencyexchange rates.
The gross profit is seen at 124.3 million lei
this year, up 213.5% from the previous projection.
Commenting on the
announcement, Raiffeisen Bank said in a note to investors: "We see the news as
neutral for SNN shares as the budget from early 2014 was excessively pessimistic
and recently the company has not ruled out a higher pay-out ratio than the
budgeted one."
In 2013 the company posted a record-high net profit
of423.4million lei, up from 34.5 million lei a year earlier, reflecting a
shift in the management focus from the technical side and production towards
financials and profit, the company's CEO Daniela Lulachesaid
earlier.
Nuclearelectrica's first-half net profit dropped 69%to 60.4
million leimainly due to a 20% annualdrop in powerprices on competitive
marketsand by the impact of a tax on special constructionsintroduced this
year.
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.
Blue chip Nuclearelectrica was trading 1.64% higherat
8.07lei by 0957CET on Tuesday.