10 Aug 2022 20:19

Ukraine's Energoatom posts net loss of $130 mln compared to profit in same period of 2021

MOSCOW. Aug 10 (Interfax) - NNEGC Energoatom saw net losses of UAH 4.759 billion [over $130 million at current exchange rates] in January-June 2022 compared to UAH 1.123 billion in net profits for the same period in 2021.

According to the company's financial reporting, sales volume decreased by 17.4% to 32.625 million kWh.

According to the latest information from the IAEA as of the beginning of August, Energoatom was operating 10 reactors out of 15 available.

At the same time, revenues from electricity sales more than doubled to UAH 67.1 billion, which can be explained by the transition from October 1, 2021 from the commodity model to the financial model of special obligations to the population. Under this model, the company began to sell all electricity at the market price and compensate households for fees at the expense of sales. Previously, the NNEGC supplied resources to Guaranteed Buyer, a state-owned company, to provide electricity to households virtually free of charge.

In the structure of the company's net income of UAH 67.6 bln (a 1.6-fold increase), electricity sales accounted for 99%.

The company's total liabilities as of June 30 were 109.9 billion, including debt on bank loans totaling UAH 17.6 billion and tax liabilities totaling UAH 11.5 billion.

As of June 30, 2022, Energoatom increased its accumulated losses by 11.5% - to UAH 46.6 billion in six months.

In the explanatory note to the reporting, the company pointed to the suspension of investment projects, extension of the terms of their implementation, growth of the estimated cost, reduction of production volumes and, consequently, income, which will probably lead to growth of debts to creditors, suppliers and growth of operating and financial expenses.

At the same time, the company expects to expand its opportunities to export electricity to Europe in the future.

The government amended Energoatom's financial plan by an order dated August 5, 2022, but did not make it public.

Energoatom is the operator of four operating nuclear power plants in Ukraine. It operates 15 power units equipped with water-water power reactors with a total installed electric capacity of 13.835 GW.