I think we can start. Before that, please let me introduce myself. My name is Valentina Dinu. I am Investor Relations Officer. This is the conference call for the presentation of the financial statements for the first semester of 2026. With your permission, I would like to inform you that this conference call is going to be recorded for the purpose of posting the audio file on the website in order to allow full access to everyone who might be interested. Thank you for your understanding. With me, Daniel Adam, CFO of S.N. Nuclearelectrica. He is going to deliver the presentation, and then we can have questions from your side. This being said, Daniel, the floor is yours. Thank you.
Hello, everybody. We will present today the reviewed individual and consolidated financial statements for the six-month period ended June 30, 2026. I will jump to the this month's financial result highlights. The net profit for the period was almost RON 1.2 billion, with RON 370 million versus last year, 2025, and above the budget with RON 26 million. Just a note here, the company absorbed in the first half of the year the effects of the unplanned shutdown of unit 2 due to the transformer issue. Going back to the results. We have an increase from sales of electricity, +2.7%. This is coming from better every selling prices, which increased with almost 13% due to a more favorable trading mix, and also compensated by a quantity lower with almost 9%.
This is the effect of the unplanned shutdown of the unit 2, and also partly in this period, we had this time planned shutdown for unit 1, which this year was longer than usual due to some preparation we are doing for the refurbishment of unit 1. The financial result was higher with RON 51 million. We had an increase in interest income. Also, the interest rates were quite high in the first half of the year and a positive impact from currency exchanges. Windfall tax, as you may know, was eliminated starting the second half of last year, and this will provide the reduction with RON 500 million. We had a small saving in spare parts and so on. The decreases, as I already stated, purchased electricity, since we had to make up for the lost production we had from unit 2. We have one higher depreciation and amortization.
As you may know, at the end of last year, we reevaluated the real estate assets. We have an increase in operating expenses of RON 61 million, mainly driven by the ANRE contribution. They increased since October last year, the tariff of EUR 4 per MW coming from EUR 2 per MW prior. Of course, due to the higher results, we have also higher income tax expense. I will skip this slide since we kind of went through the main deviations here. As you can see also in this waterfall presentation, the biggest effect of the better result this year compared to last year is the windfall tax. On the revenue side, higher sales, electricity, and financial result, and compensated by some negative deviations from the costs, namely traded electricity depreciation, other operating expense, and income tax. On individual versus consolidated financial performance.
Still, the result situated above RON 1 billion, RON 1.1 billion almost. We do have some consolidation effects coming from sales of energy made to S.N. Nuclearelectrica. We have some processing services invoiced by our uranium processing plant, which are compensated by revenue recognized by FPCU. Personnel cost of subsidiaries and so on. The deviations are quite small versus the individual due to the smaller size of our subsidiaries. In terms of financial position, we have an increase in non-current assets of RON 240 million or almost 2%. This is RON 960 million coming from an increase in net value of tangible assets. RON 1.4 billion almost represents a net impact of the inflows and outflows of tangible assets from the reporting period. Mainly inflows related to the investment projects, and the biggest one there is the unit 1 refurbishment project.
We have a net decrease of RON 404 million, which represents the expense of depreciation and impairment of fixed assets, and RON 700 million represents the current portion of the loans granted to subsidiaries, which has been classified as part of the current assets due to the below one year time horizon. The current assets have increased with 20%, RON 879 million, mainly due to the increase in other assets measured at amortized cost, resulting from the recognition of the short-term portion of the loans granted. And RON 344 million due to an almost 13% increase in cash and bank deposits with a maturity of more than three months. Non-current liabilities increased with RON 18 million. Increase related to update of liability provisions like for the DICA storage and the low radioactive waste.
Current liabilities, we had an increase of 100% mainly due to the recognition of the dividends payable in FY 2025, which amounted of almost RON 1.2 billion payment which was effected in July 2026. Now on the equity we have the normal increase for retained earnings. On the individual versus consolidated financial position, also here we have a small impact of the consolidation, where the consolidated equity is increased to RON 444 million versus the individual. The difference is mainly on non-current assets. The difference is mainly represented by the cancellation of intragroup transaction, loans granted, and shares held in subsidiaries. Of course, net of those subsidiaries' fixed assets. On the current assets, we have the elimination of the intragroup transaction that I mentioned also on the previous slide. In the equity, we have the retained earnings from the subsidiaries' financial result following the adoption of IFRS.
On the total liability side, we have the trade payables of the subsidiaries remaining after the elimination of intragroup transaction. Mainly the JP Morgan loan contracted by S.N. Nuclearelectrica last year and the payables to capital asset suppliers of our Feldioara company and nuclear cassette. On the sales of the electricity, we have an evolution of +RON 71 million coming from first half of 2025- 2026. As previously stated, we had a better price coming from different mix, but decreased by almost 9% lower quantity due to the unplanned shutdown of unit 2 during the first half of this year. In terms of sales structure, we can see versus last year an increase in all the markets, competitive spot and also the average. We have a significant increase. On competitive market for PCCB, the quantity of electricity sold in 2026 represented 85.6% of the total sales, compared with 89.8%.
The average selling price during the reporting period was RON 578 almost. An increase of almost 13% as we previously discussed. Also, the spot market, the quantities increased and represented 14% of the total volume, and the average price was almost RON 609 compared with RON 550. Due to this, we are seeing also a bit of the Iran issue, which impacted the gas, which also impacted our energy prices in the market. On the OpEx, we have an OpEx of RON 1,654,000,000, lower than last year with RON 274 million. But with RON 73 million below the budget. Increasing costs in the period versus last year are coming from depreciation and amortization, RON 66 million. Cost of traded electricity, we mentioned prior, RON 111 million and the ANRE contribution, which increased in October last year.
The windfall tax decrease of almost slightly RON 500 million, and we had a lower cost of uranium due to the fact that due to these outages of plant in unit 1 and unplanned for unit 2, also the consumption of fuel was lower. The cost with the spare parts, we have a decrease of 34.6%. On the CapEx side, we had a CapEx spending of RON 1,360,000,000 in first half of this year. Slightly lower than H1 2025, which was almost RON 1.4 billion. This compared with the total investment program for the year of RON 3,421,000,000. We have a decreased degree of completion compared similar previous period. This year, we have 39.8% versus last year where we had 41.3%. But, of course, this depends on the heterogeneity of the investments. In first half of the year, the investments were made according for the planning.
Some major aspects related to the main investments and the long-term strategic project. Unit 1 refurbishment in the first half of the year regarding the PCCB contract, reactor component manufacturing is advancing ahead of the schedule, and the fabrication of the calandria tube has been already completed. On April 16, the European Commission opened as a standard procedure, in all big project, but especially also in nuclear projects, an in-depth state aid investigation into Romanian state support of refurbishment of unit 1. In May, SNN announced the completion of the first continuous concrete pour for the permanent structures. The most complex operation of its kind carried out at the plant since the construction on unit 2. 3,470 cu m of concrete were used to either build a foundation, that is around 380 trucks of concrete.
In July 2026, SNN announced through a current report that the board of the European Investment Bank approved on 15th of July the granting of an EUR 800 million loan for the refurbishment project. On unit 3 and 4, in the first half of 2026, through an extraordinary general meeting of shareholder resolution, SNN was approved acting as a guarantor for EnergoNuclear in securing a loan up to EUR 46 million equivalent in USD from U.S. EXIM. By different resolution, in July 2026, the shareholders approved the loan agreement of up to EUR 75 million between the EnergoNuclear as borrower, SNN as a guarantor, and Export Development Canada as a lender for the financing of units 3 and 4 project. On SMR in February 2026, the SNN shareholders approved the adoption for the FID of the Doicești project.
In July 2026, SNN shareholders rejected the approval of the initiation of steps to assess the feasibility of updating the implementation strategy for SMR project. On CTRF, the Tritium Removal Facility project, in the first half of 2026, KHNP continued negotiating contracts for the non-contracted procurement packages, reaching 19 signed contracts out of 23 by the end of June. Construction activities were focused at the 95M level, encompassing structural metalwork assembly, formwork installation, bush hammering and so on. On June 2026, SNN announced that commencement of works on Europe's first Tritium Removal Facility located at Cernavodă, developed partnership with Korea. I think it's earlier. On the medical isotopes project, in the first quarter of 2026, SN, CNCAN approved the design change related to the project implementation. Also, a number of documents pertaining of conceptual design stage were reviewed and approved.
The nuclear safety reviews were completed and led the identification of the best solution for certain equipment, so that the nuclear safety and production continuity will not be affected. On the technical performances in terms of combined radioactive emissions for both units, everything is in green. We are at a cumulative level of 2 millisieverts versus an annual limit of 10. In terms of nuclear full burn-up rate, we are in the normal parameters and envelope. Of course, you can see the effects in May and June on the planned or unplanned outages. The same here on the capacity factor. Both units were affected by the planned or unplanned outages in May, June. That's all. Thank you very much for your attention.
Should we start with the question on the chat? I have a question from Cristian Petre from NN regarding the progress on the refurbishment of unit 1 compared to schedule. It will still be finalized in 32 months as it is scheduled. It was mentioned that it is going ahead of schedule, but achievement increase 39%.
Yeah. On the first question, we are with the total schedule on time and also on budget. The timeline of the project to have the commercial operation date in summer of 2030 didn't change. What we mentioned that is going ahead of the schedule is a part of the refurbishment, meaning the fabrication of the calandria tubes. In terms of the planned versus the achievement, we are comparing the achievement in June out of the 100% schedule for the year. It is not a lack of performance. It may just be from the fact that more works are scheduled during autumn than in spring. In terms of project performance, we don't have any red flags up until now, neither on time, neither on budget.
Thank you, Daniel. If you have any other questions, please. Okay, if no other questions, thank you very much for joining us in. We are going to publish the presentation, the audio file, and of course, the transcript of this conference.
Yeah.
We have one more from Cristian.
Yeah.
Can you comment on drought and force majeure?
Sure. As I am sure everybody knows, yesterday it was also the planned shutdown or the controlled shutdown because it was not planned. The controlled shutdown of unit 2 due to the severe drought that we are experiencing on the Danube. Unit 1 was also shut down in a controlled and safety manner on 28th of July. This is coming on historically low levels of the Danube. Basically, the Danube, not only Romania, across the basin, it is a 3rd of the multiannual July or August levels. I think a week ago or something like that, we already surpassed the record for low levels, which was standing since 1985. So 40 years ago, something like that. Unit 1 was stopped in end of July, unit 2 yesterday.
There were a lot of efforts done also by the government to address a bit some of the issue, and they did have a temporary benefit. As a general rule, there is a project which is mentioned also in the Support Law for units 3 and 4, Bala II underwater dam, I think it is a good explanation, that would solve this issue and provide the necessary water also for units 3 and 4. That project would increase the levels available in Cernavodă with more than 1 meter, as far as I understood. On force majeure. Following the stoppage of unit 1 in end of July, the company started the process of obtaining from the Chamber of Commerce, the branch of Constanța, force majeure certificate for our energy delivery contracts. These were awarded or issued to us this week, actually. This week.
Following that, we notified our customers that as of Wednesday, we are declaring force majeure until the end of August. I think 30th of August is the exact date. Of course, if the situation and the drought persists, probably we will have to extend that. We do not have a clear prognosis on the water on the Danube. There is some expectation that things will improve towards the end of August or beginning of September, but we shall see. So far, they are forecasts and not certainties.
Okay. Thank you, Daniel. If there are no more questions, as I said, we are going to publish the presentation, audio file, and transcript on our website by the end of this day. We do have one more question. Miss Irina Rilan, please.
Good afternoon. Yes, I also wrote it in the chat, but raised the hand just to make sure it will be addressed. Regarding this, if you have any estimate of the financial impact of this forced shutdown. How do you think the profitability will be impacted, if you have a guidance for us at this point? What this force majeure exactly implies for Nuclearelectrica from the commercial perspective? Will just a certain amount of revenues not be recorded in Q3? If there will be any penalties or any obligations for any quantities to buy at the market price to honor them? If you could a bit detail what should we expect from next quarter's financials and how the impact will be, and also if you have any guidance on the shutdown costs and restart costs for this operation. Thank you.
We don't have, at least for investor use. They are not certain enough to disclose this. Our expectation is that this will be solved in beginning of September, and depending on how long it will be, then a more thorough and precise calculation can be done, which of course, we will share with you at a later date. What I can say, that both the profitability and cash flow can sustain some hits. In terms of what force majeure implies. According to the law, because this is part of the Civil Code, actually. Based on this force majeure certificate, and of course, as you know, also the government declaring the southeast of the country this alert and emergency situation. That means that we are allowed since Wednesday, I think it was this week, to suspend the execution of our sales agreements due to this reason.
This will allow us not to be obliged to buy from the market the energy that we cannot produce in the reactors. But mind you, we did that since the stoppage of unit 1, until we had the certificates of force majeure. We did buy from the market in order to honor the agreements. I think it was another question.
Any penalties also? You will not have to pay any penalties for this?
That's basically the force majeure. That way, suspending the contract without penalties. That's the whole point, that this mechanism exists in the law. That they cannot penalize us.
Okay. Thank you. That's perfectly clear. Thank you.
Yeah.
Regarding the costs of shutting down and restarting production.
I don't want to say that we don't have an internal view, but it's not fully baked and certain enough to make it public at this stage. It also depends quite a lot, because one of the effect that we have is that we are not selling energy. That's the impact. This is highly dependent on the time that the water levels will be sufficient enough to restart our reactors. Then we can draw the line, make a clear calculation, and probably will announce it in the next call. We do have an internal view based on some assumptions, but I'm not comfortable enough with the assumptions to share it with you.
Understand. Thank you.
You are welcome.
Accounting question, if force majeure units close.
What is it?
We are.
You record on depreciation.
We are still record. We will record the depreciation, yeah. Basically, the force majeure, it is applied on the commercial contracts because there is a procedure before you ask the Chamber of Commerce for a force majeure certificate. Basically, you are notifying the customers, and they are giving you a certificate for each agreement that you want to notify. Force majeure will not have an impact on how we calculate and book depreciation.
Yes, that is it.
Well, thank you very much. Hope to see you next time for the November reporting for the third quarter. Have a great afternoon. Thank you.