Half Year 2026 Societatea Nationala Nuclearelectrica SA Earnings Call

August 14, 2026

Speaker #1: In order to allow full access to everyone who might be interested, thank you for your understanding. With me, Mr. Daniel Adam, CFO of Nuclearelectrica. He's going to deliver the presentation and then we can have questions from your side.

Speaker #1: This being said, Daniel, the floor is yours. Thank you.

Speaker #2: Hello, everybody. We'll present today the reviewed individual and consolidated financial statements for the six-month period ended June 30, 2026. I will jump to the six-month financial results highlights.

Daniel Adam: Hello, everybody. We will present today the reviewed individual and consolidated financial statements for the six-month period ended 30 June 2026. I will jump to the six months financial results 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 H1 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 average selling prices, which increased with almost 13% due to a more favorable trading mix, and also compensated by a quantity lower with almost 9%.

Speaker #2: The net profit for the period was almost 1.2 billion RON, with an increase of 370 million RON versus last year, 2025, and above the budget by 26 million RON.

Speaker #2: 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.

Speaker #2: Going back to the results, we have an increase from sales of electricity, plus 2.7%. This is coming from better average selling prices, which increased by almost 13%.

Speaker #2: Due to a more favorable trading mix, and also compensated by a quantity lower by almost 9%—this is an effect of the unplanned shutdown of Unit 2, and also, in part, in this period we had the planned—this time planned—shutdown for Unit 1, which this year was longer than usual due to some preparations we are doing for the refurbishment of Unit 2.

Daniel Adam: 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 H1, and a positive impact from currency exchanges. Windfall tax, as you may know, was eliminated starting the H2 of last year. 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 a higher depreciation and amortization.

Speaker #2: Unit 1. The financial result was higher, at $51 million. We had an increase in interest income, and interest rates were quite high in the first half of the year.

Speaker #2: And positive impact from currency exchanges. The fuel tax, as you may know, was eliminated starting in the second half of last year, and this will provide a reduction of 500 million RON.

Speaker #2: And we had a small saving in spare parts and so on. The decreases, as I already stated, were in purchased electricity, since we had to make up for the lost— the lost production we had from Unit 2.

Speaker #2: We have higher depreciation and amortization. As you may know, at the end of last year we re-evaluated the real estate assets. And we have an increase in operating expenses of $61 million, mainly driven by the INDR contribution. They increased it since October last year—the tariff went to €4 per megawatt from €2.

Daniel Adam: 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 megawatt coming from EUR 2 per megawatt 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.

Speaker #2: Per megawatt, prior. And of course, due to the higher results, we also have a higher income tax expense. I will skip these slides, since we kind of went through the main deviations here.

Speaker #2: As you can see also in this waterfall presentation, the biggest— the biggest effect of the better result this year compared to last year is the windfall tax.

Speaker #2: On the revenue side, higher sales electricity and financial result, and compensated by some negative deviations on the costs. Namely, traded electricity depreciation other operating expense and income tax.

Speaker #2: On individual versus consolidated financial performance, the result is still situated above 1 billion, almost 1.1 billion. We do have some consolidation effects coming from sales of energy made to Energo Nuclear, and we have some processing services invoiced by our uranium processing plant, which are compensated by revenue recognized by FPCU.

Daniel Adam: 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 EnergoNuclear. We have some processing services invoiced by our uranium processing plant, which are compensated by revenue recognized by FPPU. 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 coming RON 960 million coming from an increase in net value of tangible assets. RON 1.4 billion almost represents the 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.

Speaker #2: Personnel cost of subsidiaries, and so on. But 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 $240 million RON, or almost 2%.

Speaker #2: This is coming—$960 million—is coming from an increase in the net value of tangible assets. $1.4 billion almost represents the net impact of the inflows and outflows of tangible assets during the reporting period.

Speaker #2: Mainly, inflows are related to the investment projects, and the biggest one there is the Unit 1 Refurbishment Project. We have a net decrease of $404 million, which represents the expense of depreciation and impairment of fixed assets.

Daniel Adam: We have a net decrease of RON 404 million, which represents the expense of depreciation and impairment of fixed assets. 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 the assets measured at amortized cost, resulting from the recognition of the short-term portion of the loans granted. 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.

Speaker #2: And $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 1 year time horizon.

Speaker #2: The current assets have increased with 20%. $879 million RON 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.

Speaker #2: And $344 million due to an almost 13% increase in cash and bank deposits with maturities of more than 3 months. Non-current liabilities increased by $18 million RON, related to the update of liability provisions, such as for the DCA storage and low radioactive waste.

Speaker #2: Current liabilities increased by 100%, mainly due to the recognition of the dividends payable in Q4 2025, which amounted to almost $1.2 billion. This payment was effected in July 2026.

Daniel Adam: Current liabilities, we had an increase of 100%, mainly due to the recognition of the dividends payable in Q4 2025, which amounted to almost RON 1.2 billion payment, which was effected in July 2026. 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 intra-group transaction, loans granted, and shares held in subsidiaries, of course, net of the subsidiaries fixed assets. On the current assets, we have the elimination of the intra-group 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.

Speaker #2: And on the equity we have the normal increase through return on interest. On the individual versus consolidated financial position, also here we have a small impact of the consolidation.

Speaker #2: With the consolidation, equity is increased by $444 million compared to the individual statements. The difference is mainly in non-current assets and is mainly represented by the cancellation of intra-group transactions.

Daniel Adam: The difference is mainly represented by the cancellation of intra-group transaction, loans granted, and shares held in subsidiaries, of course, net of the subsidiaries fixed assets. On the current assets, we have the elimination of the intra-group 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.

Speaker #2: Loans granted and shares held in subsidiaries. Of course net of the subsidiaries fixed assets. On the current assets we have the elimination of the intra-group transactions that I mentioned also on the previous slide.

Speaker #2: And in the equity we have the retained earnings from the subsidiaries financial result following the adoption of FIRS. On the total liability side, we have the trade payables of the subsidiaries remaining after the elimination of intra-group transaction.

Daniel Adam: On the total liability side, we have the trade payables of the subsidiaries remaining after the elimination of intra-group transaction, mainly the J.P. Morgan loan contracted by EnergoNuclear last year and the payables to capital asset suppliers of our Feldioara company and nuclear asset. On the sales of the electricity, we have an evolution of +RON 71 million coming from H1 2025 to 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 H1 of this year. In terms of sales structure, we can see versus last year an increase in all the markets, competitive spot. 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%.

Speaker #2: Mainly, the JP Morgan loan contracted by Energo Nuclear last year, and the payables to capital asset suppliers of our FDR company and Nuclearelectrica SA.

Speaker #2: On the sales of electricity, we have an evolution of plus 71 million, coming from the first half of 2025 to 2026. As previously stated, we had a better price coming from a different mix, but decreased by almost 9% lower quantity.

Speaker #2: 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, on average, we have a significant increase.

Speaker #2: 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 $578 almost.

Daniel Adam: The average selling price during the reporting period was RON 578 almost, an increase of almost 13% as we previously discussed. The spot market, the quantities increased by 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. Now 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 over half a billion RON.

Speaker #2: An increase of almost 13%, as we previously discussed. Also, in the spot market, the quantities increased and represented 14% of the total volume. The average price was almost $609 compared with $550. Due to this, we are also seeing a bit of the higher run issue, which impacted the gas and, as a result, also impacted our energy prices in the market.

Speaker #2: Now on the OPEX, we have an OPEX of $1 billion 654 million. Lower than last year with $274. Million RON. But with 73 million below the budget.

Speaker #2: Increasing costs in the period versus last year are coming from depreciation and amortization: 66 million. Cost of traded electricity we mentioned prior: 111 million RON.

Speaker #2: And the INDR contribution which increased in October last year. And the withhold tax decrease of almost half a billion slightly over half a billion RON.

Speaker #2: And we had a lower cost of uranium due to the fact that, because of these outages of Plant Unit 1 and the unplanned outage for Unit 2, the consumption of fuel was lower.

Daniel Adam: 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 of the spare parts, we have a decrease of 34.6%. On the CapEx side, we had a CapEx spending of RON 1,360,000 in the H1 of this year. Slightly lower than H1 2025, which was almost RON 1.4 million. This compared with the total investment program for the year of RON 3,421,000,000. We have a decreased degree of completion for 2020 previous period. This year we have 39.8% versus last year where we had 41.3%. Of course, this depends on the heterogeneity of the investments. In H1 of the year, the investments were made according for the planning.

Speaker #2: And the cost to the spare parts we have a decrease of 34.6%. On the CAPEX side, we had an CAPEX spending of $1 billion 360 million.

Speaker #2: In first half of this year slightly lower than H1 2025 which was $1. almost $1.4 million billion RON. . And this compared with the total investment program for the year of $3 billion 421 million.

Speaker #2: We have a decreased degree of completion of operating previous period: 39.8%, versus last year, where we had 41.3%. But, of course, this depends on the heterogeneity of the investments.

Speaker #2: And in the first half of the year, the investments were made according to the planning. Some major aspects are related to the main investments and the long-term strategic project.

Daniel Adam: Some major aspects related to the main investments and the long-term strategic project. Unit 1 refurbishment. In the H1 of the year regarding the EPCF contract, reactor component manufacturing is advancing ahead of the schedule and the fabrication of the calandria tube has been already completed. On 16 April, 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 structure. The most complex operation of its kind carried out at the plant since the construction on Unit 2. 3,470 cubic meters of concrete were used to either put the foundation. That is around 380 trucks of concrete.

Speaker #2: Unit 1 refurbishment in the first half of the year regarding the PPC-free contract reactor component manufacturing is advancing ahead of schedule. The fabrication of the Calandra tube has already been completed.

Speaker #2: On April 16, the EU Commission opened, as a standard procedure in all big projects but especially also in nuclear projects, an in-depth state aid investigation into Romanian state support of refurbishment of Unit 1.

Speaker #2: In May, SNN announced the completion of the first continuous concrete pour for the permanent structures, the most complex operation currently carried out at the plant since the construction on Unit 2.

Speaker #2: 3,000 470 cubic meters of concrete were used to execute the foundation that's around 380 trucks. Of concrete. In July 2026 SNN announced through a current report that the board of the European Investment Bank approved on 15 of July the granting of the $800 million EUR loan for refurbish the refurbishment project.

Daniel Adam: In July 2026, SNN announced through a current report that the board of the European Investment Bank approved on 15 July the granting of an EUR 800 million loan for the refurbishment project. On Units 3 and 4, in the H1 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 US EXIM. By a 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 projects. On SMR, in February 2026, the SNN shareholders approved the adoption for the FID of the DHS project.

Speaker #2: In Units 3 and 4, in the first half of 2026, through an external regional meeting, a shareholder resolution for SNN was approved, allowing SNN to act as a guarantor for Energo Nuclear in securing a loan of up to €46 million (equivalent in USD) from USXC.

Speaker #2: And by different resolution in July 2026, the shareholders approved the loan agreement of up to €75 million between Energo Nuclear as borrower, SNN as guarantor, and Export Development Canada as lender.

Speaker #2: For the financing of Unit 3 and 4 projects, on SMR in February 2026, the SNN shareholders approved the adoption of the FID for the Duchess project.

Speaker #2: And in July 2026, SNN shareholders rejected the approval of the initiation of steps to assess the feasibility of updating the implementation strategy for the SMR project.

Daniel Adam: 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 H1 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 the structural metalwork assembly, formwork installation, basemat ring and so on. On June 2026, SNN announced the commencement of works on Europe's first Tritium Removal Facility located at Cernavodă, developed by Samsung Engineering, I think it's earlier. On the medical isotopes project, in Q1 2026, SNN General Council approved the design change related to the project implementation. Also, a number of documents pertaining of conceptual design stage were reviewed and approved.

Speaker #2: On CTRF, the Titanium Removal Facility project, in the first half of 2026 KHMP continued negotiating contracts for the non-contracted procurement packages, reaching 19 signed contracts out of 23 by the end of June.

Speaker #2: Construction activities were focused at the 95-meter level, encompassing structural metalwork assembly forms for installation, Bashkam ring, and so on. In June 2026, SNN announced the commencement of works on Europe's first city removal facility located at Cernavodă, developed in partnership with Korea—I think it's earlier.

Daniel Adam: On June 2026, SNN announced the commencement of works on Europe's first Tritium Removal Facility located at Cernavodă, developed by Samsung Engineering, I think it's earlier. On the medical isotopes project, in Q1 2026, SNN General Council approved the design change related to the project implementation. Also, a number of documents pertaining of conceptual design stage were reviewed and approved.

Speaker #2: On the medical isotope project, in the first quarter of 2026, SN Nuclearelectrica approved the design change related to the project implementation. Also, a number of documents pertaining to the conceptual design stage were reviewed and approved.

Speaker #2: The nuclear safety reviews were completed and led to the identification of the best solution for certain equipment, so that nuclear safety and production continuity will not be affected.

Daniel Adam: 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 green. We are at a cumulative level of 2 millisieverts versus a normal limit of 10. In terms of nuclear fuel 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 outage here. 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.

Speaker #2: On the on the technical performances in terms of combined radioactive emissions for both for both units everything is is in green. We are at a cumulative level of 2 millisieverts versus an unlimit of 10.

Speaker #2: In terms of nuclear full burn up on in in terms of nuclear full burn up rate we are we are in in the normal parameters and envelope.

Speaker #2: Of course, you can see the effects in May and June, or 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 and June.

Speaker #2: And that's all. Thank you very much for your attention.

Speaker #1: To start with the question in the chat, I have a question from Christian Petre from NN regarding the progress on the refurbishment of Unit 1 compared to schedule.

Valentina Dinu: To be start with the question on the chat. I have a question from Cristian Petra from NN regarding the progress on the refurbishment of unit 1 compared to schedule.

Valentina Dinu: To be start with the question on the chat. I have a question from Cristian Petra 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 the achievement increased 39%.

Speaker #1: It will still be finalized in 32 months as it is scheduled. It was mentioned that it is going ahead of schedule as planned, but achievement increased by 39%.

Valentina Dinu: It will still be finalized in 32 months as it is scheduled. It was mentioned that it is going ahead of schedule, but the achievement increased 39%.

Speaker #2: Yeah. On on the first question we are with the total schedule on on time and also on budget so 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 part of the refurbishment meaning the fabrication of the calandria calandria tubes and in terms of the the planned the planned versus the achievement we are comparing the achievement in June out of the 100% schedule for the year.

Daniel Adam: 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 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's 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.

Speaker #2: So, the performance is not a lack of performance; it may just be from the fact that more work is scheduled during autumn than in spring.

Speaker #2: So, in terms of project performance, we don't have any red flags up until now, neither on time nor on budget.

Speaker #1: Thank you, Daniel. If you have any other questions—if no other questions—thank you very much for joining us. We are going to publish the presentation, the audio file, and, of course, the transcript of this conference. And we have one more strong question: Christian Petre, can you comment on "drop" and force majeure? Sure.

Valentina Dinu: Thank you, Daniel. If you have any other questions, please. Okay, if no other questions, thank you very much for joining us. We are going to publish the presentation, the audio file, and of course, the transcript of this conference.

Daniel Adam: Yeah.

Valentina Dinu: We have one more still.

Valentina Dinu: Yeah.

Valentina Dinu: Cristian, can you comment on drought and force majeure?

Daniel Adam: Sure. As I am sure everybody knows, yesterday it was also the planned shutdown of, 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 28 July. This is coming on historically low levels of the Danube. Basically, the Danube, not only Romania, across the basin, it is a third of the multi-annual 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.

Speaker #2: On as I'm sure everybody knows yesterday it the planned shutdown of or the control shutdown because it was not planned the control shutdown of Unit 2 due to the severe drought that we are experiencing on the Danube Unit 1 was also shut down in a control and safety manner on 28th of July this is coming on historically low levels of the Danube basically the Danube is a third and not only Romania across the basin it's a third of the multi-annual July or August levels and we I think couple of a week ago or something like that we already surpassed the record for low levels which was standing since since 1985.

Speaker #2: So, 40 years ago, something like that. And Unit 1 was stopped at the end of July. Unit 2—yesterday, there were a lot of efforts done also by the government to address a bit some of the issues, and they did have a temporary benefit. As a general rule, there is a project which is mentioned also in the support law for the Ministry of Water, Balat 2 underwater dam. I think it's 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 by more than 1 meter, as far as I understood.

Daniel Adam: There were a lot of efforts done also by the government to address a bit some of the issue, and they did have temporary benefits. As a general rule, there is a project which is mentioned also in the support law for Unit 3 and 4, Bala to 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 Constanta, force majeure certificate for our energy delivery contracts. These were awarded or issued to us this week, actually. This week.

Speaker #2: On force majeure following the stoppage of Unit 1 in end of July our the company started the process of obtaining from the chamber of commerce the branch of Constanza force majeure certificate for our delivery energy delivery contracts this was these were awarded or issued to us last this week actually yeah this week and following that we notified our customers that as of Wednesday we are declaring force majeure towards the end of 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'll have to to extend to extend that.

Daniel Adam: Following that, we notified our customers that as of Wednesday, we are declaring force majeure until the end of August. I think 3 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.

Speaker #2: We don't 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'll see.

Speaker #2: So far, there are forecasts but not certainties.

Speaker #1: Okay. Thank you, Daniel. If there are no more questions, as I said, we're going to publish the presentation audio file and transcript on our website by the end of this day.

Valentina Dinu: 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.

Speaker #1: We do have one more question. If Irina Reylan, please.

Speaker #3: 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 I mean how do you think the profitability will be impacted if you have a guidance for us at this point and what this force majeure exactly implies for Transelectrica for Nuclearelectrica from the commercial perspective I mean we'll just certain amount of revenues will not be recorded in Q3 if there'll be any penalties or any obligations for any quantities to buy at the market price to honor them I mean if you could a bit detail what what should we expect from next quarter's financials and how how the impact will be and also if you have any guidance on the shutdown costs and restart cost for this operation.

Irina Rilan: 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. If you have any guidance on the shutdown costs and restart costs for this operation. Thank you.

[Analyst]: 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. If you have any guidance on the shutdown costs and restart costs for this operation. Thank you.

Speaker #3: Thank you.

Speaker #2: We don't have, at least for—how to say—for investor use, there are not, how to say, certain enough grounds to disclose this. Our expectation is that this will be solved in the 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.

Daniel Adam: 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 is 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.

Speaker #2: What I can say is that both the profitability and cash flow can sustain some some hits. On in terms of of what force majeure implies according to the law because this is part of the civil code actually based on this force majeure certificates and of course as you know also the government declaring the south east 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 of our sales agreements due to this due to this reason.

Daniel Adam: 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.

Speaker #2: This will how to say 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 of force majeure we did buy from the market in order to honor the the agreements.

Daniel Adam: 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.

Speaker #2: And I think it was another question.

Speaker #1: And also, you will not have to pay any penalties for this.

Irina Rilan: Any penalties also, you will not have to pay any penalties for this?

[Analyst]: Any penalties also, you will not have to pay any penalties for this?

Speaker #2: That's that's that's basically the force majeure that's why it's suspending the contract without penalties. That's the whole point I that this is this mechanism mechanism exists in the law.

Daniel Adam: That is basically the force majeure. That is why it is suspending the contract without penalties. That is the whole point, that this mechanism exists in the law. That they cannot penalize us.

Speaker #2: That they cannot.

Speaker #1: Okay, thank you. That's perfect. Thank you.

Irina Rilan: Okay. That is perfect. Thank you.

[Analyst]: Okay. That is perfect. Thank you.

Speaker #2: Yeah.

Daniel Adam: Yeah.

Speaker #1: And regarding the cost of shutting down and restarting production,

Irina Rilan: Regarding the cost of shutting down and restarting production.

[Analyst]: Regarding the cost of shutting down and restarting production.

Speaker #2: 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.

Daniel Adam: I do not want to say that we do not have an internal view, but it is 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 is 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 am not comfortable enough with the assumptions to share it with you.

Speaker #2: And it also depends quite a lot because one of the effects that we have is that we are not selling energy. That's the impact.

Speaker #2: This is highly dependent on the time when the water levels will be sufficient enough to restart our reactors. Then we can draw the line, make a clear calculation, and probably announce it in the next call.

Speaker #2: We do have an internal view based on some assumptions, but I'm not comfortable enough with those assumptions to share it with you.

Speaker #1: Understand. Thank you.

Irina Rilan: Understand. Thank you.

[Analyst]: Understand. Thank you.

Speaker #2: You're welcome.

Daniel Adam: You are welcome.

Speaker #1: Accounting question in force majeure. I know it's closed. Your records are not appreciated.

Valentina Dinu: Accounting question if force majeure unit close, not is.

Daniel Adam: We are-

Valentina Dinu: You record on depreciation.

Speaker #2: We are still, we will record the depreciation. Yeah. Basically, the force majeure is applied to the commercial contract 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.

Daniel Adam: We will record the depreciation, yeah. Basically, the force majeure, it applied on the commercial contract 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.

Speaker #2: Force majeure will not have an impact on how we calculate and book depreciation.

Speaker #1: Yes, that's it. Well, thank you very much. Hope to see you next time for the November reporting for the third quarter. Have a great afternoon.

Valentina Dinu: Yes, that's it.

Irina Rilan: Well, thank you very much. Hope to see you next time for the November reporting for the Q3. Have a great afternoon. Thank you. Bye.

Valentina Dinu: Well, thank you very much. Hope to see you next time for the November reporting for the Q3. Have a great afternoon. Thank you. Bye.

Speaker #1: Thank you. Bye.

Speaker #2: Thank you. Bye bye.

Daniel Adam: Thank you. Bye-bye.

Cristian Petra: Thank you. Bye.

[Unknown Speaker]: Thank you. Bye.