"The listing of Nuclearelectrica continues"

Reporter: What are the estimated financial results of the company, for the first semester of this year?

Daniela Lulache: According to the preliminary data, in the first six months of this year, we had a turnover of 930.5 million lei, and a gross profit of over 256.3 million lei. Compared to the similar period of last year, we have seen an increase in turnover of approximately 20%. In terms of profits, in the first half of 2012, the company had losses of 33.7 million lei. Thus, at this moment, from a financial point of view, the company is on a right and solid path. I stand by my commitment that my term at Nuclearelectrica will mean an increase in the company's profitability. We are at a time when the entire economy is stabilizing and is resuming its growth after the difficult years of economic crisis. We can speak of a similar route for our company.

Reporter: How much energy has Nuclearelectrica sold in the first six months of the year?

Daniela Lulache: In the first quarter of 2013, CNE Cernavodă has sold 4.3% more energy YOY. "Societatea Naţională Nuclearelectrica" has sold more than 5.27 million MWh of electricity. Out of that amount, 12% was sold on the Day-Ahead Market and 39% on the PCCB. The remaining 49% was sold through regulated contracts, at a price specified by the ANRE.

The total value (without VAT) of the energy contracted and sold on the energy market in H1 2013 has amounted to approximately 382 million lei, and the amount earned from the competitive market (PCCB and the PZU) was about 545.56 million lei.

For the second quarter of 2013, we have contracts for about 97.5 % of the output scheduled for CNE Cernavodă.

For the remaining volume, we intend to sign a contract for a volume to be delivered in Q4 2013, with the remaining energy to be sold on the spot market (PZU).

Reporter: What is the current status of the listing of Nuclearelectrica?

Daniela Lulache: Since I am aware that some contradictory information has appeared in the media about the listing, I want to emphasize the fact that the process for the listing of Nuclearelectrica continues.

According to the commitment of the Romanian authorities to the IMF, the World Bank and the European Commission, the listing of the company is expected to take place in September 2013.

Connecting with investors and capital is the natural strategy for growth for Nuclearelectrica and for any company after the period of economic crisis.

Reporter: What are your plans for improving the efficiency of the company in the medium and short term?

Daniela Lulache: When it comes to technical efficiency, the company plans to remain at its current level. We are almost constantly working at full capacity with both units, and the fuel consumption is lower than the figures in the project; the planned shutdowns are well scheduled, they will be completed as provided or even earlier. The percentage of unplanned shutdowns is three times than the average world percentage for nuclear plants.

So far, the management of Nuclearelectrica has been almost exclusively focused on technical objectives and functionality, and the change I will impose during my term is focusing on growing the profitability of the company.

Nuclearelectrica has always been a productive, effective engine, and it needs to become a profit engine for shareholders, for the Romanian state. Profit rates of 2-5% are very low for a company that produces almost 20% of the nation's energy.

In the short run, because we are talking about the listing of the company, the main goal of the management of the company is to increase shareholder value. The listing is a priority for now and it is based on that goal that a part of the progress targets will be set.

In the medium run, the goals are to improve the financial performance of Nuclearelectrica, introducing and following the corporate governance norms and the management system. All of these are included in the management plan whose strategic axis is to have a company with a robust corporate structure, aligned to the international standards of good practice, with financial performance that is proportional with its size and market position.

Reporter: What investments are scheduled for this year?

Daniela Lulache: The company's investment plan was designed in such a way as to respond to the need for modernization and retooling of some of the systems, due to economic considerations (cutting specific consumptions, improving some characteristic parameters for the processes served, with a positive effect on efficiency), as well as due to legal considerations - the implementation of some improvements associated with Nuclear Security, Environmental protection and Labor Security, all of which represent requirements of the regulation authorities in the industry (CNCAN and the Ministry of the Environment).

One of the goals of my term is to secure and to increase the investments which we are making and which Nuclearelectrica needs. The amount of the investments scheduled for 2013 is about 300 million lei.

Reporter: Is a revision of the company's budget necessary?

Daniela Lulache: The review of the revenue and expense budget on June 30th is under way. Depending on the conclusions of this analysis and the factors of influence forecasted for the second half of the year, we will decide whether a budget correction is necessary.

Reporter: Thank you!