Energoatom will try to end the year with a profit for the first time since the war

NAEK "Energoatom" plans to end the year with a profit for the first time since the beginning of the full-scale war, thanks to the recent increase in electricity tariffs for the population by 64%. This decision was adopted by the Cabinet of Ministers of Ukraine in June, and the company expects to improve its financial results.

This was announced by the company's vice president, Jakob Hartmuth, in an interview with Forbes. He noted that Energoatom will submit a new financial plan by the end of the year, taking into account changes in tariffs and other aspects of regulation. Hartmuth expressed hope that these changes will allow the company to achieve profitability and operate without losses.

Currently, Energoatom is ending the first quarter of 2024 with a financial loss of 5.5 billion hryvnias. Estimates of damages from the occupation of the Zaporizhzhia Nuclear Power Plant (ZAEP) amount to at least 36 billion hryvnias. The full amount of damages will be determined only after de-occupation and an independent assessment.

Jakob Hartmuth also indicated that due to the damage and destruction of the company's assets, the underproduction of electricity amounted to 87 million MWh, which resulted in underachieved revenues in the amount of 243 billion hryvnias. This seriously affected the financial condition of the company.

For comparison, the previous profitable year for Energoatom was 2021, when the company earned 5.9 billion hryvnias. However, during the war, the company accumulated significant debts as part of the special duties (PSO). The government policy, which includes raising tariffs for the population, is partly aimed at stabilizing the company's financial condition.

Despite this, NAEK "Energoatom" denied the information about the possibility of obtaining additional income from tariff increases. The head of the company Petro Kotin explained in an interview with Delo.ua that the tariff increase will not lead to additional funds. In 2023, the company has already transferred 128 billion hryvnias to the state enterprise "Energorynok" to compensate for low tariffs. In 2024, after the tariff increase, this amount will decrease to 108 billion hryvnias, which confirms the absence of additional income for the company.