Mochovce with detrimental impact on SE
The massive overspending on the completion of the Mochovce nuclear power plant is reflected in the financial performance of Slovenské elektrárne. Back in 2011, the company posted a €457m net profit, but just €73m last year. At the current power prices and a €5.4bn completion budget, the power plant will break even in 40 years and Mochovce won’t improve SE’s performance. This has already impacted SE’s value, as Enel only received €375m from EPH for a 33% stake last year. The completion was apparently a political rather than a financial decision, one made by ex-PM Robert Fico and his nuclear lobby allies. The overspending was far from inevitable, though, stemming from bad management by Enel, neglectful oversight, and poor coordination of suppliers. SE emphasizes that Mochovce will be operational for decades to come, and power prices might increase during this period.