Areva posts stronger results

31 August 2007

France's state-owned Areva concern, the largest nuclear power company in the world, had revenues of Eur5.4 billion ($7.3 billion)  in the first half of 2007, up 6.7% on the same period last year.

Operating income was also up, by 3.9% to Eur207 million ($283 million), and Areva's backlog increased to Eur33 billion ($45 billion), a 31% increase compared with year-end 2006.

The company said that its uranium resources, also including measured, indicated, inferred resources and reserves, now amounted to 570,000 tonnes following the acquisition of UraMin. It also celebrated agreements with Mitsubishi to develop a medium-sized reactor as well as a deal with Rusal to enter into 50/50 joint ventures and to become the aluminium producer's sole supplier of electrical transmission and distribution equipment.

In addition, Areva noted the National Council for Energy Policy of Brazil had granted Eletrobras authorization to work with Areva on the construction of Angra 3, a pressurized water reactor begun by Siemens, whose nuclear business merged with Areva.

Anne Lauvergeon, CEO and chair of the executive board said that "negotiations with China Guangdong Nuclear Power Company for the sale of two EPRs and the corresponding long term procurement of the front-end fuel cycle, reached a turning point this summer."

Areva was less enthusiastic about its Olkiluoto 3 project, which it said "is now moving forward at a brisk pace." The results said that a previous financial provision for the cost of this project was supplemented. The provision takes into account an insurance policy that the group bought at the end of 2006 to cover the risk of losses to completion under EPR export sales contracts. The Reactors and Services division improved its performance by Eur36 million ($49 million) relative to first-half 2006 but still recorded a loss of Eur230 million ($314 million) for this period.

Anne Lauvergeon, CEO and chair of the executive board, said: "This adjustment slowed the operating income growth expected in the first half, but does not affect our objectives for the year: our goal is to achieve operating margin of 5% for 2007 as a whole." The first half figures showed an operating margin of 3.9%.

Further information

Areva

WNN: Areva completes acquisition of UraMin