Growth despite costs for Areva

Friday, 4 March 2011

Areva has posted annual results for 2010 featuring a backlog of some €44.2 billion ($61.4 billion) but an operating loss this year of €423 million ($591 million) due to certain items. 

 

The French national nuclear services and technology company posted a 7% increase in revenue to €9.1 billion ($12.7 billion) during calendar year 2010, while predicting €12 billion in revenue next year based on the backlog. One factor boosting 2010 takings was a rise in average uranium sales price to $40.6 per pound, combined with a 7% decrease in operational costs in mines.

 

The renaissance starts here? Areva's nuclear and renewable revenues

 

However, among the particular items recognised was a "non-cash reversible impairment" of €126 million on account of rescheduling of the Trekkopje project in Namibia. Another €121 million was set aside for the French state's conditions on the closing of the George Besse uranium enrichment plant.

 

Some €417 million ($582 million) was provided for the loss on completion of new reactor projects. Areva said this included €367 million ($512 million) for Olkiluoto 3. A company presentation, however, noted that Areva is accelerating construction periods for EPR units based on its experience in China. Based on current schedules, Olkiluoto 3 will take 86 months from first concrete to operation. For the Taishan units this will take only 46 months.

 

Renewables were unprofitable for Areva in 2010, making an operating loss of €123 million, twice that in 2009. This was put down to technical troubles at the Alpha Ventus offshore installation and development costs of the solar business.

 

Apart from these particular items, operating income grew some 60.7% to €532 million ($743 million). In the last year the company has raised €7.1 billion ($9.9 billion) for its future development and reduced net debt by €2.5 billion to stand at €3.6 billion ($5.0 billion).
 
Researched and written
by World Nuclear News