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Cheshire uranium firm reports lower revenue but brighter prospects

Urenco, a Cheshire firm specialising in uranium enrichment, says “phasing of customer deliveries” is the reason why its half-year revenues and earnings are lower than forecast.

Despite the fall, the group expects a “substantial rebalance” in the second half and remains on target to achieve full year expectations.

Urenco, which has its headquarters at Capenhurst near Chester, enriches uranium for nuclear power plants.

One third of the group is owned by the UK government owns, a third by the Dutch government and the remaining third by German utilities Eon and RWE.

All parties are in discussions on how to extract value through Urenco, which could either be through a sale, or a flotation.

Urenco revealed that revenues for the six months to June 30 fell 45% to 384m euros and earnings before interest, tax, depreciation and amortisation (Ebitda) were 31% lower at 319m euros.

Net income was down 79% at 43m euros.

The company said: “Phasing of customer deliveries led to lower deliveries of enrichment services in the first half 2013, resulting in reduced revenues.

“Urenco experienced greater market activity in the international nuclear fuel market in H1 2013, resulting in an increased amount of agreed business for global enrichment services in the longer term.

“Revenues in H2 2013 are anticipated to be higher compared to H2 2012.”

Chief executive Helmut Engelbrecht said: “Urenco continues to deliver strong operational performance by meeting our H1 expectations and we remain confident in achieving our full year targets.

“I am particularly proud of the continued excellence in customer service and ongoing cost efficiencies delivered across the group.”

He added: “A stabilisation of the world nuclear market has been apparent over the current period.

“We have experienced increased procurement activity from our customers in H1 2013 and we remain confident in the long-term future of the nuclear sector as an essential part of the global energy mix.

“We continue to seek opportunities and identify areas of growth in new markets. The nuclear sector has an important role to play in meeting the world’s energy needs and we are proud to be an active part of it.”

This was posted in Bdaily's Members' News section by Simon Malia .

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