Enrichment giant Urenco says it has delivered ‘another strong performance’ in the first half of 2009. It also confirmed that its expansion plans are ‘progressing well’ and that the National Enrichment Facility, under construction in New Mexico should be ready for operations this year.
Urenco has reported revenue of EUR438 million for the first half of 2009, down 8% or EUR40 million compared with the revenue for the same period in 2008. It has also reported a net income of EUR110 million for the first half of 2009, up 13%, compared with the same period last year.
Although volumes of Separative Work Unit (SWU) deliveries were higher during the first half of the year (+5%), revenue was lower due to the impact of foreign exchange movements on the hedged SWU sales price, which Urenco says naturally lags behind the actual exchange rate, and lower volume of feed deliveries. Average production costs fell by around 8% compared with the first half of 2008. Despite lower revenue, net income rose 13% due to the reduced average production costs, a lower depreciation charge and reduced net finance costs.
The reported first half results include pre-tax non-capitalised start-up costs of EUR26 million (2008: EUR25 million) relating to the National Enrichment Facility in New Mexico, US.
Capacity expansion continued in the first six months of 2009 with an additional 300tSW of production capacity brought on line at sites in Germany and the Netherlands.
Investments in new capacity in Europe and at the National Enrichment Facility totalled EUR357 million in the first half of the year (2008: EUR361 million), supported by our strong forward order book of more than EUR18.5 billion, which extends beyond 2025.
Urenco will continue to make significant investments in the second half of 2009 as the group builds additional enrichment capacity to support long-term demand from its customers. The National Enrichment Facility is progressing well and is expected to be ready for operations by the end of the year. Continued strong performance from Urenco’s existing operations is expected during the remainder of the year.
Helmut Engelbrecht, chief executive of the Urenco, commenting on the half-year results said:
“Urenco’s operations delivered another strong performance in the first half of 2009. Net income and EBITDA both increased compared to the same period a year earlier, and good progress was achieved across all of our capacity expansion projects. Our forward order book remains strong, and we expect 2009 to be another successful year for the Group.”
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