In its latest financial report France’s Orano reports exceptional results for 2024, “benefiting from the one-off contribution of contracts with Japanese utilities in the Back End segment”. Revenue of €5,874m ($6,142m), up 23.0% on 2023 driven by the Japanese contracts “and supported by bullish markets in Mining and Front End”.
Earnings before interest, tax, depreciation & amortisation (EBITDA) was €2,067m compared with €1,228m in 2023 benefiting from the effects of the increase in revenue. Operating cash flow was €937m, compared with €663m in 2023.
Adjusted net income rose to +€597m from +€22m in 2023, benefiting from the increase in revenue “despite the provisions made in Mining to record the loss of control of subsidiaries in Niger”. Net investments were up +20.3% compared with 2023 while net debt totalled -€0.78bn compared with -€1.48bn at the end of 2023.
Commenting on the results, CEO Nicolas Maes said 2024 will go down as a special year with exceptional financial results, marked in particular by Back End export contracts, “but also difficult times from a human and operational point of view with the loss of control over our entities in Niger”. The group acknowledged the loss of operational control over its subsidiaries in Niger (Somaïr, Cominak and Imouraren) and removed them from the consolidated financial statements with effect from 1 December 2024.
Maes added: “In a favorable market, we will continue our efforts to improve industrial performance and develop our activities in 2025, with strong growth in investments. Concrete advances in nuclear medicine and the launch of the program to renew our treatment and recycling facilities illustrate this dynamic and our actions in favour of the climate and for a healthy and resource-efficient world.”
Orano listed key events of 2024:
- In September, Orano Med signed a licensing agreement with Sanofi on the marketing rights for AlphaMedix, with Orano Med remaining responsible for its production thanks to its global industrial platform under development. In October, Orano Med and Sanofi also signed an agreement to accelerate the development of next-generation internal vectorised radiotherapies as part of a new entity (Orano Med Theranostics). Sanofi will acquire a 16% stake in the new entity for €300m.
- In Orano laid the foundation stone for the extension at the Georges Besse II enrichment plant at the Tricastin site. The investment of €1.75bn approved by the Board in October 2023, will enable Orano to increase its production capacity by more than 30%, equal to 2.5m Separation Work Units (SWUs). First production is scheduled for 2028 and full commissioning in 2030.
- The Board of Directors of Orano in October noted the completion of a capital increase with preemptive subscription rights for a total amount of €299,999,952, through the creation and issue of 9,146,340 new ordinary shares. This transaction was fully subscribed and paid up in cash by the French State. Following its completion, Orano SA is 90.33% owned by the French State with Japan Nuclear Fuels Ltd and Mitsubishi Heavy Industries each having a 4.83% stake.
- In November Orano and its Japanese partners signed several contracts for the return of all Japanese nuclear waste still stored at the la Hague plant in La Manche. In accordance with the contracts, the equivalent in mass and radioactivity of this waste contained in the used fuel elements must be returned to Japan. Between 1981 and 1999, contracts for the processing of used fuel were signed with ten Japanese utilities. These enabled the recycling of fuel elements from Japanese nuclear reactors as well as the packaging of residual waste. Some 2,793 tonnes of fuel were processed at the Orano la Hague plant. Almost 97% of the total radioactivity has already been returned.
- In 2024, the group “experienced interference from the Nigerien authorities in the governance and control of the operations of its three subsidiaries Somaïr (63.5% owned), Cominak (69% owned) and Imouraren (63.5% owned)”. In this context and as a result, Orano deconsolidated these three entities in the group’s consolidated financial statements with effect from 1 December 2024.After several attempts at amicable resolutions that remained unsuccessful, Orano initiated the filing of several proceedings before the competent international courts in order to obtain compensation for its damage.
As to the financial outlook for 2025, Orano said: “After an exceptional year marked by the one-off contribution of contracts with Japanese utilities in the Back End, Orano is aiming for solid results in 2025.” It is looking to revenue close to €5bn; • an EBITDA to revenue rate of between 23% and 25%; and “a positive net cash flow whilst ensuring the ramp-up of the investment programme initiated in 2024”.
Maes told investors the Orano Group had signed an investment agreement in January with the Mongolian government for the development and operation of the Zuuvch Ovoo uranium mine. Orano envisages investing around $500m over the four years needed to develop the project, with total investment of some $1.6bn over the mine’s 30-year service life. An investment decision is expected by the end of this year with operations starting in 2028-2029. This “huge” project, with a nominal capacity of 2500 tU per year, will help to diversify Orano’s supplies, Maes said.
He added that Orano is also working on several other options to diversify its supplies, including projects in Uzbekistan and Canada. It also has the Trekkopje project in Namibia, mothballed in 2012 due to market conditions at the time. The company will “continue developing this option,” he said.
Commenting on the recent change in administration in the USA Maes said he did not anticipate that it would impact plans to build a new uranium enrichment plant in Tennessee. Orano announced its plans for the plant – known as Project IKE – last year. An investment decision on the plant will be made in 2026 or 2027.
