French nuclear company Areva has confirmed its targets for 2012 and 2013 and says its strategic commercial recovery plan remains on track even though it has revised overall earnings forecasts for 2013 downwards.
In a statement released following a meeting of the company's supervisory board, Areva confirmed its targets for 2012 and 2013, maintaining the financial outlook presented in July 2012 when it had revised its forecasts for the year upwards. Regarding 2013, the group confirmed targets of sales revenue growth in the nuclear business of 3% to 6% and break-even free operating cash flow before tax, despite the faster than expected execution of the group's asset disposal program, the extended schedule for restart of Japanese nuclear reactors and the effect of provisions on reactor projects.
Overall EBITDA (earnings before interest, tax, depreciation and amortization) expectations for 2013 stand at "more than" €1.1 billion ($1.5 billion), which Areva describes as "close" to the previous forecast of €1.25 billion ($1.66 billion).
Areva announced its Action 2016 strategy just over a year ago, aiming to restore the company to its full operating potential following losses stemming from difficulties with new build projects in France and Finland, the downgrading of uranium assets at Trekkopje in Namibia, and a drop in uranium demand and prices after the Fukushima accident. The new strategy emphasises cash generation as a top priority.
CEO Luc Oursel said that the confirmation of break-even operating free cash flow in 2013 was a "clear sign" that the strategy was being successfully implemented. "The company’s overall performance is sharply improving in the five key areas of the strategic plan, beginning with the good progress made on the cost savings plan. The commercial vitality of all our businesses confirms that our growth strategy is on target and our recovery is sustainable over the long term," he said.
Resarched and written
by World Nuclear News