Mining bolsters Areva's 2013 revenues

31 January 2014

Despite a drop in its order backlog, a strong performance by Areva's mining business helped the company report a 3.8% increase in revenues to €9.3 billion ($12.6 billion) in 2013.

Revenue from its nuclear operations was €9.0 billion ($12.2 billion), up 7.1% from the previous year. A strong performance by Areva's mining and front-end operations "offset the expected business downturn in the reactors and services business groups."

For 2013, Areva's mining division posted revenue of €1.8 billion ($2.4 billion), an increase of 29.1%. The company said this reflects the planned reduction of its inventories, "despite a slight decrease in production and lower average sales prices of uranium sold under contracts over the period, reflecting the current unfavourable natural uranium market conditions."

Areva's front-end group - covering uranium enrichment and fuel fabrication - reported a 6.8% rise in revenue in 2013 to €2.2 billion ($3.0 billion). Its back-end business group brought in revenue of €1.7 billion ($2.3 billion), around the same level as in 2012. Meanwhile, the reactors and services business saw revenue decrease 3.7% in 2013 to €3.3 billion ($4.5 billion).

While far smaller than its nuclear businesses, revenues from Areva's renewables division fell 24.7% to €132 million ($178 million).

Meanwhile, Areva's overall order book of €41.6 billion ($56.2 billion) at the end of 2013 was slightly down from a year ago, when it stood at €44.7 billion ($60.4 billion). Some €7.6 billion ($10.3 billion) of new orders were received last year, excluding orders associated with agreements reached in October with EDF for the EPR reactors planned for Hinkley Point C.

Areva CEO Luc Oursel commented, "Two years after Fukushima, Areva's level of activity was especially strong in 2013. We outperformed our revenue outlook for nuclear operations." He added, "The group's revenue benefited from the robustness of the recurring activities and from temporary elements, such as exceptionally high uranium sales."

"This growth demonstrates the resilience of our end market, despite unfavourable current conditions," he noted.

Researched and written
by World Nuclear News

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