Russia's Atomproekt records revenue shortfall in first accounts
06 July 2015
Russia's reactor design subsidiary Atomproekt has reported lower earnings and net profit than expected in its first year of operations following consolidation with other Rosatom subsidiaries.
Its 2014 annual report issued last week showed that the company's revenue stood at RUB20.954 billion ($371 million), which was up from RUB16.29 billion ($289 million) in 2013, but less than the RUB24.638 billion ($436 million) it had expected to earn last year. Net profit last year was RUB2.275 billion ($40.3 million), which was down from RUB3.163 billion ($56 million) in 2013.
The company stressed, however, that comparisons of yearly accounting periods were complex, in view of the consolidation process, and did not necessarily indicate its potential future performance.
Atomproekt was formed in July 2014 when Atomenergoprom - Rosatom's holding company responsible for Russia's civil nuclear assets - merged two of its Saint Petersburg subsidiaries, the All-Russia Science Research and Design Institute of Power Engineering Technology (VNIPIET) and Saint Petersburg Atomenergoproekt (SPbAEP).
Atomproekt said its results had been negatively impacted by a decrease in Russian electricity demand and postponement of some of Rosatom's reactor construction projects. Political, economic, technical and 'social' factors had also played a part, it said. Political factors included USA and European Union-imposed sanctions, while economic factors included a weakening in the value of the rouble and a fall in world oil prices. Technological factors included "restricted access to equipment and technology" owing to the sanctions and an increase in nuclear power plant safety requirements. Social factors included a lack of "blue-collar" and engineering personnel in Russia and elsewhere, and a "negative attitude towards Russia and Russian technologies in EU countries and the USA in the midst of the Ukrainian crisis," it said.
Highlights last year included the signing of a contract to develop design documents for the Hanhikivi-1 and Paks-2 nuclear power plant construction projects in Finland and Hungary, respectively. The company was also awarded the role of general design contractor for unit 2 of the Leningrad II nuclear power plant project.
Other key developments noted were regulatory support for Rosatom's Proryv project and the MFRR (Multipurpose Fast Research Reactor) facility. The Proryv, or 'Breakthrough', project aims to develop fast reactors with a closed fuel cycle whose mixed-oxide (MOX) fuel will be reprocessed and recycled. The ultimate aim is to eliminate production of radioactive waste from nuclear power generation. Russian regulator Rostechnadzor last October issued Atomproekt with a licence to use the MSC Nastran and Patran software systems to test the structural strength of nuclear islands, the first time for this system in Russia.
In addition, as Russia's sole design company for used nuclear fuel storage facilities, Atomproekt has entered foreign markets, notably for the construction of a used fuel dry cask storage facility in China.
Kirill Komarov, general director of Atomenergoprom and deputy director general of Rosatom, said in a note on the results statement that Atomproekt had produced engineering design documents for six nuclear power units under construction in Russia and abroad, and developed the design documents required for licensing three commercial power units. The company had thus "fully met" its obligations under government contracts, he said.
Atomproekt noted that Rosatom worked on 30 nuclear power plant reactor design projects last year, which it said was a 41% global market share. Atomproekt accounted for 16% of that 41%. USA-headquartered Westinghouse was the second-biggest, with 17 reactors (23%), while Korea Hydro & Nuclear Power was third with 12 reactors (16%). They were followed by Areva (7%), Mitsubishi (6%), GE Hitachi (3%), Hitachi (3%) and Toshiba (1%).
Researched and written
by World Nuclear News