Half Year 2013 Unaudited Financial Results

URENCO Group Half Year 2013 Unaudited Financial Results


Half year results in line with expectations

  • Phasing of customer deliveries during the period has impacted comparative half year performance; however company expects full year results to be in line with expectations
  • Lower comparative revenue and EBITDA
  • Continued capacity expansion in USA on schedule and on budget
  • Group capacity increased by 500 tSW/a in the period to more than 17,400 tSW/a
  • Tails Management Facility (TMF) construction progresses on schedule and on budget

Six months to 30 June 2013



Six months to 30 June 2012




% change










EBITDA margin - %




Income from operating activities




Net income




Net income margin - %








Capital expenditure**




Cash generated from operating activities




*   The June 2012 results have been restated to adopt the amendments to IAS19 Employee Benefits.

**  Capital expenditure reflects investment in property, plant and equipment plus the prepayments in respect of fixed asset purchases for the period.

Financial results

Revenue for the six months to 30 June 2013 was €384 million. The reduction of 45% on H1 2012 is a consequence of the significantly higher level of deliveries during 2012. Phasing of customer deliveries led to lower deliveries of enrichment services in H1 2013 resulting in reduced revenues. It is anticipated that there will be a substantial rebalance during the second half of the year the company remains on target to achieve full year expectations.

EBITDA for H1 decreased by 31% to €319 million as compared to the comparative period for the six months to 30 June 2012 (2012: €461 million) mainly as a result of lower revenues. EBITDA margin at 83% was higher than H1 2012. It is anticipated that the EBITDA margin will be more in line with normal levels for the full year.

Net income for the six months to 30 June 2013 was €43 million (2012: €202 million) mainly as a result of lower EBITDA recognised in the period. New production capacity added in the USA contributed to a 23% increase in the depreciation charge. The tax charge in H1 2013 was €19 million (2012: €54 million) predominantly as a result of decreased income before tax.

The Group invested €308 million (2012: €295 million) in new enrichment capacity and the TMF.  Capacity expansion at URENCO USA continued on schedule and within budget. Preliminary site work has commenced on the next phase of USA capacity expansion. 

Cash generated from operating activities was €302 million (2012: €434 million). The decrease of 30% was mainly due to lower revenues. Tax paid in the period was €80 million (2012: €74 million); net cash flow from operating activities was €222 million, a 38% decrease on 2012.

• Increased production capacity since December 2012
URENCO continued capacity expansion at its USA facility during H1 2013. This added 500 tSW/a of capacity, bringing the Group’s total amount to more than 17,400 tSW/a. The Group expects further capacity expansion in H2 at UUSA.

URENCO remains on track to achieve its target of 18,000 tSW/a by 2015 at which point URENCO will complete its current investment cycle. Taking this into account and the stabilisation of global demand for enrichment services, Enrichment Technology Company Ltd (a joint venture company owned in equal share by URENCO and Areva), is continuing to develop a restructuring plan to reduce its manufacturing capacity of centrifuges while ensuring skills and expertise are maintained.

• Tails Management Facility (TMF) construction
Construction progresses on schedule and on budget. The TMF is being built at URENCO’s UK site with operations due to commence towards the end of 2015.

The TMF is an important project for URENCO, providing greater control over the cost of managing its tails (a by-product of the enrichment process).

The TMF will comprise a tails deconversion unit and a number of associated storage, maintenance and residue processing facilities.  This supports URENCO’s long-term strategy for responsible uranium stewardship and the management of tails pending future re-use. The TMF will also recycle approximately 5,000 tonnes per year of hydrogen fluoride (HF) for industrial use.

• Funding position
URENCO continues to maintain a solid funding position. On the basis of forecast cash flows including capital expenditure, the Group has sufficient committed funding to meet its requirements into 2015.

• Order Book remains strong
Continuing visibility of future revenue is underpinned by URENCO’s Order Book with long-term visibility beyond 2025. The Order Book currently stands at circa €18 billion. URENCO continues to be a leading provider of enrichment services to the global nuclear power industry, maintaining a market share of 31%. 


URENCO continues to focus on customer delivery and maintaining high standards of customer satisfaction. URENCO experienced greater market activity in the international nuclear fuel market in H1 2013, resulting in an increased amount of agreed business for global enrichment services in the longer term. Revenues in H2 2013 are anticipated to be higher compared to H2 2012.

Helmut Engelbrecht, Chief Executive of the URENCO Group, commenting on the half-year results, said:

“URENCO continues to deliver strong operational performance by meeting our H1 expectations and we remain confident in achieving our full year targets.  I am particularly proud of the continued excellence in customer service and ongoing cost efficiencies delivered across the Group.

A stabilisation of the world nuclear market has been apparent over the current period. We have experienced increased procurement activity from our customers in H1 2013 and we remain confident in the long-term future of the nuclear sector as an essential part of the global energy mix. We continue to seek opportunities and identify areas of growth in new markets. The nuclear sector has an important role to play in meeting the world’s energy needs and we are proud to be an active part of it.”

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Editors note:


Name: Charles Stewart
Title: Investor Relations
Direct Tel: +44 (0) 1753 660 660
Email: charles.stewart@URENCO.com

Name: Jayne Hallett
Title: Corporate Communications
Direct Tel: +44 (0) 1753 660 660
Email: jayne.hallett@URENCO.com

Name: Andrew Mitchell / Carole Cable
Title: Brunswick Group
Direct Tel: +44 (0) 20 7404 5959
Email: URENCO@brunswickgroup.com