Full Year 2013 Audited Financial Results
06 March 2014
Urenco Group (“Urenco” or “the Group”), an international supplier of uranium enrichment and nuclear fuel cycle services, today announces its results for the full year ending 31 December 2013.
- Revenue at €1,515 million (2012: €1,601 million) which as expected was lower compared to the record year 2012
- EBITDA slightly lower at €968 million (2012: €1,013 million) reflecting lower sales
- Net income of €337 million(2012: €400million)
- Lower capital expenditure of €587 million (2012: €628 million)
- Met 100% of customer delivery requirements
- Global market share maintained at 31%*
- Strong order book in excess of €17 billion extending beyond 2025
- Total capacity up by 4% to17,600 tSW/a.
- Reduced demand and pricing pressures persist but Urenco expects the market will continue to grow in the longer term
- Good visibility of future revenues with long term contracts
- On schedule to achieve capacity target of 18,000 tSW/a by 2015
- Investment in new enrichment capacity focuses on the completion of planned expansion in the USA
- The Tails Management Facility (“TMF”) in the UK is on schedule to start operations in late 2015.
* Based on Urenco internal estimates
Helmut Engelbrecht, Chief Executive Officer of the Urenco Group, said:
“As expected, 2013 remained challenging in some of our traditional markets. Reduced demand led to a slowdown of the market and increased worldwide inventories. Urenco retained its share of the world market for uranium enrichment services, underlining our position as a global market leader. Following our record year in 2012, we met our revenue expectations in 2013.
“I anticipate continued challenges around pricing whilst increased inventories exist. However, I remain confident that the global nuclear industry will continue to grow. In this respect, Urenco continues its investment to ensure that we remain a reliable partner and meet the future needs of our customers. I look forward to further strengthening Urenco’s role and reputation as a global leader in the provision of enrichment and nuclear fuel cycle services.”
||2012 (restated(i)) €m
||Increase / (decrease)
|Income from operating activities
|Add back: depreciation and amortisation
|Add back: share of results of joint venture
(i) The December 2012 results have been restated to adopt the amendments to IAS19 Employee Benefits.
Urenco’s total revenue in 2013 amounted to €1,515 million. The reduction in revenues from the record level of €1,601 million in 2012 reflects the phasing of customer delivery patterns and reduction in demand.
EBITDA was lower at €968 million in 2013(2012: €1,013 million), reflecting lower sales.
Net income totalled €337million in 2013 (2012: €400 million). This decrease was caused by a decrease in sales combined with a higher depreciation charge, partially offset by a lower tax charge and a reduced loss in ETC. The higher depreciation was primarily driven by new capacity coming on line in the USA. The reduction in tax charge predominantly arises as a result of lower profit levels and prior year tax credits.
Operating cash flows before movements in working capital were €1,035 million (2012: €1,086 million), reflecting lower revenues. Cash generated from operations was €880 million (2012: €1,185 million). The main driver for the reduction was an increase in working capital mainly attributable to higher inventories and an increased receivables balance which was a result of the December sales level being higher than the prior year. Net cash flow from operating activities decreased in 2013 to €744 million (2012: €1,003 million), driven by the lower cash generated from operating activities, partially offset by lower tax paid in the period of €136 million (2012: €182 million). In 2013, €270 million in dividends was paid to shareholders (2012: €190 million).
Capital expenditure and capacity expansion
Investment in the long-term development of the business lies at the core of Urenco’s strategy. In 2013, the Group’s capital expenditure was €587million (2012: €628 million).Urenco increased capacity to17,600 tSW/a as at the end of 2013 (2012:16,900 tSW/a). The Group is on track to achieve its capacity target of 18,000 tSW/a by 2015.
One of Urenco’s major investments is the construction of a Tails Management Facility at the UK site. Construction continued throughout 2013 and the project is expected to begin operations in late 2015. This facility will enable the Group to deconvert its by-product, tails, from UF6 to U308 within the Group and will also provide approximately 5,000 tonnes of hydrogen fluoride (HF) for industrial use per year.
Expanding the business
Urenco’s enrichment facility in the USA enables Urenco to provide a domestic enrichment service to its North American customers. Operating in the USA also provides environmental benefits by reducing the number of transatlantic shipments and provides valuable diversity of supply for our customers around the world. Urenco’s New Mexico facility is now the only commercial operational enrichment facility in the USA.
Leading market position
Urenco has a strong order book extending beyond 2025. The order book currently stands in excess of €17 billion (2012: circa €18 billion). In 2013, the Group once again met 100% of customer delivery requirements.
Strong capital structure and funding position
Urenco’s equity increased from €1,890 million to €1,981 million during the reporting period.
Net Debt increased by €106 million to €2,575 million (2012: €2,469million). The Group’s Net Debt to Total Asset ratio remained strong at 41% (2012: 42%), in line with the Group’s target ratio of less than 60%.
Following a €750 million 7-year bond issue in early February 2014, the Group has sufficient committed liquidity to meets its forecast needs beyond 2015.
Long term stability
Urenco’s share of the world enrichment market remained stable in 2013 at 31%*, owing to the Group’s continued good service to its customers. The investments being made by the Group will enable Urenco to continue playing an important role in the global nuclear market.
Urenco’s mission to be the supplier of choice and a key contributor of low carbon energy continues to guide the Group’s strategy. As the global market for nuclear energy evolves, Urenco aims to keep its focus on customers and to be flexible to meet their needs.
While pricing pressures are still ongoing, the Group expects demand to grow in the long term. The strong order book and long-term nature of Urenco’s contracts enables the Group to react to changes in demand patterns. Urenco remains on track to achieve its capacity target of 18,000 tSW/a by 2015.
Urenco is an international supplier of enrichment services and fuel cycle products with its head office based close to London, UK. With plants in Germany, the Netherlands, the UK and the USA, it operates in a pivotal area of the nuclear fuel supply chain which enables the sustainable generation of electricity for consumers around the world.
Using centrifuge technology designed and developed by Urenco, the Urenco Group provides safe, cost effective and reliable uranium enrichment services for power generation within a framework of high environmental, social and corporate responsibility standards.