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Full Year 2010 Audited Financial Results

07 April 2011

Revenue growth drives strong EBITDA performance and higher net income in 2010


  • Higher customer deliveries from expanded capacity drives revenue growth of 13%
  • Strong increase in EBITDA and net income
  • Urenco’s global reach extended by the first commercial operations in 2010 at its US facility
  • Long-term order book at €21 billion which underpins capacity growth
  • Enrichment capacity now exceeds 13,000 tSW/a


  2010 €m 2009 €m % Increase/
Revenue 1,267.2 1,121.0 13%
EBITDA 813.6 669.7 21%
Income from operating activities 590.9 500.4 18%
Net Income 387.1 342.8 13%
Capital Expenditure 703.4 843.0 (17)%
Cash generated from operations (before interest & tax) 831.6 656.4 27%

Revenue growth drives strong increase in EBITDA and net income

Revenue for 2010 was €1,267.2 million, a 13% increase on 2009 (€1,121.0 million). This was driven by the increase in product deliveries to our customers, which grew by 14% compared to 2009, from Urenco’s expanded capacity. In line with the Group’s hedging policy, the majority of the US dollar income was hedged against the euro, reducing foreign exchange volatility from our revenue.

EBITDA increased by 21% to €813.6 million (2009: €669.7 million), which was mainly the result of higher revenue, production cost savings driven by economies of scale and foreign exchange translation gains. In addition start-up costs at UUSA were lower following the commencement of operations in the middle of 2010 (2010: €34.0 million; 2009: €75.9 million). This was offset by an increase in sterling operational costs when expressed in euros.

Net income grew by 13% during the period (2010: €387.1 million; 2009 €342.8 million). This is lower than the growth in EBITDA as a result of higher depreciation charges and increased net finance costs, driven by the significant investment in the expansion programme.

The Group continued to invest heavily in capital expenditure in 2010 spending €703.4 million (2009: €843.0 million) demonstrating the ongoing capacity expansion across Europe and significant infrastructure and plant investment associated with the start-up of Urenco’s new facility in the US.

Strong operating cash flow

Internal cash generation from operations showed a significant improvement to €831.6 million (2009: €656.4 million), a 27% increase. The major drivers of the increase include higher EBITDA as indicated above and lower cash spend on tails deconversion, offset in part by higher working capital requirements at year end due to the Group’s delivery profile.

Market position and order book

Urenco maintained its role as a leading supplier of enriched uranium to the worldwide nuclear power industry with a global market share of 27% [1]. Demand for services increased in 2010 and the order book grew by 8% in 2010 to over €21 billion (2009: €19.5 billion) and extends beyond 2025, providing the Group with strong long-term revenue, earnings and cashflow visibility. This underpins the “growth through investment” plans across the Group.

[1] Based on Urenco internal estimates.

Capital investments and capacity expansion programmes: operations at the US facility commenced in June 2010

Urenco’s continued capacity expansion across its sites in the Netherlands and Germany progressed well in 2010, along with the start-up of the new US facility, with a total of approximately 800 tSW (6% growth) added by year-end, bringing total capacity to over 13,000 tSW/a.

Expansion of the European and US sites will continue into 2011. Some commissioning delays were experienced in the US which limited available capacity. However, issues related to commissioning delays are being resolved.

Investment funding and credit rating

With strong internal cash flow generation, along with increased committed facilities raised through the successful bond issue and additional debt finance, raising the equivalent of €665 million in new funds. Urenco has a solid funding position for future investments, strengthening the Group’s maturity profile. On the basis of currently anticipated capital expenditure, the Group has sufficient facilities in place through to the second half of 2012.

Urenco aims to maintain its single ‘A’ credit rating based on a solid financial performance and a strong out look based on a long-term order book.

Continued focus on safe, reliable, high quality operations and reducing our impact on the environment

Urenco is committed to operate to the highest standards of safety, environmental and security requirements and its operations are governed by strict regulatory regimes which provide high levels of safety for our workers, the environment and the general public. In 2010, the Group continued to focus on improving safety across its activities by setting ambitious safety targets, and ensuring that they are supported by management action and training.


It is too early to speculate on the exact impact the events at the Fukushima nuclear power plant will have on the global nuclear industry. As a global supplier to the industry, Urenco is closely monitoring the developing situation to assess the potential implications for the business.

The Group is expected to continue to deliver strong business and financial results. Urenco remains confident in its role as the preferred long-term supplier to the world’s nuclear utilities, with a forward order book in excess of €21 billion extending beyond 2025. Demand for Urenco’s enrichment services continues to exhibit further growth, as illustrated by the Group’s order book, providing encouraging revenue visibility.

Helmut Engelbrecht, Chief Executive Officer of the Urenco Group commenting on the 2010 results said:

“Urenco has been deeply saddened by the events in Japan. Messages of sympathy and support have been extended to our customers and industry colleagues. Urenco will support the nuclear industry in its challenge to develop improved design measures in order to achieve maximum future safety.

During 2010, Urenco increased customer deliveries. Solid operational performance resulted in strong revenue, EBITDA and net income growth. The success of our strategy of “growth through investment” was illustrated by the start up of our US enrichment facility in mid- 2010.

Our focus remains on delivering to our customers from the strong order book that we have developed with them.”


About Urenco

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.


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