Struggling French nuclear reactor maker Areva on Wednesday reported a 665m euro net loss for 2016, which was an improvement on the previous year but still highlighted the scale of the problems facing the group. The state-controlled company is undergoing a far reaching restructuring in a government-backed deal after losses brought it to the brink of collapse. The company recorded a net loss of 2bn for 2015 and 4.8bn for 2014. The shake-up at Areva is part of a wider upheaval in the global nuclear industry as European, US and Japanese reactor makers struggle with weak order books, strained finances and rising competition from Russian, Chinese and South Korean companies. Areva’s reduced loss for 2016 reflected an improved performance by its reactor business. It swung from an operating loss of 100m in 2015 to a 440m profit last year, partly due to cost-cutting. However, with Areva struggling with construction of a flagship power plant in Finland, it was agreed last year that the reactor business would be taken over by EDF, the French utility, in a deal that values that part of the group at about 2.5bn. This transaction is meant to be completed in the fourth quarter of this year. The rump of Areva will focus on uranium mining and nuclear fuels, and the group is due in June to undertake a 5bn capital increase.
FT 1st March 2017 read more »
DOSSIER – The former flagship of nuclear, now in difficulty, must launch a recapitalization of 5 billion euros. But several clouds threaten the future of the company. Areva takes one step at a time to avoid bankruptcy. The nuclear group has been in deep crisis for more than two years, due to the post-Fukushima slowdown and overcapacity investments, but mainly to the acquisition of the UraMin mining company and the delays accumulated for the EPR under construction. Olkiluoto, Finland. Five-point radiograph of the situation of the ex-flagship of the French nuclear, which has just experienced its sixth consecutive year in loss (665 million euros in 2016).
Les Echos 1st March 2017 read more »