URENCO Group – Half-Year 2009 Unaudited Financial Results
26 August 2009
Net income and EBITDA up; good progress on capacity expansion
Financial highlights
| |
Six months to 30 June 2009 (unaudited) €m |
Six months to 30 June 2008(restated1) €m |
% change 2009/2008 |
| Revenue |
438 |
478 |
-8% |
| Earnings before interest, tax, depreciation and amortisation |
243 |
238 |
+2% |
| Income from operating activities |
164 |
147 |
+12% |
| Net income |
110 |
97 |
+13% |
| Capital expenditure |
357 |
361 |
-1% |
| Net cash flow from operating activities |
227 |
188 |
+21% |
|
|
|
|
|
[1] The June 2008 results have been restated for capitalised interest as required by the International Accounting Standard 23.
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Strong business performance
URENCO delivered another strong business performance in the first six months of 2009. EBITDA, after National Enrichment Facility start-up costs, rose 2% from a year earlier. Although volumes of Separative Work Unit (SWU) deliveries were higher during the first half of the year (+5%), revenue was lower due to the impact of foreign exchange movements on the hedged SWU sales price, which according to our five year rolling hedging policy naturally lags behind the actual exchange rate, and lower volume of feed deliveries. Average production costs fell by around 8% compared with the first half of 2008. Despite lower revenue, net income rose 13% due to the reduced average production costs, a lower depreciation charge and reduced net finance costs.
The reported first half results include pre-tax non-capitalised start-up costs of €26 million (2008: €25 million) relating to the National Enrichment Facility in New Mexico, US.·
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Delivery of capacity expansion projects in support of €18.5 billion forward order book
Capacity expansion continued in the first six months of 2009 with an additional 300tSW of production capacity brought on line at our sites in Germany and the Netherlands. Construction work continues to progress in the US and the National Enrichment Facility, our fourth enrichment site, is anticipated to be ready for operations by the end of the year.
Investments in new capacity in Europe and at the National Enrichment Facility totalled €357 million in the first half of the year (2008: €361 million), supported by our strong forward order book of more than €18.5 billion, which extends beyond 2025.
URENCO’s liquidity position remains strong with significant forward cover from its committed funding facilities to well into 2010, with a $150 million US private placement concluded during the period. The funds will be used to finance URENCO’s ongoing expansion programme and to refinance some existing debt on maturity.
Net cash flow from operating activities was up on the first half of 2008, resulting from lower working capital requirements.
Outlook
URENCO will continue to make significant investments in the second half of 2009 as the group builds additional enrichment capacity to support long-term demand from its customers. The National Enrichment Facility is progressing well and is expected to be ready for operations by the end of the year. Continued strong performance from URENCO’s existing operations is expected during the remainder of the year.
Helmut Engelbrecht, Chief Executive of the URENCO Group, commenting on the half-year results said:
“URENCO’s operations delivered another strong performance in the first half of 2009. Net income and EBITDA both increased compared to the same period a year earlier, and good progress was achieved across all of our capacity expansion projects.
URENCO’s goal is to continue to build market share, with the aim of establishing URENCO as the leading global supplier of enrichment services to nuclear utilities all over the world. We look forward to the opening of the National Enrichment Facility in New Mexico, which we anticipate to be ready for operations by the end of the year. The opening of the plant will represent a significant milestone for URENCO and on behalf of the Board I would like to thank our employees for their ongoing effort and dedication in delivering on our expansion projects in both Europe and the US.
Our forward order book remains strong, and we expect 2009 to be another successful year for the Group.”
Contact:
Investor contact:
Navreet Doad
Tel:+44 (0) 1628 402279
Email:nkd@urenco.com
Media contacts:
Jayne Hallett
Head of Group Communications
Tel:+44 (0) 1628 402297
Email: jayne.hallett@urenco.com
Howard Lee or Dudley White
Headland Consultancy
Tel:+44 (0) 207 367 5225 or 5226
Email: :hlee@headlandconsultancy.co.uk or dwhite@headlandconsultancy.co.uk
Click here to read and download the interim financial results statement
Click here to read and download the full interim financial accounts