17 January 2011
URENCO Group – Trading Update
Revenue growth drives strong EBITDA performance and higher net income in 2010
Financial and operating update
In 2010, the URENCO Group (“URENCO”) is anticipated to deliver strong financial performance in line with the company’s expectations.
URENCO’s US enrichment plant commenced commercial operations in June 2010 having received the necessary approvals from the US Nuclear Regulatory Commission. This was a significant achievement and the result of several years of extensive infrastructure and plant investment. Production in the second half of 2010 did not reach planned levels as a consequence of cascade commissioning delays which are now being resolved.
Both revenues and EBITDA are expected to be higher in 2010 than 2009, driven by increased customer deliveries and economies of scale.
Net income for 2010 is forecast to show another solid increase on the previous year. However, higher depreciation charges and finance costs, resulting from significant capital investments over the last few years, have led to a lower net income growth when compared to EBITDA.
URENCO’s continued capacity expansion across its sites in the Netherlands and Germany progressed well throughout 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 13,000 tSW/a.
Expansion of the European and US sites will carry on into 2011 and beyond in order to achieve URENCO’s enrichment production target of 18,000 tSW/a by 2015.
The Tails Management Facility (TMF) planned at URENCO’s UK site continued its design and other pre-construction activities in 2010. This facility, once operational, will process URENCO’s UK inventory of depleted uranium tails, a by-product of the enrichment process.
URENCO’s balance sheet remains strong. URENCO closed a number of successful funding transactions during the course of 2010 totalling €665 million. This included a €500 million 7 year Eurobond issue, a €75 million EMTN issue and a $120 million loan. URENCO holds a single A credit rating with S&P, Moody’s and Fitch.
URENCO will continue to monitor the financial markets and look for new funding opportunities to support planned capacity expansions in 2011 and 2012.
URENCO remains confident in its role as 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 strong growth, providing URENCO with encouraging revenue visibility.
During the course of 2011, URENCO will continue to pursue major investment programmes at its operational sites in the US and across Europe in order to meet the enrichment demands of its international customer base.
URENCO expects revenue and EBITDA to continue to grow during 2011 and its financial position to remain strong.
URENCO will report its financial results for the year ending 31 December 2010 on 7 April 2011.
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Name: Sam Waller
Title: Investor Relations
Direct Tel: +44 (0) 1628 486941
Name: Jayne Hallett
Title: Head of Group Communications
Direct Tel: +44 (0) 1628 486941
The URENCO Group
URENCO is an independent international and technology group with its head office based in Marlow, UK. With plants in Germany, the Netherlands, the UK and in the US, it operates in a pivotal area of the nuclear fuel supply chain which enables the sustainable generation of electricity for consumers around the world.
Utilising centrifuge technology, URENCO provides safe, cost-effective and reliable uranium enrichment services for civil power generation within a framework of high environmental, social and corporate responsibility standards. URENCO continues to build market share in the global enrichment market, with the aim of establishing URENCO as the leading global supplier of enrichment and enrichment technology.