URENCO Group – half-year 2008 unaudited financial results
27 August 2008
Financial Highlights
|
|
Six months to
30 June 2008
(unaudited)
€m
|
Six months to
30 June 2007
(unaudited)
€m |
% change
2008/2007 |
|
Turnover
|
478
|
406 |
+18% |
Earnings before interest, tax,
depreciation and amortisation
|
237
|
217 |
+9% |
|
Profit before tax and net finance costs
|
147
|
129 |
+14% |
|
Profit after tax
|
87
|
76 |
+14% |
|
|
|
|
|
|
Capital Expenditure
|
361
|
200 |
|
|
Net cash flow from operating activities
|
189
|
203 |
|
|
|
|
|
|
-
Continued growth in revenues and profits
URENCO delivered another period of strong growth in the first six months of 2008. Compared with the same period in 2007, turnover was up by 18%, EBITDA by over 9%, and net profits by around 14%. Net cash flow from operating activities was slightly down on the first half of 2007, resulting from increased working capital requirements. The growth seen in the first half of the year reflects a strong underlying performance from URENCO’s enrichment operations, where average production costs per SWU fell by over 10% compared with the first six months of 2007.
The reported first half results include pre-tax non-capitalised start-up costs of €25 million (2007: €22 million) relating to the National Enrichment Facility (the NEF) in New Mexico, US.
-
Delivery of capacity expansion projects in support of forward order book of over €18.5 billion
Capacity expansion continued in the first six months of 2008 with an additional 600tSW of production capacity brought on line at the Capenhurst and Gronau sites. Construction work progressed well at the NEF and first production remains scheduled for 2009. Investments in capacity expansion in Europe and at the NEF totalled €361 million in the first half of the year, compared with just over €200 million in the first half of 2007. The capacity expansion programme supports URENCO’s strong forward order book of over €18.5 billion, which extends beyond 2030. At constant foreign exchange rates (i.e. ignoring the effect of the weaker dollar), the order book grew by around 8% compared with the 2007 year-end (€18 billion).
-
Successful funding activities improve liquidity
In support of URENCO’s ongoing programme of investments in new capacity, two major new sources of additional debt finance were successfully obtained in the first half of the year, raising the equivalent of over €600 million in new funds and significantly strengthening the group’s liquidity position:
- a thirty year private placement loan with an international life insurance company announced at the 2007 year-end, raising approximately €125 million in new funds;
- €500 million 7-year Eurobond, listed on the London Stock Exchange, issued in May 2008.
The fact that both of these transactions took place against a background of major turbulence in the capital markets is a clear demonstration of URENCO’s strong credit position.
Helmut Engelbrecht, Chief Executive of the URENCO Group, commenting on the half-year results said:
“URENCO’s operations have in the first six months delivered another strong performance, with revenues, EBITDA and net profit all up significantly on comparable period last year. In addition, the Group’s financial position has been considerably strengthened through the successful funding activities undertaken in the first half of this year.
Good progress has been achieved on all of our capacity expansion projects, thanks to the continued efforts and dedication of our employees in Europe and the US.
We expect that results for the full-year will continue to be strong, with further growth in turnover and profits.”
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