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Full Year 2014 Audited Financial Results

05 March 2015

Retained market leading position and strong financial standing

Urenco Group (“Urenco” or “the Group”), an international supplier of uranium enrichment and nuclear fuel cycle services, today announces its results for the full year ended 31 December 2014.


  • Revenue of €1,612.0 million was 6.4% higher than in 2013
  • Resulting EBITDA of €1,070.8 million was 10.6% higher than 2013
  • Net income was €404.5 million, 20.2% higher than in 2013
  • Good progress was achieved on Phase III capacity project in the USA
  • The UK Tails Management Facility (TMF) is now planned for commissioning in 2017
  • All customer deliveries were met on time and to a high standard
  • Group enrichment capacity target of 18,000 tSW/a has been reached

Helmut Engelbrecht, Chief Executive of the Urenco Group, commenting on the full year results, said:

“Urenco has achieved a good set of results despite experiencing challenging market conditions which is a credit to the contribution of the Urenco workforce.

“We have achieved our capacity target of 18,000 tSW/a and have focused on consistently demonstrating excellent customer service. This year, as in previous years, we have continued to meet our customers’ needs by providing quality product and on-time delivery.

“There remains uncertainty surrounding reactor restarts in Japan. This increases the worldwide inventories of nuclear fuel, which puts pressure on pricing.

“We will remain flexible in our response to changing market conditions and continue to support our customers in order to retain our position as supplier of choice.”

Financial Performance

  2014 €m 2013 €m Change %
Revenue 1,612.0 1,514.6 6.4
EBITDA 1,070.8 967.9 10.6
Income from operating activities 652.9 558.3 16.9
Net income 404.5 336.6 20.2
Net income margin - % 25.1% 22.2% 2.9pp
Capital expenditure (i) 537.1 586.8 (8.5)
Cash generated from operating activities 979.2 880.0 11.3

(i) Capital expenditure reflects investment in property, plant and equipment plus the prepayments in respect of fixed asset purchases for the period.

Financial Results

Urenco’s total revenue in 2014 was €1,612.0 million, compared to €1,514.6 million in 2013, representing a 6.4% year-on-year increase. This rise is driven by additional SWU deliveries.

EBITDA of €1,070.8 million was 10.6% higher than 2013 (2013: €967.9 million) reflecting higher sales, foreign exchange gains and some operational efficiencies.

Net income increased by 20.2% to €404.5 million (2013: €336.6 million), due to improved results and a reduction in the Group’s effective tax rate.

Net finance costs were €131.7 million (2013: €94.4 million). This increase is mainly a consequence of significant strengthening of the US dollar against the euro.

Cash flow

Operating cash flows before movements in working capital were €1,132.7 million (2013: €1,035.0 million) and cash generated from operating activities was €979.2 million (2013: €880.0 million) as a result of higher revenues.

Net cash flow from operating activities increased in 2014 to €833.5 million (2013: €744.3 million), due to higher revenues partially offset by higher tax paid in the period of €145.7 million (2013: €135.7 million). In 2014, €340 million in dividends was paid to shareholders (2013: €270 million).

Capacity and capital expenditure

The Group invested a total of €537.1 million in 2014 (2013: €586.8 million) which reflects a reduction in investment at our USA enrichment site and a slight reduction in expenditure on our UK TMF site.

Urenco achieved an annual enrichment capacity level of 18,000 tSW/a during the year, ahead of the 2015 target.

Depreciation was €417.9 million in 2014 compared with €396.8 million in 2013. The higher level was due to new capacity coming online in the USA.

In 2014 Urenco completed Phase II of its capacity expansion project at Urenco USA, ahead of schedule and on budget. We are progressing well with the Phase III capacity project in the USA – part of the biggest capital investment in the history of the Group. The first 50% of Phase III capacity is scheduled to be fully operational by the end of 2015, increasing site capacity to 4,700 tSW/a. A slowed installation of the remaining capacity is planned to start in 2016 to reflect the current market conditions, with the total anticipated capacity not being reached until into the next decade.

The TMF is a major commitment and constitutes one of the single largest investments that Urenco has undertaken in the UK. The TMF has incurred cost overruns and delays and the resolution of issues relating to its construction will be a priority in the year ahead. The TMF is now planned for commissioning in 2017.

Capital structure and funding position

Net debt increased to €2,774.0 million (2013: €2,574.6 million). The Group’s net debt to total asset ratio remained strong and, at 38% (2013: 41%), is in line with the Group’s target ratio of less than 60%.

In February 2014, Urenco issued €750 million of 7 year bonds with a 2.5% coupon and maturity date of 2021. At the same time the Group announced a tender offer which resulted in a repurchase of €170 million of the €500 million bonds due in May 2015. In December 2014, Urenco issued €500 million of bonds with a 2.375% coupon and a maturity date of 2024.

During the year Urenco negotiated extensions to €750 million of revolving credit facilities until 2018 and 2019.

In 2014, both Fitch and S&P confirmed their rating for Urenco at A- and BBB+, respectively, and improved the outlook of their ratings from ”negative” to “stable”. Moody’s maintained their Baa1 rating, also with a stable outlook.


In recognition of the increased importance of sustainability in industry, Urenco created a Board level Sustainability Committee. Six focus areas have been introduced and embedded within the company. Safety remains a key priority at Urenco but regrettably there was an increase in the number of Lost Time Incidents (LTIs) to eleven in 2014, compared to one in 2013. We will refocus our attention in this area to ensure we keep the occurrences of LTIs to an absolute minimum.

Leading market position

Urenco continues to have long term visibility of future revenues with an order book which extends beyond 2025. The value of Urenco’s order portfolio on a comparable basis, at 31 December 2014, was €16 billion (2013: circa €17 billion).


Urenco anticipates pricing pressures and the slow market to continue in the near term. The Group recognises that the nuclear industry is a long term business and will continue to provide its customers with the best possible service delivering the highest level of quality and expertise. The nuclear sector is expected to grow in the future and Urenco is well positioned to help customers meet their requirements for a secure supply of enrichment services.


Click here to view the full press release as a PDF.


About Urenco

Urenco is an international supplier of enrichment services and fuel cycle products with sustainability at the core of its business. Operating in a pivotal area of the nuclear fuel supply chain for 50 years, Urenco facilitates zero carbon electricity generation for consumers around the world.

With its head office near London, UK, Urenco’s global presence ensures diversity and security of supply for customers through enrichment facilities in Germany, the Netherlands, the UK and the USA. Using centrifuge technology designed and developed by Urenco, and through the expertise of our people, the Urenco Group provides safe, cost effective and reliable services; operating within a framework of high environmental, social and governance standards, complementing international safeguards.

Urenco is committed to continued investment in the responsible management of nuclear materials; innovation activities with clear sustainability benefits, such as nuclear medicine, industrial efficiency and research; and nurturing the next generation of scientists and engineers.


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