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Half Year 2014 Unaudited Financial Results

03 September 2014

Urenco Group (“Urenco” or “the Group”), an international supplier of uranium enrichment and nuclear fuel cycle services, today announces its results for the half year ending 30 June 2014.


  • Revenues for H1 at €524 million in line with management expectations
  • €750 million 7-year bond issue in February 2014
  • Phase two of the Group’s US enrichment facility is complete and Phase three construction continues on target
  • Annual enrichment capacity reaches target of 18,000 tSW/a
  • Tails Management Facility (TMF) in the UK is delayed and now due to commence commercial operations in 2017
  • The enrichment market is currently facing pricing pressures although this is mitigated by the strong order book which stands at €16 billion

Financial highlights

  Six months to 30 June 2014 (unaudited) €m Six months to 30 June 2013 (unaudited) €m
Revenue 524 384
EBITDA 380 319
EBITDA margin - % 73% 83%
Income from operating activities 181 125
Net income 106 43
Net income margin - % 20% 11%
Capital expenditure (i) 236 308
Cash generated from operating activities 399 302

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

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

“During the first half of 2014 Urenco has continued to focus on delivering excellence in customer service. Our speed of response to customer requirements continues to enhance the long term nature of our customer relationships. We remain dedicated to serving the nuclear industry as a reliable and long-term partner.

“Alongside other major organisations in the nuclear sector we continue to experience challenging market conditions. The impact from the uncertainty surrounding the timing of reactor re-starts in Japan has reduced demand for nuclear fuel, increased worldwide inventories and has led to a slowdown of growth in the global enrichment market.

“Throughout we continue to deliver value to our shareholders and the Directors have recommended a final dividend of €340 million for 2013 payable in 2014.

“We are confident that the global nuclear industry will continue to grow over the next 25 years and Urenco will remain a trusted partner to its worldwide customers.”

Financial Results

Revenue for the six months to 30 June 2014 was €524 million (H1 2013: €384 million). The increase of 36% on the first half 2013 is attributable to the phasing of annual customer deliveries which were significantly higher in the first half of 2014 compared to 2013 first half. EBITDA for H1 2014 increased by 19% to €380 million as compared to the first six months of 2013 (H1 2013: €319 million) mainly due to higher revenues. Net income for the six months to 30 June 2014 was €106 million, compared to €43 million in H1 2013, with higher revenues.

The Group invested €236 million (H1 2013: €308 million) mainly in new enrichment facilities in the USA and the Tails Management Facility (TMF) in the UK. The TMF has experienced some construction delays and the commencement of commercial operations is now expected in 2017, the cost implications of which are currently being investigated.

The Group achieved its annual enrichment capacity level of 18,000 tSW/a ahead of the 2015 target.

Inventories increased in the six months to 30 June 2014 by €111 million (30 June 2014: €464 million; 31 December 2013: €353 million) primarily due to production across the Group remaining constant in an environment of reduced demand.

Cash generated from operating activities was €399 million (2013: €302 million). This increase was mainly due to the higher level of sales in the period and a positive movement in working capital.

Tax paid in the period was €59 million (H1 2013: €80 million). Net cash flow from operating activities was €340 million (H1 2013: €222 million), a 53% increase on 2013.

The tax charge in H1 2014 was €21 million (H1 2013: €19 million charge) as a consequence of higher profits subjected to a lower effective tax rate of 16% (30 June 2013: 30%).

Net finance costs for H1 2014 were €54 million, compared to €63 million in H1 2013.

The final dividend for the year ended 31 December 2013 as approved in March 2014 was €340 million, €170 million (50%) of which was paid in April and with the remaining amount due to be paid to shareholders in October 2014.


Urenco raised €750 million via a 7-year bond issue with a coupon of 2.5% which will mature in 2021. The Group also renewed €750 million of revolving credit facilities with its banks with a maturity of 2018 and 2019.

Sector leader

The long term nature of the nuclear industry enables Urenco to have good visibility of contracted demand for enrichment services. Currently, Urenco’s customer commitments extend beyond 2025. The total order book stands at €16 billion**. Urenco continues to be a leading provider of enrichment services to the nuclear power industry with a global market share of around 30%*.

*Based on Urenco internal estimates.
** Based on €/$ 1.4


Following the increased revenue level in H1 2014, revenues in H2 2014 are expected to be lower than H2 2013 reflecting the phasing of customer delivery patterns.

Continued pricing pressures are anticipated, alongside a relative slowdown of the nuclear market and increased worldwide inventories in the coming years. However, the nuclear industry is a long term business and it is vital to take a long term view so customers know they can rely on Urenco as a provider. Nuclear generation is predicted to grow over the next 25 years and remains an essential element in a balanced energy mix that is required to meet the world’s growing energy needs.


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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