News
Urenco Group – Trading Update for 2013
22 January 2014
Urenco Group, an international supplier of uranium enrichment services, today announces a trading update for the year ending 31 December 2013.
Highlights
- As anticipated, there was a substantial rebalancing of revenue in the second half of the year. Full year revenue is expected to be down around 5% on record levels in 2012
- The enrichment market is facing short-term pricing challenges although Urenco expects stabilisation in the longer term
- The Group continues to benefit from a strong order book extending beyond 2025
- The Group increased its global enrichment capacity in line with its target of 18,000 tSW/a by 2015
- Capital investment is expected to be in line with plan and close to 2012 levels
- The Tails Management Facility (“TMF”) in the UK is on schedule to start operations in late 2015
- Progress continues at the Group’s US enrichment facility on both Phase Two capacity expansion and Phase Three construction.
Update
As anticipated, there has been a substantial rebalancing of revenue in the second half of 2013, with phasing of deliveries weighted towards the second half of the year. Following a record year of deliveries in 2012, Urenco expects a reduction in revenue of approximately 5% year-on-year for 2013.
The global nuclear industry continued to evolve throughout the year. Uncertainty of demand led to a slowdown of the enrichment market, resulting in increased inventories worldwide and short-term downward pricing pressure. Urenco anticipates market stabilisation in the nuclear industry over the longer term and remains confident of continuing to play a vital role in the international market and supply chain.
In 2013, the Group further increased enrichment capacity in the United States by continuing Phase Two capacity expansion and construction of Phase Three at its New Mexico facility. As the world’s largest producer of nuclear energy, the USA continues to be a key market for the Group. Urenco’s New Mexico facility, the only commercial operational enrichment facility in the USA, enables Urenco to better serve its customers in this market.
Urenco is on schedule to start operations at its TMF in late 2015. This facility will enable Urenco to deconvert tails by-product from UF6 to U308 without relying on third party services. This will reduce the quantity of tails stored on site and approximately 5,000 tonnes of hydrogen fluoride (HF) will be recycled each year for industrial use.
Urenco will report its financial results for the year ending 31 December 2013 on 6 March 2014.
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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