5 Mar (NucNet): French nuclear group Areva posted a six percent drop in full-year net profits for 2009, but said yesterday it expects “significant growth” in revenue and profits this year after the disposal of its transmission and distribution (T&D) business.
Profits were hit by 550 million euro (EUR) (about 747 million US dollars) of charges linked to the construction of the 1,600-megawatt European pressurised water reactor unit at the Olkiluoto nuclear power plant in Finland.
While noting significant progress last year in the physical completion of the Olkiluoto-3 project, Areva said the piping installation at the project was penalised in the fourth quarter “when discussions with the customer particularly on the scope and the implementation of inspection procedures proved necessary”.
Areva said 2009 net income was EUR 552 million, down from EUR 589 million in 2008. A drop in income from associated companies and discontinued operations was offset by improvement in operating income and financial income.
Revenue in 2009 grew 6.4 percent to EUR 14 billion from EUR 13.16 billion a year earlier.
Earnings before interest, tax, depreciation and amortisation, or Ebitda, fell slightly to EUR 584 million on sales of EUR 14 billion. Including the Transmission & Distribution unit that Areva is in the process of selling to Alstom and Schneider Electric, Areva's operating income in 2009 was EUR 501 million.
Areva chief executive officer Anne Lauvergeon said proceeds from the T&D sale would reduce Areva’s net debt from EUR 6.193 billion to EUR 3.022 billion this year.
She said the exit of Siemens from the Areva NP joint venture had allowed a simplification of Areva's organisation that was already generating savings.
Areva and Siemens are waiting for the results of an arbitration to determine the valuation of Siemens’ 34 percent stake in Areva NP, but underlined the amicable nature of the companies’ relationship.
>>Related reports in the NucNet database (available to subscribers)
Areva-Siemens Files Arbitration Request Over Olkiluoto-3 Delays (News No. 103, 31 December 2008)
Areva Rejects ‘Inaccurate’ Reports And Says Work Continues On Finnish Unit (News No. 39, 13 May 2009)
Areva And TVO Exchanges Put Olkiluoto-3 Progress In Spotlight (News in Brief No. 114, 2 February 2009)
