PARIS–French state-controlled nuclear group Areva reported a 2 billion euro (US$2,2 billion) full-year net loss, blaming half on additional provisions for its Finland reactor project and the rest on restructuring and impairments related to market conditions.
Chief executive Philippe Knoche said on Friday the group was funded for 2016 and a 5 billion euro share issue that the French state, which holds 87% of Areva stock, has said it would support, would be launched by the first quarter of next year.
“The group’s competitiveness plan had a very positive impact on costs and cash, despite the heavy net loss situation which continues and in a market environment that remained difficult in 2015,” Knoche said in a statement on Friday.
Areva, which is selling its reactor arm to state-controlled utility EDF after four years of losses, posted full-year core earnings (EBITDA) of 685 million euros, up from 471 million a year before.
Revenue rose 1,9% like-for-like to 4,2 billion euros and its net loss narrowed to 2,04 billion euros from 4,83 billion.
Analysts polled by Reuters had on average expected a net loss of 690 million euros and EBITDA of 578 million. Areva said net cash flow from operations would be negative in the range of 1,5 billion to 2 billion euros this year, versus a negative 590 million last year, because of what it termed remedial measures, expenses on large projects and an unfavourable change in working capital requirements.
–Nampa–Reuters
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