Areva Loses $2.2 Billion in 2015, Says Turnaround is on Track

 Areva Loses $2.2 Billion in 2015, Says Turnaround is on Track

Areva posted a loss of €2.04 billion ($2.23 billion) in 2015, but the company says it is well on the road to a turnaround.
 
The company’s 2015 annual results state that as part of its recovery, it plans to sell its radiation monitoring company Canberra and reactor and propulsion business Areva TA. In addition, Areva and Finland-based TVO started talks aimed at completing construction of the Olkiluoto 3 nuclear project in Finland, and to settle the legal disputes over who is responsible for construction cost overruns. Areva also called for a capital increase of €5 billion ($5.46 billion) and the convergence between EDF and Areva on the valuation of Areva NP, excluding the Olkiluoto 3 project. There is also a plan to create a New Areva group in 2016 that brings together all fuel cycle operations.
 
“Half of this loss of 2 billion euros is due to additional provisions for OL3 and half to provisions for restructuring and impairment related to market conditions,” said CEO Philippe Knoche. “Concerning the group’s liquidity, 2016 is funded and the capital increase which will be launched in the coming months will enable us to gradually regain the group’s positive profile.”
 
Areva agreed with a banking pool on a €1.1 billion bridge loan ($1.2 billion) that will help ensure the company’s liquidity for 2016.
 
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