AREVA's revenue at 09.30.2014
Group / Finance
October 31, 2014
At September 30, 2014:
- Backlog of €46.1bn for a year-on-year increase
- Revenue down to €5.558bn: -14.3% vs. September 2013 (-12.9% like for like)
- Revenue and EBITDA outlook confirmed for 2014
- Level of free operating cash flow before tax for 2014, targeted close to breakeven, remaining dependent on the pace of certain customer payments expected before year end
Regarding the group’s performance in the first nine months of 2014, Pierre Aubouin, Chief Financial Executive Officer, said:
“Revenue in the first nine months of the year fell 12.9% like for like, along the same lines of the first six months. This decline is explained by the absence of non-recurring items from 2013 in the Mining and Back End Business Groups and by the deteriorated market situation in 2014. At 46.1 billion euros, the backlog is rising for AREVA’s nuclear operations, led by the agreement signed in the first half with EDF in used fuel treatment and MOX production, and by several contracts signed in Fuel. We thus still have substantial visibility for AREVA's recurring operations over the coming years. The strategic partnership with EDF continues to strengthen, as shown by the agreement signed recently to supply fuel to the French nuclear reactor fleet from 2015 to 2021, which has not yet been recorded in backlog. We are expecting stronger activity in the 4th quarter, particularly in the Mining BG, and thus confirm the revenue and EBITDA outlook for the full year. The level of free operating cash flow before tax, targeted close to breakeven, remains dependent on the pace of certain customer payments expected before year end.”
1 Includes “Consulting and Information Systems” and “Engineering & Projects“ businesses.
2 Nuclear operations: operations in the Mining, Front End, Reactors & Services and Back End Business Groups and in Engineering & Projects (recognized under Corporate & Other)
It should be noted that revenue may vary significantly from one quarter to the next in the nuclear operations. Accordingly, quarterly data should not be viewed as a reliable indicator of annual trends.
Over the first nine months of 2014, AREVA generated consolidated revenue of 5.558 billion euros, a decrease of 14.3% (-12.9% like for like) compared to the same period in 2013.
In the nuclear operations, revenue totaled 5.453 billion euros over the first 9 months of 2014, versus 6.330 billion euros for the first 9 months of 2013, a 13.9% decrease (-13.1% like for like). Revenue in the Front End BG rose 13.2% (+13.8% like for like). Revenue in the Mining, Reactors & Services and Back End BGs declined 44.8% (-43.5% like for like), 7.7% (-6.5% like for like) and 24.0% (-24.3% like for like) respectively.
Foreign exchange had a negative impact of 54 million euros over the period, while consolidation scope had a negative impact of 46 million euros.
Third quarter 2014 revenue came to 1.669 billion euros, a 15.3% decrease (-14.1% like for like) compared to the third quarter of 2013. Consolidation scope had a negative impact of 28 million euros over the period, while foreign exchange had practically no impact.
Revenue in the nuclear operations amounted to 1.655 billion euros in the 3rd quarter of 2014, a drop of 14.2% compared to the 3rd quarter of 2013 (-14.3% like for like).
Over the first 9 months of 2014, revenue in France came to 2.645 billion euros, a 3.2% decrease compared to the first 9 months of 2013. Over the same period, revenue from international operations totaled 2.913 billion euros, a drop of 22.3% compared to the first 9 months of 2013.
At September 30, 2014, the group’s backlog was 46.076 billion euros, an increase of 11.4% compared to September 30, 2013 (41.365 billion euros). This is a record level for the nuclear operations since the group's creation. It should be noted that the backlog does not include all of the umbrella agreement signed with EDF, announced on October 2, 2014, for the supply of design and fuel fabrication services for the French nuclear reactors from 2015 to 2021. It should also be noted that it does not include the amount of agreements signed with EDF in October 2013 for the EPR reactors project at Hinkley Point in the United Kingdom and for the related fuel.