First half 2011 financial results
GROUPE / FINANCE
July 27, 2011
- Backlog of €43.1bn: -€1.1bn compared with December 31, 2010
- Revenue of €3.997bn: -3.9% compared with first half 2010
- Operating income excluding particular items: €62m, for operating margin of 1.6%
- Operating income: €710m
- Net income attributable to owners of the parent: €351m
- Earnings per share: €0.92
- Net debt of €2.772bn: down €900m from December 31, 2010
The Supervisory Board of the AREVA group met today under the chairmanship of Jean-Cyril Spinetta to examine the financial statements submitted by the Executive Board for the period ended June 30, 2011.
Luc Oursel, President and CEO, offered the following comments:
“The first half of 2011 was marked by the accident at the Fukushima power plant following the unprecedented natural disasters that struck Japan.
AREVA drew the first consequences from these events as early as June 2011 and recorded provisions and impairment in its half-year financial statements, related in particular to the expected short-term level of activity of some facilities. Close to 200 million euros in orders were canceled out of a total in backlog of more than 43 billion euros, which was down by a little more than 1 billion euros compared with the end of 2010.
The longer term consequences of these events for AREVA are being assessed. They could concern all operations in the nuclear cycle and will be included in the strategic plan to be prepared by the end of the second half of the year.
The fundamentals underpinning the development of the nuclear market are unchanged: strong growth in demand for electricity in the coming decades, diminished fossil resources, the search by many countries for energy independence, and the growing need to address climate issues. Through its efficient integrated business model, AREVA is present in every segment of the nuclear chain and is positioned in high-tech renewable energies with an offering that is perfectly suited to the requirements of the world’s power companies.
Decisions by governments on energy policy and by the safety authorities in different countries will influence market developments and the schedule for executing certain projects. Germany announced its decision to withdraw permanently from nuclear power and Switzerland intends to do the same, while Italy has opted not to restart its program. And yet the majority of countries have confirmed their decision to pursue nuclear power programs, present and future.In the first half, the group continued to draw down debt, achieving a net debt level of less than 3 billion euros at the end of June, thanks in particular to the conclusion of the proceedings with Siemens and the sale of STMicroelectronics shares. From now to year-end, the group will also continue its commercial efforts, building on its technical expertise and its technologies, while strengthening its programs to reduce costs and control cash generation.”