Weapons Complex Monitor Vol. 29 No. 9
Visit Archives | Return to Issue
PDF
Morning Briefing
Article of 11
March 17, 2014

ENERGYSOLUTIONS ASSURES CUSTOMERS IT’S ON COURSE DESPITE CEO, CFO SHAKEUP AND CHANGE IN BUSINESS STRATEGY

By ExchangeMonitor
EnergySolutions “is not going to go away,” Alan Parker, president of EnergySolutions’ government group, told a crowd of radioactive waste professionals at the Sixth Annual RadWaste Summit in Las Vegas this week. “We are staying the course, and we know where we’re going,” Parker said, addressing the company’s recent top-tier management shakeup, in which both the CEO and CFO were abruptly replaced and the company announced it was changing strategic direction and seeking to sell its European business segment. “By the time we are done fixing our balance sheet, we’ll be very financially secure and all the operations you know and love will be available to you,” Parker said.

When asked if the retooled company would more resemble Envirocare, the company that combined acquisitions to become EnergySolutions, than a U.S. version of AREVA, which then-CEO Steve Creamer envisioned for an expanded EnergySolutions prior to the company’s first initial public offering in 2007, Parker said: “A lot of things have changed since 2007. … You’ve got to transition, to get up off the canvas.” He added, “No, we’re not going to be Envirocare. More like a Duratek combined with Envirocare, with a couple of specialty project capabilities.”

The potential sale of EnergySolutions’ European business, which operates the Magnox cleanup in the UK, would go directly to paying down company debt, Parker said. “We have been looking at that as a chance for debt retirement. If you want to balance your books, you have to have something to sell. These contracts are very attractive, and very valuable.” The company has not ruled out the possibility of seeking a sale of other business segments as they retool their balance sheets: “At this moment, the [European segment] is the only thing we have out for consideration. But I would tell you, as we sort through the core assets of our business and determine what things are on the periphery, other things could be for sale,” he said.

Comments are closed.