French nuclear company Orano’s revenue dipped by nearly $100 million over the first half of 2018, while operating income posted a large gain even as net income fell even further into the red.
The Paris-based nuclear fuel cycle specialist, part of what remains of the former AREVA, reported 1.71 billion euros ($1.99 billion) in revenue for the period from Jan. 1 to June 30 of this year. That was down from 1.79 billion euros ($2.08 billion) in the same period of 2017.
Operating income skyrocketed from a 21 million-euro ($24.5 million) loss last year to a gain of 163 million euros ($190 million) in the latest reporting period. However, net income attributable to owners of the parent fell further from a 154 million-euro ($179 million) loss in first-half 2017 to a 205 million-euro ($238 million) loss in the same time frame of 2018. In a press release, Orano attributed the dip to “the deterioration in net financial income, impacted by the financial markets.”
The news was overall good in the company’s back-end nuclear segment, which covers recycling, logistics, dismantling and services, and projects. Revenue rose 4.8 percent in this business, to 862 million euros ($1 billion). “Production losses at the La Hague and Melox sites (social conflicts and technical problems) and the lower volume of business in Logistics were more than offset by the growth in business with foreign customers in other activities,” the release says.
Management attributed a 27 million-euro ($31.5 million) boost in operating income in the back-end business, from 14 million euros ($16.3 million) to 41 million euros ($47.8 million) on a year-over-year basis, to increased business with foreign clients.
Orano took home several new contracts during the first half of 2018, including dismantling work in the United Kingdom, nuclear waste logistics and storage cask provision in the U.K., and waste packaging and other operations for clients in Japan and Ukraine. The company also announced its partnership with Waste Control Specialists on a planned interim spent fuel storage site in Texas.
