The company reported a net loss of $6.9 million for the quarter ending Sept. 30, 2011, compared to net income of $1.0 million. Welch said the result was “in line with the outlook provided to investors.” He said the outcome was a result of higher production and purchase costs, adding that the company expects to make a decision on extending operations at the Paducah enrichment plant in the next few months. “Our power contract with the Tennessee Valley Authority expires May 31, 2012, and we are having discussions with TVA as well as other power providers as we consider electricity purchases beyond that time,” Welch said. “Lower power costs, a depleted uranium tails re-enrichment program with DOE and a solid book of future enrichment contracts will be required to keep our Paducah plant economic and support a decision to extend operations beyond May 2012.”
USEC emphasized uncertainty in the future of the American Centrifuge project in an earnings statement Friday, warning that a project demobilization could be in the works if funding questions are not resolved soon. In late October, the Company announced it was shifting its discussions with the Department of Energy for funding the enrichment plant, focusing on an R&D program instead of a loan guarantee. “However, we have not yet finalized an agreement and obtained funding for such a program and so we are currently evaluating our options regarding the American Centrifuge project, including whether to further reduce spending and begin demobilizing the project,” USEC CEO John Welch said in a Nov. 4 statement accompanying the company’s third quarter earnings. “Given all this uncertainty and the fluidity of discussions with DOE and potential Company decisions that could be made, we wanted to share our third quarter results with investors but postpone holding the investor conference call until we have greater certainty and can have a meaningful conversation with analysts and investors regarding the path forward for the American Centrifuge project.”
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