Areva Sees Heavy Losses For 2015 As Negotiations Begin On Sale of Areva TA

Nucnet | 18 December 2015

French nuclear group Areva’s net income for 2015 will show “a heavy loss”, but discussions have begun on the sale of propulsion and research reactors business Areva TA, with the most likely outcome being that the state will become the direct majority shareholder. This proposal is in “the preliminary stage”, Areva said, and will necessitate dialogue with unions and approval by Areva’s governing bodies. In a progress report on its 2015 financial outlook, Areva said net cash flow from operating activities is expected to be about minus €1.2bn ($1.3bn) compared to an initial forecast of minus €1.7bn to minus €1.3bn. Including net savings already generated by a competitiveness plan announced earlier this year, negative net cash flow would be €0.9bn, Areva said. The progress report said negotiations with French nuclear operator EDF about the sale of a majority share of reactor business subsidiary Areva NP are making progress and could be concluded early next year. EDF said in July 2015 it had agreed to buy “at least 51 percent” of Areva NP. The Areva group’s restructuring and a related financing plan will be specified during the publication of 2015 results at the latest, the company said. Areva also said firm offers will be submitted before the end of the year for a planned sale in 2016 of its UK-based subsidiary Canberra, which supplies instrumentation for the nuclear industry.

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