Centrus Energy falls after Russia cancels TENEX export license
19/11/2024 15:57
(Updates)
** U.S.-based nuclear fuel supplier Centrus Energy's LEU.N
shares fall 15% to $65
** On Monday, company said it received a notice from
Russia's TENEX cancelling its license to export low-enriched
uranium to the United States, effective through Dec. 31, 2025
** If TENEX, part of Russia's state-owned energy company
Rosatom, is unable to secure export licenses, it would affect
Centrus' ability to meet delivery obligations to customers,
company said
** Roth MKM ("neutral" PT: $58) says if TENEX obtains export
license by year-end 2024, estimate ~$15 mln impact on rev. est.,
and see minimal impact to company
** However, if TENEX unable to get license until
mid-2025, revenue reduction by $65 million in first half of
2025; see Centrus replacing some revenue by buying enriched
uranium in the spot market but will weigh on its margins; Roth
then values company at $44/shr
** If TENEX unable to obtain license for all of 2025,
could result in a $155 million reduction in revenue estimate,
valuing company at $24/shr - Roth MKN
** Including session's losses, Centrus up ~19.5% YTD
(Reporting by Seher Dareen in Bengaluru)
((Seher.Dareen@thomsonreuters.com))