REG - Urenco Limited - Urenco 2023 Annual Report
14/03/2024 08:15
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RNS Number : 7787G Urenco Limited 14 March 2024
news release
Date: 14 March 2024
Urenco Group - Full Year 2023 Audited Results: Increased order book and solid
financial and operational performance provide basis for future growth
London - 14 March 2024 - Urenco Group ("Urenco"), an international supplier of
uranium enrichment services and nuclear fuel cycle products, today announces
its results for the full year ended 31 December 2023.
Summary
· Revenue up at €1,922.3 million (2022: €1,716.5 million) due
to higher pricing levels and a higher volume of uranium product deliveries.
· EBITDA((i)) increased to €886.7 million (€824.6 million in
2022) as a result of the higher revenue and despite increased operating costs.
· Net income down at €269.8 million (2022: €285.1 million
pre-exceptional), reflecting higher depreciation following the impairment
reversal in 2022.
· Net cash increased to €1,032.2 million (2022: Net cash €627.2
million), as cash generation from operating activities continues to be strong.
· Order book up by 36% since the start of the year to €14.7
billion.
· Sustainability highlights include carbon emissions (scope 1 and
2) down by 5.4% from 2022.
Financial Highlights (€m) 2023 2022
Revenue 1,922.3 1,716.5
EBITDA((i)) 886.7 824.6
EBITDA margin % 46.1% 48.0%
Income from operating activities (pre-exceptional items) 441.8 443.8
Exceptional items (pre-tax)((ii)) - 921.4
Income from operating activities (post-exceptional items) 441.8 1,365.2
Net income (pre-exceptional items) 269.8 285.1
Exceptional items (post-tax) - 888.1
Net income (post-exceptional items) 269.8 1,173.2
Capital expenditure((iii)) 282.3 184.0
Cash generated from operating activities 1,048.9 1,133.7
Net Cash/ (Net Debt) 1,032.2 627.2
(i) EBITDA is earnings before exceptional items, interest (including other
finance costs), taxation, depreciation and amortisation and results from joint
venture and other investments. Depreciation and amortisation are adjusted to
remove elements of such charges included in changes to inventories and net
costs of nuclear provisions. Further details on the calculation of EBITDA are
set out in note 4 to the Group's Consolidated Financial Statements contained
in the Annual Report and Accounts.
(ii) Exceptional items in 2022 relate to the non-cash reversal of previously
recognised impairment charges of the USA operations of €921.4 million
pre-tax and €888.1 million post-tax.
(iii) Capital expenditure includes net cash flows on the purchases of
property, plant and equipment and intangible assets of €278.4 million (2022:
€166.6 million) and on the decrease of capital accruals of €3.9 million
(2022: €17.4 million) (included in working capital payables).
Boris Schucht, Chief Executive of Urenco Group, commenting on the results,
said:
"Urenco's full year results for 2023 demonstrate our ongoing robust financial,
operational and sustainability performance.
Last year, we adapted our activities and strategic ambition as governments and
customers continued to recognise the role which nuclear energy plays in
providing a secure, low carbon energy supply. Countries are diversifying their
fuel supplies and agreeing to collaborate on guiding principles to support
global, sustainable energy solutions. This was underlined towards the end of
the year at the COP28 climate change conference with the declaration of 25
governments to triple their global nuclear capacity by 2050, providing a real
momentum behind nuclear. Collectively, these drivers have escalated the demand
for our enrichment services in the future.
Sales revenue for the full year increased to €1,922.3 million (2022:
€1,716.5 million) following the agreement of several new customer contracts;
and EBITDA rose to €886.7 million (2022: €824.6 million). The increase in
EBITDA is due to higher revenue and lower net costs of provisions, in part
offset by increased operating costs. Net income decreased to €269.8 million
(2022: €285.1 million) reflecting higher depreciation charges following the
impairment reversal in 2022. Cash generated from operating activities was
€1,048.9 (2022: €1,133.7 million). Net cash was up at €1,032.2 million
(2022: net cash €627.2 million) driven by EBITDA and customer payments.
We have security in our core business through the long-term visibility of our
order book. Our order book extends into the 2040s with a value of €14.7
billion, an increase of 36%. This has provided us with the reassurance to push
ahead with our capacity programme to extend and refurbish enrichment capacity
at our four operational locations. In 2023, we confirmed investments in the
USA, the Netherlands and Germany, delivering capacity extension projects of
1.6m SWU capacity. Due to our ageing fleet, these extension projects, together
with the ongoing refurbishment programme, are required to keep our capacity
stable in the mid and long term.
We are taking steps to develop next generation fuels to make our first
deliveries of low enriched uranium plus (LEU+, uranium enriched up to 10%) by
2025 to enable current reactors to work more efficiently. We are also working
with the UK and US governments to progress options to develop a civil
high-assay low enriched uranium (HALEU - uranium enriched up to 19.75%)
facility to power small and advanced modular reactors.
In relation to our associated services, we are enhancing our stable and
medical isotopes production and the responsible management of nuclear
materials.
Delivery is vital to all of this. We have increased our workforce
significantly in the last year and expect this will continue. To assist with
this, we have created a new employee value proposition to attract and retain
talented people. This is while continuing to develop our company culture to
attract people from a wide range of backgrounds, with well-trained managers to
lead them. I would like to thank our employees for all their hard work during
the year and for making it a successful one."
Sustainability and decarbonisation
Our work on sustainability is vital to what we do. We want to make a positive
contribution to global climate change goals, not only as part of our role in
the nuclear industry, but also through our commitment to achieve an absolute
reduction in carbon emissions by 2030 within our direct operations, and net
zero overall by 2040, including within our supply chain.
Our first Net Zero Transition Plan
(https://www.urenco.com/cdn/uploads/supporting-files/Transition_to_Net_Zero_Final.pdf)
was published in 2023, outlining what actions we will take to reach net zero
emissions. Natural gas, refrigerants and diesel make up the majority of our
scope 1 emissions and we are investigating solutions to lower them. We are
ensuring all sites have a supply of low carbon electricity by 2030 to tackle
scope 2 emissions. This includes building large-scale solar panel
installations capable of reducing our sites' peak electricity demand. We are
also continuing to engage with both the nuclear fuel cycle and our supply
chain to lower our scope 3 emissions.
Our scope 1 and 2 carbon emissions (combined) decreased by 5% compared to 2022
and by 30% when compared to our 2019 baseline year. We enriched enough uranium
to generate an estimated 760,000 GWh of electricity from nuclear power,
avoiding circa 380 million tonnes of carbon emissions 1 (#_ftn1) . We have
maintained our strong performance in the Carbon Disclosure Project, achieving
a B score for the second year running for our climate change related
activities across the business.
In other areas of sustainability, our water withdrawal increased by 1.8%
compared to 2022 but reduced by 10.6% against our baseline year of 2020 (water
withdrawal refers to total water consumption combined with total water
discharge). We continue to meet all of our customer deliveries, and the volume
of our annual stable and medical isotopes sales equated to approximately two
million patient treatments being performed in the medical sector.
Outlook and Order Book
Our presence across four geographies enables us to provide a uniquely secure
and diverse supply of enrichment services.
Our purpose is to enrich the future with carbon free energy. We see it as our
duty to contribute to energy security and low carbon electricity generation
for consumers around the world. We deliver consistently high operational and
financial performance and have been serving our customers for more than 50
years, now in 19 countries and with a reliable delivery record.
SWU spot prices are increasing. From US$110/SWU and US$125/SWU at the end of
2022, they have continued on an upward trajectory, reaching US$155.00 and
US$159.00/SWU respectively by the end of December 2023, as reported by both
Tradetech and UxC.
We are signing new contracts and extending existing ones, growing our customer
base and raising our profile in new geographic markets. We have long term
visibility in our order book, extending into the 2040s. Its value as of 31
December 2023 was €14.7 billion, based on €/$ of 1 : 1.10 (31 December
2022: €10.8 billion based on €/$ of 1 : 1.07).
We are optimistic about the prospects for our core enrichment business as the
market looks for greater capacity in the nuclear fuel supply chain. There are
also significant opportunities in the market for advanced fuels and stable
isotopes for medical and industrial purposes, which we will continue to
explore.
Board
In 2023, Miriam Maes retired from the Board as Dutch appointed Non-Executive
Director and we welcomed Renee Jones-Bos to the position. The Board of Urenco
greatly appreciates and thanks Miriam for the significant contribution that
she has made over the past eight years.
-- ENDS --
The Full Year 2023 Audited Financial Results and commentary are available here
(https://www.urenco.com/investors/annual-report) .
Contact
Nic Brunetti
Senior Communications Officer, Urenco
+44 (0)151 6764142
Evan Byrne
Madano 07809 390 664
evan.byrne@madano.com
urenco@madano.com (mailto:urenco@madano.com)
About Urenco Group
Urenco is an international supplier of enrichment services and fuel cycle
products with sustainability at the core of its business. Operating in a
pivotal area of the nuclear fuel supply chain for more than 50 years, Urenco
facilitates zero carbon electricity generation for consumers around the world.
With its head office near London, UK, Urenco's global presence ensures
diversity and security of supply for customers through enrichment facilities
in Germany, the Netherlands, the UK and the USA. Through our technology and
the expertise of our people, the Urenco Group provides safe, cost effective
and reliable services, operating within a framework of high environmental,
social and governance standards, complementing international safeguards.
Urenco is committed to continued investment in the responsible management of
nuclear materials; innovation activities with clear sustainability benefits,
such as nuclear medicine, industrial efficiency and research; and nurturing
the next generation of scientists and engineers.
Visit urenco.com (https://www.urenco.com/)
Disclaimer
This press release is not intended to be read as the Group's statutory
accounts as defined in section 435 of the Companies Act 2006. Information
contained in this release is based on the 2023 Consolidated Financial
Statements of the Urenco Group, which were authorised for issue by the Board
of Directors on 13 March 2024. The auditor's report on the 2023 Consolidated
Financial Statements of the Group was unqualified and did not contain a
statement under section 498 of the Companies Act 2006. The Group's 2022
statutory accounts have been delivered to the registrar of companies.
This release and the information contained within it does not constitute an
offering of securities or otherwise constitute an invitation or inducement to
underwrite, subscribe for or otherwise acquire securities in any company
within the Urenco Group.
Any forward-looking statements contained within this release are inherently
subject to risks and uncertainties. Actual results may differ materially from
those expressed or implied by such forward-looking statements and,
accordingly, any person reviewing this release should not rely on such
forward-looking statements.
1 (#_ftnref1) As a proportion of the nuclear carbon offset as calculated by
the International Energy Agency.
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