Areva:At September 30, 2012:
Backlog at a record level^1 of €47bn
(+10.1% year on year)
Revenue up sharply to €6.542bn
(+10.0% compared with September 2011, +8.5% like for like)
PARIS -- October 25, 2012
Luc Oursel, Chief Executive Officer, offered the following comments on the
Group’s performance over the first nine months of 2012:
“The recognition of AREVA’s offering quality enables us to achieve a record
level of 47billion euros in backlog as of the end of September. The sharp
increase in order intake over the first nine months of the year illustrates
the Group’s ability to meet the needs of customers around the world for their
installed base of nuclear reactors.
The strong increase in revenue over the period is driven by recurring business
in nuclear energy on the one hand and business growth in renewable energies on
the other hand.
These items once again confirm the progress we have made in deploying our
Action 2016 strategic plan.”
It should be noted that revenue may vary significantly from one quarter to the
next in the nuclear operations. Accordingly, quarterly data should not be
viewed as a reliable indicator of annual trends.
Revenue Backlog at
9 months 9 months Change
2012 2011 LFL
(millions of euros) (millions of
Mining BG 1,033 787 +31.3% +28.0% 12,824
Front End BG 1,319 1,466 -10.0% -12.1% 18,514
Reactors & Services 2,456 2,393 +2.6% +2.1% 8,520
Back End BG 1,226 1,086 +13.0% +11.8% 5,793
Sub-total Nuclear 6,035 5,731 +5.3% +3.9% 45,651
Renewable Energies BG 398 109 +265.2% +272.0% 1,282
Corporate / Other^2 109 110 ns ns 87
Total 6,542 5,950 +10.0% +8.5% 47,020
Revenue - France 2,429 2,207 +10.0% ns ns
Revenue - 4,113 3,742 +9.9% ns ns
^1 Nuclear and renewable energies scope
^2 Mainly CIS operations
AREVA generated consolidated revenue of 6.542 billion euros over the first
nine months of 2012, representing growth of 10.0% (+8.5% growth like for
like) compared with the same period in 2011. Revenue growth was fueled by a
7.0% increase in recurring business^1 (+5.6% like for like) and ramp-up of the
Revenue from nuclear operations was 6.035 billion euros over the first nine
months of 2012, compared with 5.731 billion euros for the first nine months of
2011, representing a 5.3% increase (+3.9% like for like). Like for like,
revenue was led by the Mining BG (+28.0%), the Reactors & Services BG (+2.1%)
and the Back End BG (+11.8%), offsetting the downturn in business in the Front
End BG (-12.1%). Revenue was up 272% like for like in renewables. Foreign
exchange had a positive impact of 130 million euros over the period. The
change in consolidation scope had a negative impact of 52 million euros.
Revenue growth was balanced between France and internationally, reflecting
AREVA’s ability to capture market opportunities while capitalizing on
long-standing relations with its customers.
Sales revenue for the third quarter of 2012 was 2.214 billion euros, an
increase of 13.4% (+12.4% like for like) compared with the third quarter of
2011. Foreign exchange had a positive impact of 52million euros over the
period, while the change in consolidation scope had a negative impact of 34
At September 30, 2012, the consolidated backlog for the nuclear and renewables
businesses was the highest since the Group was established, at a total of 47
billion euros. This represents an increase of 10.1% in relation to September
30, 2011 (42.7 billion euros) and an increase of 4.1% in relation to
June 30, 2012 (45.2 billion euros). The increase is attributable mainly to the
Mining, Front End and Reactors & Services BGs.
Order intakes over the first nine months of the year were up 87% compared with
first nine months of 2011.
Order cancellations attributable to the Fukushima accident rose 95 million
euros during the third quarter in the Front End BG, bringing the total to 742
million euros at September 30, 2012, compared with 647 million euros at June
^3 Excluding revenue from New Builds and International Projects BUs and
Renewable Energies BG
I. Backlog and revenue by Business Group
The Group signed an integrated contract of more than 400 million euros with
Emirates Nuclear Energy Corporation (ENEC) to supply enriched uranium to the
new Barakah nuclear power plant under construction in the United Arab Emirates
over an eight-year period. This contract is included in the backlog for the
Mining and Front End BGs.
Mining Business Group
The Mining BG had 12.8 billion euros in backlog at September 30, 2012, an
increase of 26.9% year on year.
Contracts signed in the third quarter of 2012 include two major contracts to
supply 30,000 metric tons of uranium to EDF over the 2014-2035 period.
Over the first nine months of 2012, the Mining BG reported revenue of 1.033
billion euros, an increase of 31.3% (+28.0% like for like) in relation to the
first nine months of 2011. Foreign exchange had a positive impact of 39
million euros, while changes in consolidation scope had a negative impact of
18 million euros.
Revenue was boosted by the increase in volumes delivered over the period
(+13%), reflecting the favorable timing of deliveries, and by the increase in
the average sales price resulting from our contracts.
Front End Business Group
The Front End BG had 18.5 billion euros in backlog at September 30, 2012, an
increase of 5.1% compared with September 30, 2011.
The Chemistry business concluded several contracts with US utilities during
the third quarter.
The Front End BG reported revenue of 1.319 billion euros over the first nine
months, a drop of 10.0% (- 12.1% like for like) compared with the first nine
months of 2011.
Foreign exchange had a positive impact of 35 million euros.
*Revenue from the Enrichment business was impacted by a decrease in volumes
exported, mainly to Japan and the United States, in line with forecasted
level of activity for 2012.
*In the Fuel business, revenue was down due to a decrease in volumes
delivered in Germany.
Reactors & Services Business Group
Backlog in the Reactors & Services BG was up sharply to 8.5 billion euros at
September 30, 2012, an increase of 20.9% in relation to September 30, 2011.
The deployment of the Safety Alliance program, designed to help AREVA
customers strengthen safety levels in their facilities, continued in the third
quarter with the signature of contracts to supply safety solutions and
equipment in Asia and Europe.
The Reactors & Services BG reported 2.456 billion euros in revenue over the
first nine months of 2012, for growth of 2.6% (+2.1% like for like) compared
with the first nine months of 2011.
Foreign exchange had a positive impact of 47 million euros, while changes in
consolidation scope had a negative impact of 34 million euros.
*Revenue for the New Builds business reflects the percentage of completion
of major reactors construction projects. Based on current completion and
the impact of the provision recognized in the first half of 2012 for the
OL3 project in Finland (see press release of July 26, 2012), New Builds
revenue was down despite a higher contribution from the Taishan and
Hinkley Point projects.
*Installed Base Services were up, due in particular to sales associated
with the Safety Alliance program, primary component replacement operations
in France and strong business in the United States, offsetting the drop in
demand in Germany.
Back End Business Group
The Back End BG had 5.8 billion euros in backlog at September 30, 2012, a
decrease of 4.1% in relation to September 30, 2011.
Several contracts with US utilities were signed in the Logistics business
during the third ^ quarter.
The Back End BG reported revenue of 1.226 billion euros in the third quarter
of 2012, an increase of 13.0% in reported data and of 11.8% like for like in
relation to the same period in 2011. Foreign exchange had a positive impact of
11 million euros.
The BG’s upward revenue trend is the result of two opposing effects:
*the growth of revenue in the Recycling business due to an increase in
volumes processed at the La Hague plant in the third quarter of 2012
compared with the third quarter of 2011, when production had been
*lower activity in the Nuclear Site Value Development business, which had
recognized sales in 2011 associated with the supply of a solution to treat
contaminated water at the Fukushima Daiichi site in Japan.
Renewable Energies Business Group
The Renewable Energies BG had 1.3 billion euros in backlog at September 30,
2012, down 28.6% in relation to September 30, 2011, in line with contract
execution, in the absence of significant new order.
The Renewable Energies BG reported revenue of 398 million euros over the first
nine months of 2012, an increase of 265.2% on a reported basis and of 272.0%
like for like in relation to the same period in 2011.
*Offshore Wind revenue was up sharply, reflecting work in progress at the
GlobalTech I and Borkum West II projects in Germany.
*Revenue in the Biomass BU is up due to business deployment in Europe and
*Revenue in the Solar business is up thanks to progress at the Kogan Creek
project in Australia and the Reliance project in India.
II. Information on the Group's financial position and performance
On July 24, 2012, AREVA sold its subsidiary Pathfinder Mines Corporation to Ur
On August 28, 2012, AREVA closed the sale of its equity interest in La Mancha
Resources Inc. In response to the public offer launched by Weather Investments
II to acquire all of the shares of La Mancha Resources Inc., AREVA contributed
its entire interest of about 63% of La Mancha for a price of approximately 315
million Canadian dollars.
During the quarter, the Group continued to implement its performance
improvement plan, which calls in particular for a reduction in operating costs
of 1 billion euros on an annual basis by 2015.
Mining Business Group
6,802 metric tons of uranium were produced over the first nine months of the
year (share of production available to AREVA), compared with 6,316 metric tons
over the first nine months of 2011, for growth of 7.7%.
Front End Business Group
Following the final shutdown of the Eurodif uranium enrichment plant in June
2012, full shutdown operations were performed as scheduled in preparation for
the dismantling planning and dismantling operations phases.
Reactors & Services Business Group
The Olkiluoto 3 project in Finland (AREVA scope: a complete power plant teamed
with Siemens) is now more than 82% complete and the testing and fine-tuning
phase has begun. The completion on site is more than 77%, reflecting
electro-mechanical and finishing work.
The first nine months of 2012 were marked by:
*the significant ramp-up of testing and operational readiness activities in
liaison with TVO;
*accelerated deployment of the end-of-construction and finishing phases.
Testing started in the turbine building and in the reactor building, with the
focus on the following:
*the cooling systems were filled with water in July in a coordinated effort
by the consortium teams and those of TVO, marking the first successful
milestone for the functioning of the integrated operational readiness
*the piping between the steam generators and the turbine were cleaned up;
*several electrical systems were commissioned;
*testing of the mechanical units has begun (pool handling systems and
technological waste treatment).
On July 5, 2012, the Court of Arbitration of the International Chamber of
Commerce (ICC) constituted to settle the dispute between the AREVA-Siemens
consortium and TVO rendered a partial verdict enjoining TVO to release 100
million euros due to the consortium and withheld in contravention of
contractual provisions. TVO made the payment that same month. On September 28,
2012, in accordance with the schedule set by the arbitration court, TVO
submitted its claim together with its response to the initial claim filed by
the consortium last June in the amount of 1.9 billion euros for damages
suffered by the consortium for the part of the project completed as of July
31, 2007. The consortium is now preparing its claim for the 2007-2011 period.
TVO filed a counterclaim for damages in the amount of 1.8 billion euros.
At the Flamanville 3 construction site in France (AREVA's scope: the nuclear
steam supply system), work continues according to the customer’s schedule.
*For AREVA’s scope, 94% of the procurement has already been completed,
while engineering is more than 75% complete*;
*Manufacturing of the primary components is nearing completion: the four
steam generators, the pressurizer and the reactor coolant pump casings
have been tested and stocked;
*The reactor vessel support ring and the supports for the primary
components were installed at the site in the summer. The first
instrumentation and control system cabinets are currently being installed.
At the Taishan construction site in China (AREVA’s scope: two nuclear
islands), the following major milestones have been reached:
*welding of the primary legs of unit 1 began in July;
*in September, the polar crane was lifted with technical assistance from
AREVA and the dome of unit 2 was installed (ten months after the dome of
*in October, the first steam generator of unit 1 was installed successfully
in the reactor building.
Renewable Energies Business Group
On July 23, 2012, AREVA announced the acquisition of a technology used to
produce biocoal. This technology, based on the Thermya torrefaction process,
is without equivalent in the world and is currently under commercial
deployment. The biofuel it produces from biomass is able to improve the
efficiency of biomass power plants and replace fossil coal to produce thermal
energy and electricity.
* taking into account work called for in amendments to the initial contract
related to the inclusion of modifications necessary for startup and
preparation of the Operating License request
III. Important operations and events during the period
On July 18, 2012, Luc Oursel and Sergey Kiriyenko, CEO of Rosatom, signed a
memorandum of understanding officially establishing working groups to study
the terms for strengthened cooperation in the field of nuclear power between
the two groups.
On July 27, 2012, Roche and AREVA’s subsidiary AREVA Med announced that they
had formed a strategic partnership to create an advanced alpha
radio-immunotherapy platform to target and destroy cancer cells. The alliance
will focus primarily on the treatment of cancers for which medical
requirements are still far from being satisfied.
Reactors & Services Business Group
On July 2, 2012, AREVA responded to a call for tender for the construction of
the Temelin 3 and 4 reactors in the Czech Republic. On October 5, 2012, the
Czech utility CEZ announced that it excluded AREVA from the tender procedure.
AREVA objected to its exclusion and addressed each of the grounds for
exclusion raised by CEZ. The Group remains convinced that its offer, which is
complete and detailed, complies fully with the rules and criteria stipulated
in the call for tender.
On July 12, 2012, the national utility of Argentina, Nucleoeléctrica Argentina
(NA-SA), informed ATMEA of its decision to pre-qualify the ATMEA1 technology
for the upcoming call for tender to be launched for the construction of the
country’s fourth nuclear power plant.
AREVA and its Chinese partner CGN retracted their expression of interest in
the Horizon Nuclear Power (HNP) project in Great Britain and consequently did
not respond to the request for proposals issued by the project’s shareholders,
E.ON and RWE, for the disposal of their joint venture.
Renewable Energies Business Group
On July 6, 2012, the AREVA group won the call for tender issued by the city of
La Croix Valmer (Var department, France) to supply a Greenergy Box energy
storage system. The Greenergy Box is used to store hydrogen and oxygen
generated by water electrolysis when power demand is low and recombines them
to produce electricity when power demand is high.
On July 19, 2012, AREVA chose the Beaumont-Hague site for its concentrated
solar power (CSP) test center, thus renewing its commitment to spearheading
the development of industrial know-how in France. This unique project will be
developed in the Beaumont-Hague Research Hall,where more than 80 of the
Group’s research scientists are already working, with more than 3,000 m² of
In the uranium market, the spot price dropped from 51.9$/lb at the end of 2011
to 43.5$/lb at October 15, 2012. The long-term indicator went from 62$/lb at
the end of 2011 to 60$/lb at September 24, 2012 (source: UxC).
On September 14, the Democratic Party currently in power in Japan announced
its energy policy objectives. They will be reviewed periodically and will take
into account the evolution of the country’s environment. Following those
announcements, the new Japanese safety authority was established. It may
authorize the restart of reactors currently shut down which meet the required
safety and security criteria.
On September 28, 2012 took place the Nuclear Policy Council whose conclusions
were reported in a press release by the French Republic Presidency on October
Appendix – Consolidated revenue
2012/2011 2012 / 2011 change
Millions of euros 2012 2011
change like for like
Mining 313 280 +11.9% +6.5%
Front End 432 522 -17.2% -18.3%
Reactors & Services 782 739 +5.8% +6.0%
Back End 374 371 +0.8% +0.4%
Renewable Energies 85 29 +198.2% +199.8%
Corporate and other 39 38 ns ns
Total 2,026 1,979 +2.4% +1.3%
Mining 333 234 +41.9% +33.5%
Front End 475 392 +21.3% +18.0%
Reactors & Services 865 865 0.0% -1.1%
Back End 430 459 -6.4% -6.9%
Renewable Energies 167 30 +450.0% +463.0%
Corporate and other 32 37 ns ns
Total 2,303 2,018 +14.1% +12.1%
Mining 646 514 +25.6% +18.9%
Front End 908 914 -0.7% -2.6%
Reactors & Services 1,647 1,604 +2.7% +2.1%
Back End 804 830 -3.2% -3.9%
Renewable Energies 253 59 +328.0% +334.3%
Corporate and other 71 75 ns ns
Total 4,329 3,997 +8.3% +6.7%
Mining 387 272 +42.2% +46.6%
Front End 411 551 -25.4% -27.6%
Reactors & Services 809 789 +2.6% +1.9%
Back End 423 255 +65.5% +62.4%
Renewable Energies 145 50 +190.9% +197.6%
Corporate and other 38 35 ns ns
Total 2,214 1,953 +13.4% +12.4%
Mining 1,033 787 +31.3% +28.0%
Front End 1,319 1,466 -10.0% -12.1%
Reactors & Services 2,456 2,393 +2.6% +2.1%
Back End 1,226 1,086 +13.0% +11.8%
Renewable Energies 398 109 +265.2% +272.0%
Corporate and other 109 110 ns ns
Total 6,542 5,950 +10.0% +8.5%
► Like for like / LFL: at constant exchange rates and consolidation scope.
► Foreign exchange impact: the foreign exchange impact mentioned in this
release comes from the translation of subsidiary accounts into the Group’s
unit of account. The latter is primarily due to changes in the US dollar in
relation to the euro. AREVA also points out that its foreign exchange hedging
policy for commercial operations aims to shield profitability from
fluctuations in exchange rates in relation to the euro.
► Forward-looking statements
This document contains forward-looking statements and information. These
statements include financial forecasts and estimates as well as the
assumptions on which they are based, and statements related to projects,
objectives and expectations concerning future operations, products and
services or future performance. Although AREVA’s management believes that
these forward-looking statements are reasonable, AREVA’s investors and
shareholders are hereby advised that these forward-looking statements are
subject to numerous risks and uncertainties that are difficult to foresee and
generally beyond AREVA’s control, which may mean that the expected results and
developments differ significantly from those expressed, induced or forecast in
the forward-looking statements and information. These risks include those
explained or identified in the public documents filed by AREVA with the AMF,
including those listed in the “Risk Factors” section of the Reference Document
registered with the AMF on March 29, 2012 (which may be read online on AREVA’s
website www.areva.com). AREVA makes no commitment to update the
forward-looking statements and information, except as required by applicable
laws and regulations.
Upcoming events and publications
January 31, 2013 – 17:45 CEST: Press release – 2012 sales revenue
February 28, 2013 – 17:45 CEST: Conference and webcast – 2012 annual results
AREVA supplies solutions for power generation with less carbon. Its expertise
and unwavering insistence on safety, security, transparency and ethics are
setting the standard, and its responsible development is anchored in a process
of continuous improvement.
Ranked first in the global nuclear power industry, AREVA’s unique integrated
offering to utilities covers every stage of the fuel cycle, nuclear reactor
design and construction, and related services. The group is also expanding in
renewable energies – wind, solar, bioenergies, hydrogen and storage – to be
one of the top three in this sector worldwide in 2012.
With these two major offers, AREVA’s 48,000 employees are helping to supply
ever safer, cleaner and more economical energy to the greatest number of
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