Areva Cuts 2013 Earnings Goal on Delays in Renewables Projects
Areva SA (AREVA), the French maker of nuclear reactors, offshore wind turbines and biomass plants, cut its earnings forecast for 2013, citing financing delays at unspecified renewable energy projects carried out by clients.
Revenue from the renewables division, which was forecast to exceed 750 million euros ($994 million) in 2013, is now expected at about 600 million euros, unchanged from 2012, Paris-based Areva said in a statement today. As a result, earnings before interest, taxes, depreciation and amortization will exceed 1.1 billion euros in 2013, down from a previous forecast of at least 1.25 billion euros, the company said.
The reduction in the revenue forecast is “due to the time required to set up financing for certain customer projects, delaying their execution,” Areva said.
The French company, which is cutting spending and selling assets to shore up a balance sheet that has been impaired by construction delays at a nuclear plant in Finland and investments in African uranium mines that have soured, maintained its 2012 financial targets.
It also reiterated its goal for “break-even free operating cash flow before tax” in 2013, and for revenue growth of 3 percent to 6 percent in its nuclear business next year.
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