AREVA: Results for the first half of 2009

Press release


August 31, 2009

  • Backlog of 48,876 million euro: +28% compared to June 30, 2008
  • Sales revenue of 6,522 million euro: + 6% compared to the first half of 2008
  • Operating income before additional provision for the Finnish OL3 project: 566 million euro, representing an operating margin of 8.7%
  • Operating income: 16 million euro
  • Net income attributable to equity holders of the parent: 161 million euro,
    or 4.55 euro per share
  • Net debt of 6,414 million euro[1]
  • AREVA capital increase and opening of capital to strategic and industrial partners and launch of an open call for bids for the T&D activity
  • Granting of a long-term Standard & Poor’s "A" rating and confirmation of the short-term "A1" rating – stable outlook

The Supervisory Board of the AREVA group met today under the chairmanship of Jean-Cyril Spinetta to examine the financial statements for the first half of 2009, as submitted by the Executive Board.
Commenting on these results, Anne Lauvergeon, Chief Executive Officer, made the following statement:

"At June 30, 2009, our backlog reached a record high, while sales revenue increased by 6% over the first half. A half-year is traditionally not very representative of the operational performance in the nuclear industry. It is especially true over the first 6 months of 2009 owing to very unfavourable seasonality effects: by comparison, we had already realised 80% of the operating income for the year just in the first half of 2008. For the full year 2009 and based on the consolidation scope as at June 30, we anticipate strong growth in backlog and in sales revenue and an operating income close to that of 2008.

AREVA's integrated business model has again demonstrated its effectiveness. During the half-year, we signed a memorandum of understanding with NPCIL for an integrated offering, 2 to 6 reactors, fuel cycle and T&D. We are actively pursuing negotiations with Duke for an EPR in the United States and with EDF for 4 EPR in the United Kingdom.

In Olkiluoto the reactor dome will be installed very shortly. Final steps will be focused on piping, testing and commissioning activities. However, the fact that the client TVO has not yet implemented the specific measures for speeding up the work, which were agreed upon in June 2008, is causing delays and additional costs.

AREVA has sent proposals to TVO in order to get back to methods of execution that are in line with usual practices for major projects. We will only commence the final phases of the works when TVO has agreed upon the proposals that have been made or issued contract amendments that provide for the requested modifications. In this context we have recorded an additional provision with respect to this contract in the first half.

On June 30 this year we announced a strategic and financial development plan that is essential for the future of the group. The opening of capital to strategic partners will enable us to deepen and extend our industrial and commercial relationships. This will strengthen both our balance sheet and our ability to raise the necessary resources for our development. Besides we have been granted a long-term
"A" rating by the Standard & Poor's rating agency and our short-term "A1" rating has been confirmed.

Finally, we have signed a new long-term partnership agreement with SIEMENS that ensures the continuity of our co-operation in the field of instrumentation and control systems for nuclear reactors.

[1] Including the SIEMENS put option at its 2007 value, i.e. 2,049 million euro.