Uranium fuel supplier Centrus Energy on Wednesday said it lost $2.9 million in the second quarter of 2016, or $0.32 per basic and diluted share. That was a notably smaller loss than the $15.1 million, or $1.68 per basic and diluted share, reported in the same period of 2015.
The company said it still expects to meet its full-year guidance of $275 million to $300 million in revenue and $200 million to $250 million in cash balance.
Centrus during the quarter spent $3.7 million decontamination and decommissioning of its shuttered American Centrifuge cascade facility in Piketon, Ohio, according to the company’s earnings press release. All work on the advanced uranium enrichment technology has been shifted to Oak Ridge, Tenn.
“The Company is experiencing delays in implementing the D&D process and is working to finalize contractual and regulatory arrangements for the disposition of materials,” the release says. “The charge to advanced technology costs of $4.7 million in the second quarter of 2016 reflects delays as the Company continues to incur period costs as the facility caretaker. The D&D work is now expected to extend through 2017 and additional period costs associated with delays in fully implementing the D&D process are expected. The Company is evaluating the impact the delays will have on future costs.”
Overall revenue at the former United States Enrichment Corp. for the three-month period ending June 30 was $63.4 million, up $0.1 million year over year. Its low-enriched uranium business brought in $54.9 million in revenue, up by 30 percent, or $12.7 million, from second-quarter 2015. “A 19 percent decline in the average sales price was largely offset by an 18 percent decline in the average cost of sales per SWU,” the press release says. “As a result, gross profits in this segment held steady, with a year-over-year increase of $0.1 million, or 2 percent.”
In contract services, revenue was down from $21.1 million in the second quarter of last year to $8.5 million in the latest quarter. “These changes reflect the reduction in the scope of work for American Centrifuge technology services for the U.S. Department of Energy (DOE) under the Company’s contract with UT-Battelle” for the work at Oak Ridge.
“The second quarter was a steady one for Centrus, and we remain on track to meet our revenue and cash balance guidance for the year,” said Centrus President and CEO Daniel Poneman in the release. “We reduced the debt this quarter and are sharply focused on lowering costs, pursuing strategic partnerships and business development opportunities, and repositioning our company as the world’s most diversified supplier of nuclear fuel.”
