Karl Herchenroeder
RW Monitor
11/13/2015
Centrus Energy Corp. on Tuesday reported a net loss of $55.1 million for the third quarter of 2015, a drastic plunge from net income of $418.9 million for the same time period in 2014. Through the first three quarters of the year, Centrus has endured a net loss of $85.6 million against $340.1 in net income for the same period last year.
During the company’s earnings conference call, Centrus President and CEO Daniel Poneman described the third quarter as “difficult,” but said it doesn’t tell the whole story. Quarter-to-quarter volatility and distribution lumpiness is common in the energy industry, he said, and Centrus is on track to meet annual projections. The enriched uranium fuel supplier anticipates 40 percent of yearly revenue to come in the fourth quarter. Projections show Centrus earning total annual revenue between $425 million and $450 million, and carrying a year-end cash balance of $175 million to $200 million.
“This has been a difficult quarter because of reduced revenues due to the timing of customer orders, as well as charges taken to reflect a pension remeasurement and accruals for potential termination costs at our American Centrifuge program,” Poneman said in a statement. “That said, our 2015 outlook has not changed, and we expect to generate approximately 40 percent of our revenue for the year in the fourth quarter. We remain focused on aligning our sources of supply with our existing contracts, pursuing future sales opportunities, and adjusting our corporate costs to fit our business objectives.”
According to Centrus, results from 2014 were boosted by net reorganization gains of $426.9 million. The company listed a number of factors that contributed to the third-quarter loss. Among them were lower enrichment-service sales; $21.6 million associated with pension adjustment; $3.2 million in expenses for sales, general, and administrative tasks; and $9.8 million in fees associated with labor reduction. In September, the Department of Energy ceased funding Centrus’ American Centrifuge project in Piketon, Ohio, resulting in workforce cuts.
